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Overview

Bank of China contributes to a $150 million USD syndicated loan for Gulf Petrochem Group

Commitments (Constant USD, 2023)$22,802,708
Commitment Year•2017Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 31, 2017
Last repayment (originally scheduled)
Jul 29, 2025

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

  • Al Ahli Bank of Kuwait K.S.C.P
  • ICICI Bank Limited
  • Mashreqbank PSC
  • National Bank of Fujairah PJSC (NBF)
  • United Arab Bank P.J.S.C. (UAB)

State-owned Banks

  • Emirates NBD Bank P.J.S.C.

Receiving agencies

Private Sector

  • Gulf Petrochem FZC (GPFZC) (Gulf Petrochem Group (GP))

Security / collateral agents

Private Sector

  • National Bank of Fujairah PJSC (NBF)

Loan description

Bank of China contributes to a $150 million USD syndicated loan for Gulf Petrochem Group

Interest type•Variable Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

In July 2017, a syndicate of seven banks — including the Bank of China (BOC) — entered into an agreement to provide a $150 million USD loan to the United Arab Emirate's Gulf Petrochem Group (GP) to finance the company's activities around the world. The loan reportedly had a term of 8 years with competitive pricing spread over the London Interbank Offered Rate (LIBOR). In addition to BOC, the following lenders contributed to the loan syndicate: Emirates NBD Bank PJSC, Al Ahli Bank of Kuwait, United Arab Bank, ICICI Bank, Mashreqbank PSC, and National Bank of Fujairah. Emirates NBD served as the lead bank. National Bank of Fujairah acted as security agent for the loan

Staff comments

1. The individual contribution of the seven lenders to this $150 million USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each of the 6 known lenders contributed an equal amount ($21,428,571.4286 USD) to the syndicated loan. 2. AidData has coded this transaction as a collateralized loan because National Bank of Fujairah acted as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral agent/security trustee is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan.