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Overview

China Construction Bank provides $10 million USD to a $72 million USD dual tranche loan to E-Land World for refinancing and working capital purposes

Commitments (Constant USD, 2023)$20,043,305
Commitment Year•2005Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2005

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

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Hana Bank Co., Ltd. (formerly KEB Hana Bank)
  • KB Kookmin Bank
  • Mitsubishi Securities Co., Ltd. (pre-October 2005)

Receiving agencies

Private Sector

  • E-Land World Co., Ltd.

Loan description

China Construction Bank contributes to a USD $72 million dual tranche loan to South Korean fashion company E-Land World for refinancing and working capital purposes in 2005

Interest rate (t₀)•5.47625%Interest type•Variable Interest RateLoan tenor•1-month rate

Narrative

Full Description

Project narrative

On September 1, 2005, a syndicate of four lenders — China Construction Bank (CCB), Kookmin Bank, Hana Bank, and Mitsubishi Securities — entered into a $72 million USD dual tranche loan agreement with E-Land World Co., Ltd. — the fashion and apparel arm of the South Korean conglomerate E-Land Group, which has businesses in the fashion, construction, retail, and dining industries — for refinancing and working capital purposes. The facility was divided into two tranches: a $42 million asset-backed (collateralized) loan tranche, priced at 151 basis points (bps) over a one-month LIBOR rate, as well as a $30 million USD asset-backed security tranche priced at 201 bps over a one-month LIBOR. CCB contributed $10 million USD and acted as a lead manager on the facility. Additionally, Kookmin Bank contributed $36 million USD and acted as mandated lead arranger, Hana Bank committed $20 million USD and acted as a lead manager, and Mitsubishi Securities (pre-merger) provided $6 million USD and also acted as a lead manager on the loan. The proceeds of the loan were to be used for working capital purposes and to refinance existing debt.

Staff comments

1. The exact contributions of each lender to each tranche is unknown. AidData has assumed that each lender, including CCB, contributed equally to both tranches. Therefore, AidData has estimated the interest rate by taking the average of the interest rates of both tranches ([151 bps + 201 bps] / 2 = 176 bps). 2. E-Land World Co., Ltd. is the fashion and apparel arm of the South Korean conglomerate, E-Land Group, which has businesses in the fashion, construction, retail, and dining industries. E-Land World distributes its products under several popular brand names, including: New Balance, OST, Little Brenn, Deco, and BodyPop.