Skip to content
AidData logo

Overview

Bank of China contributes $10 million USD to a $250 million USD term of a $600 million USD syndicated facility to LG Display for capital expenditure and working capital purposes

Commitments (Constant USD, 2023)$12,861,385
Commitment Year•2010Country of Activity•KoreaDirect Recipient Country of Incorporation•KoreaOverseas Jurisdiction•KoreaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 3, 2010
Last repayment (originally scheduled)
Jun 2, 2013

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BofA Securities, Inc. (Formerly Bank of America Merrill Lynch (BAML))
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Korea Development Bank (KDB)
  • Korea Finance Corporation (KoFC)

Receiving agencies

Private Sector

  • LG Display Co., Ltd. (formerly LG.Philips LCD Co., Ltd.)

Loan description

Bank of China contributes to a USD $250 million term loan of a USD $600 million syndicated facility to LG Display in South Korea for capital expenditure and working capital purposes in 2010

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

Between May 28 and June 3, 2010, a syndicate of 15 banks — including the Seoul Branch of the Bank of China (BOC) — entered into a $600 million USD syndicated debt facility agreement with LG Display Co., Ltd. — a South Korea-incorporated transistor liquid crystal display (TFT-LCD) manufacturer headquartered in Seoul listed on the Korea Exchange and New York Stock Exchange with LG Electronics Inc. (37.9% stake) as its largest shareholder — for capital expenditure and working capital purposes. The facility carried a maturity period of three years and was divided into a $250 million USD onshore term loan tranche and a $350 million USD offshore loan-style floating-rate note (FRN). The proceeds were to be used by the borrower for capital expenditure and working capital purposes. General syndication closed the week of May 28 to June 3, 2010. The Seoul Branch of BOC contributed $10 million USD to the $250 million USD term loan tranche. In addition to BOC, the following lenders contributed the respective amounts to the tranche: Mizuho Corporate Bank, Ltd. (MHCB) ($50 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($50 million USD), Korea Development Bank (KDB) ($50 million USD), Korea Finance Corporation (KoFC) ($50 million USD), and Bank of America Merrill Lynch (BAML) ($40 million USD). KDB, KoFC, MHCB, SMBC, and BAML served as bookrunners. The Seoul Branch of BOC joined in general syndication as a lead arranger. The $350 million USD FRN tranche was provided by the following lenders: Australia and New Zealand Banking Group ($50 million USD), Credit Agricole ($50 million USD), DBS Bank ($50 million USD), HSBC ($50 million USD), Standard Chartered Bank ($50 million USD), BNP Paribas S.A. ($40 million USD), the Bank of Nova Scotia (Scotiabank) ($30 million USD), KDB ($20 million USD), and Shanghai Commercial & Savings Bank (SCSB) ($10 million USD). ANZ, Crédit Agricole, DBS Bank, HSBC, Standard Chartered Bank, BNP Paribas, Scotiabank, and KDB served as bookrunners. SCSB joined in general syndication as a lead arranger.

Staff comments

1. AidData does not consider floating rate notes, as bonds, to be financial flows. Therefore, it has not included the participants solely in the FRN tranche to be cofinanciers.