Narrative
Full Description
Project narrative
In or around November 28, 2020, a syndicate of 35 banks — including the Export-Import Bank of China — entered into a $3.5 billion USD syndicated unsecured term loan facility agreement with Qatar National Bank Q.P.S.C. (QNB) — a Qatari multinational commercial bank headquartered in Doha, Qatar owned by the Qatar Investment Authority (QIA) (50% stake) and by members of the public (via the Qatar Stock Exchange) (50% stake) — for refinancing purposes. This loan was divided into two tranches: a $2 billion USD tranche known as 'Tranche A' with a maturity period of three years and an interest rate of LIBOR plus a margin of 80 basis points (bps) and a $1.5 billion USD tranche known as 'Tranche B' with a maturity period of five years and an interest rate of LIBOR plus a margin of 110 bps. The proceeds were to be used by the borrower to refinance a $3.5 billion USD loan signed in 2017 and due in December 2020. In addition to China Eximbank, the following lenders contributed to the loan syndicate: Bank of America, Barclays Bank Plc, HSBC Bank, Malayan Banking Berhad (Maybank), Mizuho Bank, MUFG Bank, Ltd., Standard Chartered Bank plc, Sumitomo Mitsui Banking Corporation (SMBC), United Overseas Bank Limited (UOB), JPMorgan Chase Bank, N.A., Intesa Sanpaolo S.P.A., Citigroup, ING Group N.V., Korea Development Bank (KDB), State Bank of India (SBI), DBS Bank, Deutsche Bank AG, Bank of New York Mellon (BNY Mellon), Bank of India, Morgan Stanley, Taipei Fubon Commercial Bank, Mega International Commercial Bank, Hua Nan Commercial Bank (HNCB), Shinsei Bank, Chang Hwa Commercial Bank Limited, First Commercial Bank Limited, Taishin International Bank, Taiwan Business Bank (TBB), Taiwan Cooperative Bank, AfrAsia Bank Limited, The Joyo Bank, the Export-Import Bank of the Republic of China, Gunma Bank, and The Hyakugo Bank, Ltd.. Bank of America, Barclays Bank, HSBC, Maybank, Mizuho Bank, MUFG Bank, Standard Chartered Bank, SMBC, and UOB served as underwriters. JPMorgan Chase Bank and Intesa Sanpaolo served as initial mandated lead arrangers. Mizuho served as facility agent. HSBC served as documentation coordinator. Citigroup, ING Group, KDB, and China Eximbank served as senior mandated lead arrangers. SBI, DBS Bank, Deutsche Bank, BNY Mellon, and Bank of India served as mandated lead arrangers. Morgan Stanley and Taipei Fubon Commercial Bank served as lead arrangers. Mega International Commercial Bank, HNCB, Shinsei Bank, Chang Hwa Commercial Bank, First Commercial Bank , Taishin International Bank, TBB, Taiwan Cooperative Bank, AfrAsia Bank, Joyo Bank, the Export-Import Bank of the Republic of China, Gunma Bank, and Hyakugo Bank served as arrangers.
Staff comments
1. The individual contributions of the 35 lenders to this $3.5 billion USD syndicated loan facility are unknown, nor it is known how the lenders contributed to the both tranche. For the time, AidData has assumed each lender contributed to each tranche. Therefore, to estimate China Eximbank's contributions, AidData has assumed that each lender contributed equally ($100,000,000 USD) to the loan syndicate. 2. As it is unclear how much China Eximbank contributed to each tranche, assuming they did contribute to each tranche, AidData has taken the average of the maturity periods {[(3 + 5) / 2] = 4} and the average of the interest rate margin and used it to code the margin of interest rate {[(80 + 110) / 2] = 95 bps} to feed into the interest rate.