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Overview

ICBC contributes to debt rescheduling — via one year maturity extension — to $1.6 billion USD revolving credit facility to National Rural Utilities Cooperative Finance Corporation for general corporate purposes in 2016 (Linked to Record ID#107976 and #107977)

Commitment Year•2016Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 18, 2016
Last repayment (originally scheduled)
Nov 19, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Apple Bank for Savings Inc.
  • Bank of Nova Scotia (Scotiabank)
  • BBVA USA (formerly BBVA Compass or Compass Bank, now PNC Financial Services)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • KeyBank National Association
  • Mizuho Bank (USA) (formerly Mizuho Corporate Bank (USA))
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • PNC Bank, National Association
  • Regions Financial Corporation (Regions Bank)
  • Royal Bank of Canada (RBC)
  • SunTrust Bank
  • U.S. Bank National Association

Receiving agencies

Private Sector

  • National Rural Utilities Cooperative Finance Corporation

Loan description

ICBC contributes to debt rescheduling — via one year maturity extension — to $1.6 billion USD revolving credit facility to National Rural Utilities Cooperative Finance Corporation for general corporate purposes in 2016 (Linked to Record ID#107976 and #107977)

Interest rate (t₀)•2.17933%Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On November 19, 2015, financial close was reached on a deal in which a syndicate of 15 banks — including Bank of Communications and ICBC — entered into a $1,700,000,000 USD syndicated loan agreement with National Rural Utilities Cooperative Finance Corporation (CFC) — a United States-based, member-owned nonprofit cooperative that provides financial products to utility cooperatives nationwide. This loan was divided into two tranches: the 2019 tranche ($100,000,000 USD), which matures on October 28, 2019, and the 2020 tranche ($1,600,000,000 USD), which matures on November 19, 2020. The interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. While Bank of Communications contributed $20,000,000 USD to the 2019 tranche (Record ID#107976), ICBC contributed $40,000,000 USD to the 2020 tranche (Record ID#107977), the following lenders also participated: National Cooperative Services Corporation ($55,000,000 USD) and Compass Bank ($25,000,000 USD) in the 2019 tranche; and JPMorgan Chase Bank, N.A. ($180,000,000 USD), Mizuho Bank (USA) ($187,500,000 USD), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($187,500,000 USD), Royal Bank of Canada ($187,500,000 USD), KeyBank National Association ($180,000,000 USD), The Bank of Nova Scotia ($180,000,000 USD), U.S. Bank National Association ($125,000,000 USD), SunTrust Bank ($125,000,000 USD), PNC Bank, National Association ($125,000,000 USD), Regions Bank ($75,000,000 USD), and Apple Bank for Savings ($7,500,000 USD) in the 2020 tranche. On November 18, 2016, the borrower and lenders signed into an amendment in which they terminated several lenders’ commitments, including that of Bank of Communications. In addition, they extended several lenders’ commitment termination dates to November 19, 2021, including that of ICBC (Record ID#107978) On November 20, 2017, they entered into 2nd amendment in which they terminated several lenders’ commitments, including that of ICBC.

Staff comments

1. The entirety of the loan contract can be accessed at https://contracts.justia.com/companies/national-rural-utilities-cooperative-finance-corp-6858/contract/335832/ The dropbox link for the original loan contract is located via: https://www.dropbox.com/scl/fi/t70ahnsr5ib1j7mbvhsro/Source_ID_217677.pdf?rlkey=ao24tqtgthwv1lqlqs1hi3hck&st=9b38dywe&dl=0 2. National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit, member-owned cooperative headquartered in Virginia, USA. It provides financing to electric cooperatives and other utility service providers across rural America. 3, AidData estimates the interest rate by adding the 6-month average LIBOR rate in November 2016 and an applicable margin based on credit ratings (A or 0.9%).