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Overview

ICBC (Asia) contributes $5 million USD to a $50 million USD syndicated loan to Samsung Asia for refinancing purposes

Commitments (Constant USD, 2023)$9,382,580
Commitment Year•2006Country of Activity•SingaporeDirect Recipient Country of Incorporation•SingaporeOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 6, 2006
Last repayment (originally scheduled)
Mar 5, 2009

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 (Asia) Limited (ICBC (Asia))

Cofinancing agencies

Private Sector

  • First Commercial Bank Limited
  • Hana Bank Co., Ltd. (formerly KEB Hana Bank)
  • Korea Exchange Bank (KEB)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Sanpaolo IMI S.p.A.
  • Standard Chartered Bank PLC

State-owned Banks

  • Export-Import Bank of Korea (KEXIM)

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)

Receiving agencies

Private Sector

  • Samsung Asia Pte. Ltd. (SAPL)

Guarantors

Private Sector

  • Samsung Corporation

Loan description

March 2006 USD 50 million syndicated loan to Samsung Asia for refinancing purposes

Interest rate (t₀)•5.435%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On March 6, 2006, a syndicate of nine banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) and the Bank of Communications (BoComm) — signed a $50 million USD syndicated loan agreement with Samsung Asia Pte. Ltd. (SAPL) — a Singapore-incorporated electronic goods seller and Samsung's Southeast Asia headquarters jointly owned by Samsung Electronics Co., Ltd. (SEC), the South Korean semiconductor company listed on the Korea Stock Exchange (70.00% equity stake) and Samsung Corporation, a South Korean privately-held multinational manufacturing conglomerate (chaebol) headquartered in Seoul (30.00% equity stake) — for refinancing purposes. This loan carried a maturity period of three years and an interest rate based on a variable rate based on LIBOR plus a margin of 42.5 basis points (bps). Samsung Electronics issued a guarantee for the loan. The loan carried a financial covenant stipulating that Samsung Electronics would own a minimum of 30% in the borrower over the life of the loan. The proceeds were to be used by the borrower to repay an existing $50 million USD credit signed in 2003 due in March 2006. ICBC (Asia) contributed $5 million USD. BoComm contributed $3.5 million USD. Record ID#108654 captures ICBC (Asia)'s contribution. Record ID#108656 captures BoComm's contribution. In addition to ICBC (Asia) and BoComm, the following lenders contributed the respective amounts to the loan syndicate: Standard Chartered Bank plc ($7 million USD), Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($7 million USD), Export-Import Bank of Korea (KEXIM) ($7 million USD), Hana Bank ($7 million USD), the Singapore Branch of Korea Exchange Bank (KEB) ($7 million USD), Sanpaolo IMI S.p.A. ($3.5 million USD), and First Commercial Bank Limited ($3 million USD). Standard Chartered Bank served as the sole original mandated lead arranger. BTMU, KEXIM, Hana Bank, and KEB joined as mandated lead arrangers. ICBC, BoComm, Sanpaolo IMI, and First Commercial Bank joined as arrangers. The loan was oversubscribed in syndication but not increased. The loan offered an all-in fee of 55 bps to top-level lead arrangers.