Narrative
Full Description
Project narrative
In September 2006, a syndicate of nine banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — entered into a to an $397.4 million USD syndicated loan to SK Shipping. Co. Ltd — a Korea-based maritime transport company focusing on chemical transport, oil products, bulk cargo, steel, and liquefied natural gas (LNG) — for LNG ship refinancing purposes. The facility was divided into two tranches: a $318.4 million USD senior tranche and $79 million USD junior facility. The senior facility carried an interest rate of LIBOR plus 44 basis points (bps) and the junior facility carried interest set at 65 bps over LIBOR. The loan was set to mature in 2020. Record ID#109090 captures ICBC Asia's contribution to the $318.4 million USD senior tranche. All nine lenders contributed to the facility. The other lenders and their applicable the roles included: BNP Paribas (mandated lead arranger), Korea Development Bank (KDB) (mandated lead arranger), Sumitomo Mitsui Banking Corporation (SMBC) (mandated lead arranger), Korea Exchange Bank (KEB), Bank of Tokyo-Mitsubishi UFJ (BTMU), DnB NOR Bank, Banco Bilbao Vizcaya Argentaria S.A. (BBVA), and Mizuho Corporate Bank. Record ID#109091 captures ICBC Asia's contribution to the $79 million USD junior facility. In addition to ICBC (Asia), the following lenders contributed to this debt: KDB, KEB, BTMU, and DnB. In total, the lenders contributed the following amounts to the whole facility: ICBC (Asia) ($60 million USD), KDB ($46.5 million USD), KEB ($50 million USD), BTMU ($40 million USD), DnB ($40 million USD), BNP Paribas ($40.5 million USD), Sumitomo Mitsui Banking Corp ($40.4 million USD), BBVA ($45 million USD), and Mizuho Corporate Bank ($35 million USD). The proceeds of the loan facility would be used to refinance two LNG carriers, which were on a long term charter to Korea Gas — South Korean public natural gas enterprise, and the largest natural gas importer in the world.
Staff comments
1. AidData has assumed that each of the 5 lenders on the $79 million USD junior loan contributed equally to the facility ($15.8 million USD). Therefore, AidData has assumed that ICBC (Asia) contributed $44.2 million USD to the senior facility, because industry sources reported their total contribution was $60 million USD to the $397.4 million USD syndicated loan facility.