Narrative
Full Description
Project narrative
On October 13, 2006, Industrial and Commercial Bank of China (Asia) and 29 other banks participated in a $500 million syndicated loan agreement with Jio-BP (Reliance Petroleum) for the Jamnagar Refinery Project. The loan carried a maturity of 10 years and an interest rate of LIBOR plus 85 basis points. The interest rate was to scheduled rise to 165 basis points over LIBOR once the refinery came online. Only mandated lead arrangers (MLAs) were able to contribute to the loan. MLAs include ABN Amro, Bank of America, BNP Paribas, BTMU, Calyon, Citigroup, DBS, DZ Bank, HSBC, ICICI, Mizuho, SMBC, Standard Chartered, State Bank of India, Bank of Baroda, BayernLB, Fortis, HSH Nordbank, HVB, ICBC Asia, Intesa, KBC, KfW, Mashreq, RBS, WestLB, Natexis, NordLB, Union National Bank and China Construction Bank. China Construction Bank's contribution is captured via Record ID#96704. ICBC (Asia)'s contribution is captured via Record ID#96705. The Jamnagar Refinery is the private sector crude oil refinery owned by Reliance Industries in Jamnagar, Gujarat, India.
Staff comments
1. AidData assumes equal contributions ($16.67 million) across all syndicate participants. 2. Average LIBOR in October 2006 was 5.292%. 5.292% plus 85 basis points is equivalent to an all-in interest rate of 6.142%. 3. Sources differ as to whether ICBC and CCB were both involved as Mandated Lead Arrangers. The source with the most complete information about this second tranche suggests that they were, so that information was used. 4. The $500 million syndicated loan was separate from and additional to a $1.5 billion syndicated loan made to Reliance Petroleum for the Jamnagar Refinery Project (as captured via Record ID#96702 and 96703). Contributions to the $500 million syndicated loan were made pro rata to the original, $1.5 billion loan commitment.