ICBC and BNP Paribas provide $201 million syndicated loan to Gerdau Açominas for purchase of steel mill equipment
Commitment amount
$ 218108451.636222
Adjusted commitment amount
$ 218108451.64
Constant 2021 USD
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
Brazil
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Description
On October 14, 2005, the Industrial and Commerical Bank of China (ICBC) and BNP Paribas lent Brazilian company Gerdau Açominas $201 million in export buyer's credits to buy steel mill equipment from the China Minmetals Corporation and China Metallurgical Construction Group. Purchases made through the export credit framework was insured by Sinosure. Both banks provided 50% of the credit at an annual interest rate of LIBOR plus 0.675% with a 12 year maturity. According to an SEC filing, the borrower was expected to use the loan proceeds to finance 85% of the cost of commercial contracts signed between Gerdau Açominas and equipment suppliers. The remaining 15% was to be negotiated between BNP Paribas and Gerdau Acominas.
Additional details
Number of official sources
4
Number of total sources
9
Details
Cofinanced
Yes
Cofinancing agencies [Type]
BNP Paribas S.A. [Private Sector]
Direct receiving agencies [Type]
Gerdau Açominas S.A. [Private Sector]
Implementing agencies [Type]
China Metallurgical Group Corporation [State-owned Company]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
12 years
Interest rate
5.952%
Grace period
0 years
Grant element (OECD Grant-Equiv)
15.6735%