ICBC (Asia) participates in tranche two of $600 million syndicated loan to Tata Motors (Linked to Project ID#96724)

In March 2014, Industrial and Commercial Bank of China (Asia) agreed to participate in a $600 million syndicated loan to Tata motors. The loan was split into a four- and six-year tranche, and companies could contribute either USD or SGD. For the four-year loan, the interest rate was 222.5 basis points over LIBOR for US dollar commitments and 197.5 basis points for Singapore dollar commitments, while for the six-year loan, the margin is at 310 basis points and 285 basis points for the respective currencies. Tata motors planned to use the loan proceeds for an internal restructuring Project ID#96725 captures ICBC's contribution to the the six year tranche. Project ID#96724 captures ICBC's contribution to the four year tranche. . Bookrunners and mandated lead arrangers Australia and New Zealand Bank, DBS, First Gulf Bank, State Bank of India, and Standard Chartered each contributed $58 million. Crédit Agricole, which joined as an MLAB immediately after general syndicated, contributed $48 million, while MLA HSBC contributed $40 million. Korea Development Bank and Industrial and Commercial Bank of China (Asia) each contributed $50 million, Banco de Oro and Société Générale each contributed $25 million. Aozora Bank and Bank of Muscat each contributed $20 million, while Chang Hwa Commercial Bank, State Bank of India (Mauritius) and Taishin Bank each contributed $10 million.

Additional details

1. Tranche two is considered to be the six-year tranche. Contributions to each tranche were equal, so ICBC's contribution was $25 million. 2. Average LIBOR in March 2014 was 0.089%. 0.0089% plus 310 basis points yields an all-in interest rate of 3.189%. 3. For the time being, AidData has assumed that the ICBC loan was denominated in USD. This issue warrants further investigation.

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