Narrative
Full Description
Project narrative
In 2017, Bank of China, Banco de Oro (BDO), and Philippine National Bank (PNB) signed a 10-year $690 million syndicated loan agreement with Clark Global City Corporation — a special purpose vehicle and subsidiary of Udenna Corporation — for the acquisition of shares in Global Gateway Development Corporation (GGDC) and the development of Clark Global City (formerly the Global Gateway Logistics City). Clark Global City is a planned mixed-use central business district development at the Clark Freeport Zone in Mabalacat, Pampanga, Philippines. The loan carried a ten-year maturity and an interest rate of between 7.61 percent and 8.98 percent. In 2017, the land was acquired by Udenna from GGDC with the proceeds of the loan. The acquisition of GGDC’s ownership stake in the Clark Global City Project was approved by the Philippine Competition Commission (PCC) on October 19, 2017, and the acquisition was completed on November 14, 2017. The implementation of Clark Global City Project was officially launched on May 29, 2017 and it is ongoing. The construction of the ‘Three West Building’ in Clark Global City was completed on October 31, 2019.
Staff comments
1. The individual contribution of Bank of China to the syndicated loan is unknown. For the time being, AidData has estimated the contribution of Bank of China by assuming that the three lenders contributed equal amounts ($230 million) to the $690 million loan syndicate.