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Overview

ICBC contributes to a $397 million USD syndicated term loan to Optima Leasing for refinancing purposes (linked to Record ID#109726)

Commitments (Constant USD, 2023)$74,497,689
Commitment Year•2006Country of Activity•KoreaDirect Recipient Country of Incorporation•PanamaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 25, 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

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

State-owned Banks

  • Korea Development Bank (KDB)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Optima Leasing S.A.

Loan description

ICBC and BOC contributions to a USD $397 million syndicated term loan to Optima Leasing for refinancing purposes in South Korea in 2006

Interest type•UnknownMaturity•14 years

Narrative

Full Description

Project narrative

On September 25, 2006, a syndicate of nine lenders — including the Bank of China (BOC) and the Industrial & Commercial Bank of China (ICBC) — entered into a $397 million USD term loan agreement with Optima Leasing S.A. — a Panama-incorporated, Korea-headquartered, wholly-owned subsidiary of SK Shipping — for refinancing purposes. The facility carried a maturity period of 14 years. BOC's contribution is captured by Record ID#109726 and ICBC's contribution is captured by Record ID#109767. BOC and ICBC acted as co-arrangers. The following lenders also played the following roles on the syndicate: BNP Paribas (mandated arranger), Korean Development Bank (KDB) (mandated arranger), Sumitomo Mitsui Banking Corporation (SMBC) (mandated arranger), Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) (now MUFG Bank, Ltd. ) (co-arranger), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) (co-arranger), DnB NOR ASA (now DNB Bank ASA) (co-arranger), and Korea Exchange Bank (KEB) (co-arranger). The proceeds of the loan would be used to refinance the company's existing debt.

Staff comments

1. The contributions of each of the 10 lenders to the $397 million USD term loan is unknown. To estimate BOC's and ICBC's contributions, AidData has assumed that each of the 10 lenders contributed equally ($397,000,000 / 10 = $39,700,000) to the loan. This issue merits further investigation. 2. Optima Leasing owns SK Splendor, an LNG carrier that was constructed in 2000; it is possible that this loan refinances debt associated with the gas carrier.