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Overview

Bank of China contributes $67.5 million AUD to a $1.1 billion AUD syndicated loan to OneSteel for unspecified purposes

Commitments (Constant USD, 2023)$93,863,841
Commitment Year•2007Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 20, 2007
Last repayment (originally scheduled)
Sep 18, 2012

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Bank of America Corporation
  • Bank of Nova Scotia (Scotiabank)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • HSBC Bank PLC
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)
  • Oversea-Chinese Banking Corporation, Limited (OCBC Bank)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • TD Securities Inc.
  • Westpac Banking Corporation

State-owned Banks

  • WestLB AG

Receiving agencies

Private Sector

  • OneSteel Finance Pty Limited

Loan description

Bank of China contributions to a $1.1 billion AUD syndicated loan to OneSteel for unspecified purposes

Interest rate (t₀)•7.505%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

Between September 14 and 20, 2007, a syndicate of 15 banks — including the Bank of China (BOC) — entered into a $1.1 billion AUD syndicated revolver loan agreement with OneSteel Finance Pty Ltd. — an Australia-incorporated wholly owned finance subsidiary of major Australian steel maker OneSteel Ltd. — for unspecified purposes. This loan carried a maturity period of five years, a bullet repayment profile, and an opening interest rate of BBSY plus a margin of 52.5 basis points (bps). In addition to BOC, the following banks contributed to this syndicated loan: Australia and New Zealand Banking Group (ANZ), Bank of America, Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Commonwealth Bank of Australia (CBA), HSBC Bank PLC, Mizuho Corporate Bank, Ltd. (MHCB), National Australia Bank Limited (NAB) (through its division nabCapital), Oversea-Chinese Banking Corporation, Limited (OCBC Bank), Bank of Nova Scotia (Scotiabank), Sumitomo Mitsui Banking Corporation Group (SMBC Group), TD Securities Inc., WestLB AG, and Westpac Banking Corporation. CBA and Westpac served as mandated lead arrangers. BOC, ANZ, BTMU, BBVA, HSBC, MHCB, NAB, OCBC Bank, Scotiabank, SMBC, TD, WestLB, and Bank of America served as lead managers. BOC and all other lead managers except Bank of America contributed $67.5 million AUD to the loan syndicate. CBA and Westpac each contributed $120 million AUD to the loan syndicate. Bank of America contributed $50 million AUD to the loan syndicate. The loan was up-sized from its $900 million AUD during syndication.

Staff comments

1. AidData is calculating the loan's interest rate (7.505%) as the sum of the reported margin rate (52.5bps/.525%) and the contemporary 6-month BBSY rate (6.98%). BBSY rate information was taken from this source: https://www.dropbox.com/scl/fi/vf4hmk3ca1b11nm8tyjkg/BBSW-and-BBSY-Daily-Reference-Rates-2000-to-2023.xlsx.xlsx?cloud_editor=gsheet&dl=0&rlkey=ozq8sa1itiq8kmpnqhdb6jndh#gid=544580120