CDB contributes $589 million to $1.5 billion syndicated loan to PDVSA for general corporate purposes (Linked to Record ID#92447 and ID#92450)

Project narrative

On April 23, 2010, PDVSA signed $1.5 billion from term loan facility agreement (or ‘trade related term loan facility agreement’) for general corporate purposes with a syndicate of 19 banks, including the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), China Development Bank (CDB), and Portugal's Banco Espiritu Santo (BES). CDB contributed $589 million to the loan syndicate (captured via Record ID#37819). ICBC’s estimated contribution to the loan syndicate is $50,611,111.11 (captured via Record ID#92450). China Construction Bank’s estimated contribution to the loan syndicate is $50,611,111.11 (captured via Record ID#92447). The 3-year term loan facility bore an interest rate of LIBOR plus a 4.5% margin and was payable on April 2013. It also came with a 9 month (0.75 year) grace period. Interest will be accrued and paid on the last business day of each quarter. The facility was to be repaid in nine equal quarterly amounts starting on the last business day of the 12th month following the execution date of the facility agreement and on the last business day of each successive quarter thereafter. Payments were to be made from a debt service reserve account (DSRA). Fees on the unused commitments accrued annually at a 2.0% rate. Under the terms and conditions of this facility, PDVSA was also subject to certain restrictive covenants, including an obligation to maintain certain financial ratios. The borrower initially drew down on the loan in July 2010. The loan was fully repaid by PDVSA.