ICBC provides loan worth 1.2 billion Indian rupees (ICBC Facility II) to help Reliance Tech Services Limited repay short-terms loans (linked to Project ID#56456)
Commitment amount
$ 21768426.0427513
Adjusted commitment amount
$ 21768426.04
Constant 2021 USD
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
India
Sector
Action relating to debt (Code: 600)
Flow type
Loan
Level of public liability
Private debt
Financial distress
Yes
Infrastructure
No
Category
Project lifecycle
Description
On July 21, 2014, the Industrial & Commercial Bank of China (ICBC) provides 1.2 billion Indian rupee working capital loan to Reliance Tech Services Limited, a subsidiary of Reliance Communications. Most of the loan proceeds were to be used to repay Reliance's short-term loans. Reliance Communications guaranteed the loan. The loan carried the following terms: 10 year maturity and an interest rate of LIBOR plus a 1.25% margin. In February 2019, Reliance Communications filed for bankruptcy as it was unable to sell assets to repay its debts. Many creditors are now suing the Reliance Communications to recover unpaid debts. This project is linked to ICBC and Exim's 2012 $925.2 million USD loan for the construction of ICBC Facility I (#56456).
Additional details
1. AidData has calculated the all-in interest rate (1.578%) by adding 1.25% to average 6-month LIBOR (0.328%) in the month when the loan agreement was signed (July 2014).
Number of official sources
3
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
Reliance Tech Services Limited [Private Sector]
Implementing agencies [Type]
Reliance Communications Ltd. [Private Sector]
Guarantee provider [Type]
Reliance Communications Ltd. [Private Sector]
Loan Details
Maturity
10 years
Interest rate
1.578%
Grant element (OECD Grant-Equiv)
29.5856%