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Overview

ICBC (Asia) contributes to $79 million USD junior facility of $397.4 million USD syndicated loan facility to SK Shipping for LNG ship refinancing purposes (Linked to Record ID#109090)

Commitments (Constant USD, 2023)$29,648,954
Commitment Year•2006Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2006
Last repayment (originally scheduled)
Aug 28, 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

  • Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia))

Cofinancing agencies

Private Sector

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • BNP Paribas S.A.
  • DNB Bank ASA (formerly DnB NOR ASA)
  • Korea Exchange Bank (KEB)
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Korea Development Bank (KDB)

Receiving agencies

Private Sector

  • SK Shipping Co, Ltd.

Loan description

ICBC (Asia) contributes to both tranches of USD $397.4 million syndicated loan facility to SK Shipping for LNG ship refinancing purposes in South Korea in 2006

Interest rate (t₀)•6.07%Interest type•Variable Interest RateMaturity•14 years

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.