Skip to content
AidData logo

Overview

ICBC contributes $8.8 million USD to a $164.1 million USD syndicated loan to Hanjin Shipping for ship acquisition purposes (Linked to RecordID#109363)

Commitments (Constant USD, 2023)$16,513,342
Commitment Year•2006Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 23, 2006

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

  • BNP Paribas S.A.
  • Crédit Industriel et Commercial (CIC)
  • DNB Bank ASA (formerly DnB NOR ASA)
  • Fortis Bank
  • ING Bank N.V.
  • Korea Exchange Bank (KEB)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Sumitomo Trust & Banking Co

State-owned Banks

  • Woori Bank Co., Ltd.

Receiving agencies

Private Sector

  • Hanjin Shipping Co., Ltd. (한진해운)

Loan description

ICBC contributes to a USD $164.1 million syndicated loan to Hanjin Shipping for ship acquisition purposes in South Korea in 2006

Interest rate (t₀)•5.08%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

In early January 2006, syndication closed on a loan in which a syndicate of ten banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $164.1 million USD syndicated pre-delivery loan agreement with Hanjin Shipping — a Korea-based container shipping and logistics company — for ship acquisition financing purposes. The syndicated debt financing included a $164.1 million USD loan prior to the delivery of the new ships, a pre-delivery loan, which would step up to a $205 million USD term loan after the vessels were delivered in 2008. The pre-delivery loan carried an interest rate of 35 basis points (bps) over LIBOR, with plans to step up to 70 bps over LIBOR for the subsequent term loan. Signing was set to take place on January 23, 2006. RecordID#109296 captures ICBC's contribution $8.8 million USD to the initial $164.1 million USD pre-delivery facility. ICBC also acted as an arranger on the loan. The following lenders played the following roles and contributed the following amounts to the $164.1 million USD pre-delivery loan: BNP Paribas SA (mandated lead arranger, $20 million USD), ING Bank NV (mandated lead arranger, $20 million USD), Sumitomo Mitsui Banking Corporation (SMBC) (mandated lead arranger, $20 million USD), DnB NOR Bank (lead arranger, $23.2 million USD), Fortis Bank (lead arranger, $23.2 million USD), Woori Bank (lead arranger, $23.2 million USD), Credit Industriel et Commercial (CIC) (arranger, $10.4 million USD), Sumitomo Trust & Banking (arranger, $8.8 million USD), and Korea Exchange Bank (KEB) (lead manager, $6.4 million USD). RecordID#109363 captures ICBC's pledged $11 million USD contribution to the later $205 million USD term loan. The following lenders also pledged the following amounts to the $205 million USD term loan following the delivery of the assets: BNP Paribas SA ($25 million USD), ING Bank NV ($25 million USD), SMBC ($25 million USD), DnB NOR Bank ($29 million USD), Fortis Bank ($29 million USD), Woori Bank ($29 million USD), CIC ($13 million USD), Sumitomo Trust & Banking ($11 million USD), and KEB ($8 million USD). The proceeds of the loan would be used to finance the the acquisition of four new container ships.