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Overview

China Construction Bank commits $9 million USD to a $100 million USD syndicated loan to Lotte Shopping for unspecified purposes

Commitments (Constant USD, 2023)$18,933,627
Commitment Year•2004Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•KoreaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 4, 2004
Last repayment (originally scheduled)
Jun 4, 2007

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

  • KB Kookmin Bank
  • Standard Chartered Bank PLC

Receiving agencies

Private Sector

  • Lotte Shopping Co., Ltd.

Loan description

China Construction Bank contributes to a USD $100 million syndicated loan to Lotte Shopping in South Korea for unspecified purposes in 2004

Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

Circa June 4, 2004, financial close was reached on a deal in which a syndicate of around four banks — including the Seoul Branch of China Construction Bank (CCB) — entered into a $100 million USD syndicated loan agreement with Lotte Shopping Co., Ltd. — a distribution and department store unit of Lotte Group, is a multinational retailer headquartered in Seoul, South Korea — for unspecified purposes. This loan carried a maturity period of three years, a variable interest rate, and was divided into two tranches: a loan-style floating-rate note (FRN) and a term loan, with tranches to be decided upon syndication4. Kookmin Bank and Standard Chartered Bank were the lead banks. In syndication, an unspecified bank verbally committed for $25 million USD in sub-underwriting while the Seoul Branch of China Construction Bank committed $9 million USD. Financial close was scheduled for June 4, 2004, and the loan was indeed closed in June 2004. Circa June 2008, Lotte was seeking to refinance the loan.

Staff comments

1. FRNs are not considered financial flows by AidData. It is unclear whether CCB's $9 million USD commitment included financing to the FRN portion, and since the term loan-tranche breakdown is entirely unknown, no estimation can be made. Therefore, AidData has elected to code $9 million USD as the commitment, treating it as having gone fully to the term loan until new information can be found. This issue merits further investigation.