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Overview

Bank of China contributes to a $525 million SGD syndicated loan to AREIF (Singapore I) to finance the acquisition and conversion of Singapore Power Building

Commitments (Constant USD, 2023)$58,073,121
Commitment Year•2008Country of Activity•SingaporeDirect Recipient Country of Incorporation•SingaporeOverseas Jurisdiction•SingaporeSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 20, 2008
Start (actual)
Jun 20, 2008
End (actual)
Jun 20, 2008
Last repayment (originally scheduled)
Jun 20, 2011

Stakeholders

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

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • DZ Bank AG
  • Great Eastern General Insurance (formerly Overseas Assurance Corporation)
  • Great Eastern Life Assurance Co. Ltd
  • Oversea-Chinese Banking Corporation, Limited (OCBC Bank)
  • Standard Chartered Bank PLC

State-owned Banks

  • Bayerische Landesbank (BayernLB)
  • Hamburg Commercial Bank (HSOB) (Formerly HSH Nordbank AG)
  • WestLB AG

Receiving agencies

Private Sector

  • AREIF (Singapore I) Pte. Ltd.

Loan description

Bank of China contributes to SGD 525 million dual-tranche loan facility to AREIF (Singapore I) to finance the acquisition and conversion of Singapore Power Building

Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On June 20, 2008, a syndicate of nine banks — including the Singapore Branch of the Bank of China (BOC) — signed a $525 million SGD syndicated dual-tranche loan facility agreement with AREIF (Singapore I) Pte. Ltd. — a commercial property developer — to finance the acquisition and conversion of Singapore Power Building. The loan consisted of two tranches: a $500 million SGD term loan to finance the acquisition of the building and a $25 million SGD term loan to support the conversion of the property. The tranches carried an interest rate of 120 basis points and 150 basis points, respectively. The proceeds were to be used to partly finance the acquisition of Singapore Power Building, a high-rise commercial building in the Orchard district of Singapore, and then support the conversion (renovation) of part of the existing property to retail space. The acquisition was completed by June 2008. Other members of the lending group included DZ Bank (Singapore), Great Eastern Life Assurance, HSH Nordbank (Singapore), Landesbank (Singapore), Overseas Assurance Corporation, OCBC, Standard Chartered Bank, and WestLB.

Staff comments

1. The individual contributions of the nine lenders to this $525 million SGD loan are unknown. Therefore, for the time being, to estimate BOC's contribution, AidData has assumed that each lender contributed equally ($58,333,333.3333 SGD) to the loan syndicate. 2. It is unknown whether Bank of China contributed to one tranche or both, therefore AidData has used the average of the two reference rates in creating this project record [(1.20 + 1.50)/2 = 1.35%].