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

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 ICBC, China Construction Bank, China Development Bank and Portugal's Banco Espiritu Santo (BES). CDB contributed $589 million to the loan syndicate (captured via Project ID#37819). ICBC’s estimated contribution to the loan syndicate is $50,611,111.11 (captured via Project ID#92450). China Construction Bank’s estimated contribution to the loan syndicate is $50,611,111.11 (captured via Project 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. 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.

Additional details

1. Sources differ on the precise official commitment (loan agreement signing) date. It is reported as either April 23, 2010 and June 25, 2010. 2. The all-in interest rate (5.252%) was calculated by taking the average 6-month LIBOR rate in June 2010 (0.752%) and adding a 4.5% margin. 3. The size of the contributions from ICBC and China Construction Bank are unknown. However, it is known that CDB contributed $589 million to the loan syndicate and there were 18 additional members of the syndicate. Therefore, AidData has estimated ICBC and China Construction Bank’s respective contributions ($50,611,111.11) by dividing $911 million by 18.

Number of official sources

10

Number of total sources

17