Overview

China Construction Bank contributes $7.5 million USD to $50 million USD syndicated loan for Jindal Steel and Power Bank in September 2004

Commitments (Constant USD, 2023)$15,778,022

Commitment Year•2004Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 1, 2004

Last repayment (originally scheduled): Aug 31, 2009

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

Barclays Corporate and Investment Bank (Formerly Barclays Capital)
Bumiputra Commerce Bank (BCB) (formerly known as Commerce Asset-Holdings Berhad)
Chiao Tung Bank Company Ltd.

State-owned Banks

Bank of Baroda
State Bank of India (SBI)

Receiving agencies

Private Sector

Jindal Steel and Power Limited (JSPL)

Loan description

China Construction Bank contribution to USD 50 million syndicated loan for Jindal Steel and Power Bank in September 2004

Grant element•12.4457%Interest rate (t₀)•3.778%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In September 2004, China Construction Bank contributed $7.5 million USD to a $50 million USD syndicated loan for Jindal Steel and Power Bank in India. Barclays Capital served as a mandated arranger of the syndicated loan but its contribution is unknown. Sub-underwriters included Bank of Baroda and China Construction Bank; both underwriters contributed $7.5 million USD. Other participants in the loan included State Bank of India, Chiao Tung Bank (Singapore) and Bumiputra-Commerce Bank (London). Their contributions are unknown. The loan carried a maturity period of five years and an interest rate of 3.778% (average 6-month LIBOR in September 2004 + 170 basis points). The use of loan proceeds are unknown but it is reported that financing for the loan was expected to close on October 29, 2004.

Staff comments

1. This loan carried a 3.778% interest rate (AidData calculated the interest rate as follows: 2.078% [average 6-month LIBOR in September 2004] + 1.70% [170 basis points] = 3.778%).