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Overview

ICBC contributes ₩30 billion KRW to ₩480 billion KRW syndicated green to Hyundai Heavy Industries to develop technology for LNG carriers

Commitments (Constant USD, 2023)$26,239,193
Commitment Year•2020Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•KoreaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 29, 2020
Last repayment (originally scheduled)
May 29, 2023

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • HSBC Korea Ltd.

State-owned Banks

  • KDB Capital Corp.
  • Korea Development Bank (KDB)

Receiving agencies

Private Sector

  • HD Hyundai Heavy Industries Co., Ltd. (HHI) (formerly Hyundai Heavy Industries Co., Ltd.)

Loan description

ICBC contributes to KRW ₩480 billion syndicated green loan to Hyundai Heavy Industries to develop technology for LNG carriers in South Korea in 2020

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On May 29, 2020, a syndicate of four lenders — the Seoul Branch of the Industrial and Commercial Bank of China (ICBC), Korea Development Bank (KDB), KDB Capital, and HSBC Korea — signed a ₩480 billion KRW ($388 million USD) syndicated green loan agreement with Hyundai Heavy Industries Co., Ltd. (HHI) — a South Korean shipbuilding (the world's largest) and equipment manufacturing company — to develop technology for liquefied natural gas (LNG) carriers. This loan carried a maturity period of three years. KDB provided ₩350 billion KRW, while ICBC provided ₩30 billion KRW and HSBC and KDB Capital together gave ₩130 billion KRW. ICBC served as a joint lead bank. As a green syndicated loan, this loan included a green finance framework in line with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA) and the Green Loan Principles (GLP) of the Loan Market Association (LMA), with the borrower's performance on environmentally shipbuilding (in line with the 2020 regulations of the International Maritime Organization to reduce sulfide and nitrogen oxide emissions, reduce volatile organic compound emissions, and improve energy utilization, with the borrower's financing costs being impacted based on performance. The proceeds were to be used to support environmentally friendly shipbuilding, namely by funding the development of technologies for LNG carriers. The loan was reportedly the first green syndicated loan for a global shipbuilding company and the first Korean won-denominated green syndicated loan.