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Overview

China Bank of Communications contributes to $100 million USD loan to El Paso Electric Company for general corporate purposes in 2002 (Linked to Record ID#110686)

Commitments (Constant USD, 2023)$32,979,790
Commitment Year2002Country of ActivityUnited StatesDirect Recipient Country of IncorporationUnited StatesOverseas JurisdictionUnited StatesSectorEnergyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 28, 2002
Last repayment (originally scheduled)
Jan 27, 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 Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Private Sector

  • Bank Hapoalim B.M.
  • Barclays Bank PLC
  • Guaranty Federal (now acquired by QCR Holdings)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • MUFG Union Bank, N.A. (formerly Union Bank of California, N.A.)
  • Norinchukin Bank (Nochu Bank)

Receiving agencies

Private Sector

  • El Paso Electric Company

Loan description

BoComm contributes to $100 million USD loan to El Paso Electric Company for general corporate purposes in 2002

Interest rate (t₀)3.3975%Interest typeVariable Interest RateMaturity3 years

Narrative

Full Description

Project narrative

On January 28, 2002, financial close was reached on a deal in which a syndicate of 7 banks — including Bank of Communications — entered into a $100,000,000 USD syndicated loan agreement with El Paso Electric Company, a U.S.-based public utility that generates, transmits, and distributes electricity in west Texas and southern New Mexico. The maturity of the loan is 3 years, and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. While Bank of Communications contributed to this loan (Record ID#110685), the following lenders also participated: Morgan Chase Bank, Union Bank of California, Barclays Bank PLC, Guaranty Federal, The Norinchukin Bank, and Bank Hapoalim B.M. On December 17, 2004, financial close was reached on a deal in which a syndicate of 6 banks — including Bank of Communications — entered into a $100,000,000 USD syndicated loan agreement with El Paso Electric Company. The maturity of the loan is 3 years, and the interest rate was LIBOR plus an applicable margin. The use of proceeds was for general corporate purposes. While Bank of Communications contributed to this loan (Record ID#110686), the following lenders also participated: JPMorgan Chase Bank, N.A. (individually and as Administrative Agent, Collateral Agent, and Issuing Bank), Union Bank of California, The Bank of New York, The Norinchukin Bank, and Bank Hapoalim B.M.

Staff comments

1. The entirety of the loan contract can be accessed at https://content.edgar-online.com/ExternalLink/EDGAR/0000930661-02-000901.html?hash=fc13e7b6296d27ef83599741dfac466f9f5cc74b522256fd3b1b966ef9bf3ba2&dest=DEX9905_HTM#DEX9905_HTM 2. El Paso Electric Company is an investor-owned electric utility headquartered in El Paso, Texas. It serves approximately 460,000 customers in west Texas and southern New Mexico, operating natural gas, nuclear, and solar generating facilities. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in January 2002 and an applicable margin based on credit ratings (BBB- or 1.375%) 4. The individual contributions of the 7 lenders to this $100,000,000 USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Bank of Communications by assuming that each lender contributed an equal amount ($14,285,714.29 USD) to the loan syndicate.