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Overview

Bank of China contributes $67 million USD to $4 billion USD to Hess Corporation and its subsidiaries for working capital and general corporate purposes in 2015 (Linked to Record ID#108115, #108116, #108117 and #108118)

Commitments (Constant USD, 2023)$70,095,292
Commitment Year2015Country of ActivityUnited StatesDirect Recipient Country of IncorporationMultiple JurisdictionsOverseas JurisdictionUnited StatesSectorEnergyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 21, 2015
Last repayment (originally scheduled)
Jan 20, 2020

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • BNP Paribas S.A.
  • Branch Banking and Trust Company (BB&T)
  • Citibank, N.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • DNB Capital LLC
  • Goldman Sachs Bank USA
  • HSBC Bank USA, N.A.
  • ING Capital LLC
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • Morgan Stanley Bank, N.A.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • The Northern Trust Company
  • U.S. Bank National Association
  • Wells Fargo Bank N.A.

State-owned Banks

  • Royal Bank of Scotland (RBS)

Receiving agencies

Private Sector

  • HESS (NETHERLANDS) OIL AND GAS HOLDINGS C.V.
  • HESS CAPITAL SERVICES LLC
  • Hess Corporation (formerly Amerada Hess)
  • HESS INTERNATIONAL HOLDINGS LIMITED
  • HESS OIL AND GAS HOLDINGS INC.
  • HESS OVERSEAS FINANCE INVESTMENTS CENTRE LIMITED

Loan description

2015 Bank of China contributions to $4 billion USD to Hess Corporation and its subsidiaries for working capital and general corporate purposes

Interest rate (t₀)1.4339%Interest typeVariable Interest RateMaturity5 years

Narrative

Full Description

Project narrative

On January 21, 2015, financial close was reached on a deal in which a syndicate of 24 banks — including Bank of China, New York Branch — entered into a $4,000,000,000 USD syndicated loan agreement with Hess Corporation, a United States-based global independent energy company primarily engaged in exploration and production of crude oil and natural gas, and its subsidiaries Hess Oil and Gas Holdings Inc., Hess International Holdings Limited, Hess Capital Services, LLC, Hess (Netherlands) Oil and Gas Holdings C.V., and Hess Overseas Finance Investments Centre Limited. The maturity of the loan is 5 years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by Hess Corporation and its Borrowing Subsidiaries to meet part of the working capital and general corporate requirements of the Company and its Subsidiaries, for the payment of dividends and distributions by the Company and its Subsidiaries, and for other general corporate purposes. While Bank of China, New York Branch contributed $67,000,000 USD to this loan (Record ID#108114), the following lenders also participated: JPMorgan Chase Bank, N.A. ($285,000,000 USD), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($285,000,000 USD), The Royal Bank of Scotland plc ($285,000,000 USD), Goldman Sachs Bank USA ($285,000,000 USD), Morgan Stanley Bank, N.A. ($285,000,000 USD), Bank of America, N.A. ($190,000,000 USD), The Bank of Nova Scotia ($190,000,000 USD), BNP Paribas ($190,000,000 USD), Citibank, N.A. ($190,000,000 USD), DNB Capital LLC ($190,000,000 USD), HSBC Bank USA, N.A. ($190,000,000 USD), Sumitomo Mitsui Banking Corporation ($190,000,000 USD), Wells Fargo Bank, National Association ($190,000,000 USD), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($120,000,000 USD), Credit Agricole Corporate and Investment Bank ($120,000,000 USD), ING Capital LLC ($120,000,000 USD), Intesa Sanpaolo S.p.A. ($120,000,000 USD), Mizuho Bank, Ltd. ($120,000,000 USD), Standard Chartered Bank ($120,000,000 USD), Branch Banking and Trust Company ($67,000,000 USD), Commerzbank AG, New York and Grand Cayman Branches ($67,000,000 USD), The Northern Trust Company ($67,000,000 USD), and U.S. Bank National Association ($67,000,000 USD). On December 1, 2017, financial close was reached on a deal in which a syndicate of 23 banks — including Bank of China, New York Branch — entered into a $3,700,000,000 USD syndicated loan agreement with Hess Corporation, a United States-based global independent energy company primarily engaged in exploration and production of crude oil and natural gas. The maturity of the loan is 3 years and 1 month, with a final maturity date of January 21, 2021; the interest rate is LIBOR plus an applicable margin. The proceeds were used by Hess Corporation and its Borrowing Subsidiaries to meet part of the working capital and general corporate requirements of the Company and its Subsidiaries, for the payment of dividends and distributions by the Company and its Subsidiaries, and for other general corporate purposes. While Bank of China, New York Branch contributed $65,000,000 USD to this loan (Record ID#108115), the following lenders also participated: JPMorgan Chase Bank, N.A. ($277,000,000 USD), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($277,000,000 USD), Mizuho Bank, Ltd. ($277,000,000 USD), Goldman Sachs Bank USA ($277,000,000 USD), Morgan Stanley Bank, N.A. ($175,000,000 USD), Morgan Stanley Senior Funding, Inc. ($102,000,000 USD), BNP Paribas ($185,000,000 USD), Citibank, N.A. ($185,000,000 USD), DNB Capital LLC ($185,000,000 USD), HSBC Bank USA, N.A. ($185,000,000 USD), Sumitomo Mitsui Banking Corporation ($185,000,000 USD), Toronto-Dominion Bank, New York Branch ($185,000,000 USD), The Bank of Nova Scotia ($185,000,000 USD), Wells Fargo Bank, National Association ($185,000,000 USD), ABN Amro Capital USA LLC ($115,000,000 USD), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($115,000,000 USD), Credit Agricole Corporate and Investment Bank ($115,000,000 USD), ING Capital LLC ($115,000,000 USD), U.S. Bank, N.A. ($115,000,000 USD), Branch Banking and Trust Company ($65,000,000 USD), Standard Chartered Bank ($65,000,000 USD), and The Northern Trust Company ($65,000,000 USD). On April 18, 2019, financial close was reached on a deal in which a syndicate of 22 banks — including Bank of China, New York Branch — entered into a $3,500,000,000 USD syndicated loan agreement with Hess Corporation, a United States-based global independent energy company primarily engaged in exploration and production of crude oil and natural gas. The maturity of the loan is approximately 4 years and 1 month, with a final maturity date of May 15, 2023; the interest rate is LIBOR plus an applicable margin. The proceeds were used by Hess Corporation and its Borrowing Subsidiaries to meet part of the working capital and general corporate requirements of the Company and its Subsidiaries, for the payment of dividends and distributions by the Company and its Subsidiaries, and for other general corporate purposes. While Bank of China, New York Branch contributed $64,000,000 USD to this loan (Record ID#108116), the following lenders also participated: JPMorgan Chase Bank, N.A. ($274,000,000 USD), Mizuho Bank, Ltd. ($274,000,000 USD), MUFG Bank, Ltd. ($274,000,000 USD), Goldman Sachs Bank USA ($274,000,000 USD), Morgan Stanley Bank, N.A. ($205,000,000 USD), Morgan Stanley Senior Funding, Inc. ($69,000,000 USD), BMO Harris Bank N.A. ($176,000,000 USD), BNP Paribas ($176,000,000 USD), Citibank, N.A. ($176,000,000 USD), Sumitomo Mitsui Banking Corporation ($176,000,000 USD), The Bank of Nova Scotia, Houston Branch ($176,000,000 USD), The Toronto-Dominion Bank, New York Branch ($176,000,000 USD), Wells Fargo Bank, N.A. ($176,000,000 USD), ABN Amro Capital USA LLC ($110,000,000 USD), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($110,000,000 USD), Branch Banking & Trust Company ($110,000,000 USD), Credit Agricole Corporate and Investment Bank ($110,000,000 USD), DNB Capital LLC ($110,000,000 USD), Standard Chartered Bank ($110,000,000 USD), U.S. Bank National Association ($110,000,000 USD), and The Northern Trust Company ($64,000,000 USD). On April 13, 2021, financial close was reached on a deal in which a syndicate of 21 banks — including Bank of China, New York Branch — entered into a $3,500,000,000 USD syndicated loan agreement with Hess Corporation, a United States-based global independent energy company primarily engaged in exploration and production of crude oil and natural gas, and its subsidiary Hess Overseas Finance Investments Centre Limited. The maturity of the loan is just over 3 years, with a final maturity date of May 15, 2024; the interest rate is LIBOR plus an applicable margin. The proceeds were used by Hess Corporation and its Borrowing Subsidiaries to meet part of the working capital and general corporate requirements of the Company and its Subsidiaries, for the payment of dividends and distributions by the Company and its Subsidiaries, and for other general corporate purposes. While Bank of China, New York Branch contributed $62,000,000 USD to this loan (Record ID#108117), the following lenders also participated: JPMorgan Chase Bank, N.A. ($265,000,000 USD), Citibank, N.A. ($265,000,000 USD), Mizuho Bank, Ltd. ($265,000,000 USD), MUFG Bank, Ltd. ($265,000,000 USD), Sumitomo Mitsui Banking Corporation ($265,000,000 USD), Goldman Sachs Bank USA ($265,000,000 USD), Morgan Stanley Senior Funding, Inc. ($60,000,000 USD), Morgan Stanley Bank, N.A. ($205,000,000 USD), BNP Paribas ($166,000,000 USD), DNB Capital LLC ($166,000,000 USD), The Bank of Nova Scotia, Houston Branch ($166,000,000 USD), The Toronto-Dominion Bank, New York Branch ($166,000,000 USD), Truist Bank ($166,000,000 USD), Wells Fargo Bank, N.A. ($166,000,000 USD), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($105,000,000 USD), Bank of America, N.A. ($105,000,000 USD), Credit Agricole Corporate and Investment Bank ($105,000,000 USD), Standard Chartered Bank ($105,000,000 USD), U.S. Bank National Association ($105,000,000 USD), and The Northern Trust Company ($62,000,000 USD). On July 14, 2022, financial close was reached on a deal in which a syndicate of 20 banks — including Bank of China, New York Branch — entered into a $3,250,000,000 USD syndicated loan agreement with Hess Corporation, a United States-based global independent energy company primarily engaged in exploration and production of crude oil and natural gas, and its subsidiary Hess Overseas Finance Investments Centre Limited. The maturity of the loan is 5 years, and the interest rate is LIBOR plus an applicable margin. The proceeds were used by Hess Corporation and its Borrowing Subsidiaries to meet part of the working capital and general corporate requirements of the Company and its Subsidiaries, for the payment of dividends and distributions by the Company and its Subsidiaries, and for other general corporate purposes. While Bank of China, New York Branch contributed $62,000,000 USD to this loan (Record ID#108118), the following lenders also participated: JPMorgan Chase Bank, N.A. ($265,000,000 USD), MUFG Bank, Ltd. ($265,000,000 USD), Mizuho Bank, Ltd. ($265,000,000 USD), Citibank, N.A. ($265,000,000 USD), Sumitomo Mitsui Banking Corporation ($265,000,000 USD), Goldman Sachs Bank USA ($265,000,000 USD), Morgan Stanley Senior Funding, Inc. ($60,000,000 USD), Morgan Stanley Bank, N.A. ($205,000,000 USD), DNB Capital LLC ($165,000,000 USD), The Bank of Nova Scotia, Houston Branch ($165,000,000 USD), The Toronto-Dominion Bank, New York Branch ($165,000,000 USD), Truist Bank ($165,000,000 USD), Wells Fargo Bank, National Association ($165,000,000 USD), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($104,000,000 USD), Bank of America, N.A. ($104,000,000 USD), Standard Chartered Bank ($104,000,000 USD), U.S. Bank National Association ($104,000,000 USD), The Northern Trust Company ($62,000,000 USD), and Arvest Bank ($30,000,000 USD).

Staff comments

1. The entirety of the loan contract can be accessed at https://investors.hess.com/node/20811/html. The dropbox link is available here: https://www.dropbox.com/scl/fi/xmbbw4xzs3c6utfjgglzx/Source_ID_218297.pdf?rlkey=ixnea2i0rm0kdy504klnmq1qx&st=4yrl7ugo&dl=0 2. Hess Corporation is an American global independent energy company, headquartered in New York City, United States. It is engaged primarily in the exploration and production of crude oil and natural gas. Hess has operations in North Dakota’s Bakken shale, the Gulf of Mexico, and several international offshore fields. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in January 2015 and an applicable margin based on credit ratings. At the time, Hess Corporation’s credit rating was BBB (1.075%).