Overview

ICBC contributes to a ₩800 billion KRW syndicated loan to LG Display for capital expenditures purposes

Commitments (Constant USD, 2023)$182,887,404

Commitment Year•2018Country 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: Sep 21, 2018

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

Nonghyup Bank

State-owned Banks

Export-Import Bank of Korea (KEXIM)
Korea Development Bank (KDB)

Receiving agencies

Private Sector

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

Loan description

ICBC contributes to a KRW ₩800 billion syndicated loan to LG Display in South Korea for capital expenditures purposes in 2018

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 21, 2018, a syndicate of four banks — the Seoul Branch of the Industrial and Commercial Bank of China (ICBC), Export-Import Bank of Korea (KEXIM), Korea Development Bank (KDB), and NH Nonghyup Bank as joint mandated lead arrangers — signed a ₩800 billion KRW ($716 million USD) syndicated loan 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 expenditures purposes. The proceeds were to be used for capital expenditure purposes, including accelerating its product transition from LCD to organic light-emitting diodes (OLED). The loan was the second largest syndicated loan signed in South Korea.

Staff comments

1. The individual contributions of the four lenders to this ₩800 billion KRW syndicated loan are unknown. Therefore, to estimate the contribution of ICBC to the loan syndicate, AidData has assumed that each lender contributed equally (₩200,000,000,000 KRW) to the loan syndicate.