Bank of China contributes $80 million to a syndicated loan to State Bank of India (Hong Kong) (Linked to Project ID#96813)

In June 2016, the Bank of China contributed $80 million in a $500 million syndicated loan to the State Bank of India (Hong Kong), an Indian state-owned bank. The loan had a three-year term (maturity) and the interest rate for this loan was 1.692% Joint book-runners and mandated lead arrangers included BNP Paribas, Bank of America, Bank of Tokyo-Mitsubishi UFJ, Citi, DBS, HSBC, National Bank of Abu Dhabi, and Wells Fargo Bank. 77 Bank, Bank of Taiwan, Hua Nan Commercial Bank, KGI Bank, Land Bank of Taiwan, Shikoku Bank, and CMB Wing Lung Bank joined the syndicate as mandated lead arrangers. See project ID#96813 for CMB Wing Lung Bank's contribution which was $22 million. The loan proceeds were to be used by the borrower for general corporate and working capital purposes. The leads collectively retained 60% of the deal on their books, with Bank of America Merrill Lynch keeping $50m, Bank of Tokyo-Mitsubishi UFJ $40m, and Wells Fargo $37.875m. BNP Paribas, Citi, DBS, HSBC, and National Bank of Abu Dhabi took $35.025m each. Among incoming lenders, the Bank of China received the maximum amount of $80m, while the Bank of Taiwan took $30m, Wing Lung Bank $22m, and Hua Nan Commercial Bank and KGI Bank $20m each. Land Bank of Taiwan and 77 Bank were allotted $10m apiece and Chugoku Bank received $5m.

Additional details

1. As of March 2017, the Government of India held around 61.23% equity shares in the State Bank of India. The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with 8.82% shareholding. 2. This loan carried a 1.692% interest rate (AidData calculated the interest rate as follows: 0.842% [6-month LIBOR in June 2009] + 0.85% [85 basis points] = 1.692%).

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