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Overview

ICBC (Asia) contributes $6 million USD to the $50 million USD three-year tranche of a $100 million USD syndicated loan to LG Electronics for refinancing purposes

Commitments (Constant USD, 2023)$13,500,210
Commitment Year•2003Country 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
Aug 21, 2003
Last repayment (originally scheduled)
Aug 20, 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 (Asia) Limited (ICBC (Asia))

Cofinancing agencies

Private Sector

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Bank of Nova Scotia (Scotiabank)
  • Bank One, N.A. (later merged with JPMorgan Chase)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • KB Kookmin Bank
  • National Agricultural Cooperative Federation (NH) (NACF)
  • Sabanci Bank PLC
  • Sanpaolo IMI S.p.A.
  • Siam Commercial Bank
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • The Shanghai Commercial & Savings Bank, Ltd. (SCSB)
  • The Yamaguchi Bank, Ltd.

State-owned Banks

  • KEXIM Bank UK Limited

State-owned companies

  • Export Development Canada (EDC)

Receiving agencies

Private Sector

  • LG Electronics Inc.

Loan description

August 2003 $100 million USD syndicated loan to LG Electronics for refinancing purposes in South Korea

Interest rate (t₀)•2.44%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On August 21, 2003, a syndicate of 15 banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — signed a $100 million USD syndicated multi-tranche agreement with LG Electronics Inc. — a South Korean multinational major appliance and consumer electronics corporation headquartered in Yeouido-dong, Seoul listed on the Korea Exchange but part of LG Corporation (it and its affiliates holding 32.1% in 2003) — for refinancing purposes. The loan was divided into two tranches: a $50 million USD tranche with a maturity period of one year and an interest rate of LIBOR plus a margin of 70 basis points (bps) and a $50 million USD tranche with a maturity period of three years and an interest rate of LIBOR plus a margin of 125 bps. Both tranches included floating rate note (FRN) and term loan portions. The proceeds were to be used by the borrower to refinance a $100 million USD term arranged by Deutsche Bank in 2000. ICBC (Asia) contributed $1.5 million USD to the $50 million USD one-year tranche, as captured by Record ID#110207. In addition to ICBC (Asia), the following lenders contributed to the respective amounts to the loan syndicate: Commonwealth Bank of Australia (CBA) ($3 million USD), Kookmin Bank ($3 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($3 million USD), Bank One, N.A. ($1.5 million USD), Bank of Nova Scotia (Scotiabank) ($1.5 million USD), Export Development Canada (EDC) ($1.5 million USD), National Agricultural Cooperative Federation (NACF) ($7 million USD), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) ($5 million USD), Sabanci Bank PLC ($5 million USD), Sanpaolo IMI S.p.A. ($5 million USD), Siam Commercial Bank ($5 million USD), The Yamaguchi Bank Co., Ltd. ($5 million USD), and The Shanghai Commercial & Savings Bank, Ltd. (SCSB) ($3 million USD). ICBC (Asia) contributed $6 million USD to the $50 million USD three-year tranche, as captured by Record ID#110208. In addition to ICBC (Asia), the following lenders contributed to the respective amounts to the loan syndicate: CBA ($7 million USD), Kookmin Bank ($7 million USD), SMBC ($7 million USD), Bank One ($6 million USD), Scotiabank ($6 million USD), EDC ($6 million USD), and KEXIM Bank UK Limited ($5 million USD). CBA, Kookmin Bank, and SMBC served as coordinating arrangers. ICBC (Asia), Bank One, Scotiabank, and EDC joined in syndication as arrangers. NACF joined in syndication as lead manager. BBVA, Sabanci Bank, Sanpaolo IMI, Siam Commercial Bank, and Yamaguchi Bank joined in syndication as co-lead managers. SCSB joined in syndication as senior manager. Syndication began in July 2003.

Staff comments

1. As allocations were finalized and the scheduled signing was only three days away and there is no indication it was not signed, AidData has coded August 21, 2003 as the commitment date. 2. AidData does not consider floating rate notes, as bonds, to be financial flows. However, as it is entirely unclear how much the FRN portion was and if ICBC (Asia) contributed to it, AidData has proceeded with the simple commitment amount of ICBC (Asia). Still, this issue merits further investigation.