Two Bank of China branches contribute USD 50 million to USD 400 million syndicated term loan facility to VinFast for unspecified corporate purposes (linked to project ID #97818)
Commitment amount
$ 54492487.39393384
Adjusted commitment amount
$ 54492487.39
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
Vietnam
Sector
Business and other services (Code: 250)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Description
In July 2018, a group of banks -- including Bank of China (Singapore branch), Bank of China (Thailand), and ICBC -- signed a USD 400 million syndicated term loan facility with VinFast Trading and Production, a subsidiary of Vietnamese conglomerate Vingroup Joint Stock Company, for unspecified corporate purposes. The facility has a five-year maturity and carries an interest rate of three-month LIBOR plus 350 basis points. Bank of China contributed USD 50 million (USD 35 million was allocated to the Singapore branch and USD 15 million to the Thailand branch), which is captured via project ID #97817 and ICBC contributed USD 80 million, which is captured via project ID #97818. Proceeds from the facility will be used to support VinFast, an automaker founded in September 2017 that is focused on producing cars, electric vehicles, and motorbikes, for unspecified corporate purposes. Other members of the syndicate and their contributions include: mandated lead arrangers and bookrunners Credit Suisse (USD 32 million), HSBC (USD 30 million), Maybank (USD 25 million), and Taipei Fubon Bank (USD 50 million). Korea Exchange Bank (USD 20 million) served as a mandated lead arranger and BNP Paribas (USD 20 million) joined as a lead arranger. Chailease Holding (USD 3 million) served as an arranger. Nine participants were each allocated USD 10 million: Bank of Panshin, Chang Hwa Bank, First Commercial Bank, Grand Capital, Hua Nan Commercial Bank, Taiwan Business Bank, Taichung Commercial Bank, Taiwan Cooperative Bank, and Taiwan Shin Kong Commercial Bank.
Additional details
1. The interest rate for this facility has been calculated using the three-month LIBOR for July 2018, plus 350 basis points (2.339 + 3.5 = 5.839%). For more information, see: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2018.aspx
Number of official sources
3
Number of total sources
6
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Credit Suisse AG [Private Sector]
HSBC (Hong Kong and Shanghai Banking Corporation) [Private Sector]
Malayan Banking Berhad (Maybank) [Private Sector]
Taipei Fubon Commercial Bank Co., Ltd. (Taipei Fubon Bank) [Private Sector]
Korea Exchange Bank (KEB) [Private Sector]
BNP Paribas S.A. [Private Sector]
Chailease Holding Company [Private Sector]
Chang Hwa Commercial Bank Limited [Private Sector]
First Commercial Bank Limited [Private Sector]
Grand Capital [Private Sector]
Taiwan Business Bank (TBB) [Private Sector]
Taichung Commercial Bank [Private Sector]
Taiwan Cooperative Bank [State-owned Bank]
Taiwan Shin Kong Commercial Bank [Private Sector]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Hua Nan Commercial Bank, Ltd. (HNCB) [Private Sector]
Bank of Panhsin [Private Sector]
Direct receiving agencies [Type]
VinFast Trading and Production [Private Sector]
Collateral
The loan is secured by an unknown number of ordinary shares in VinFast Trading and Production.
Loan Details
Maturity
5 years
Interest rate
5.839%
Grant element (OECD Grant-Equiv)
8.159%