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Overview

Bank of China contributes $10 million USD to $200 million USD syndicated loan for Rural Electrification Corporation for unspecified purposes

Commitments (Constant USD, 2023)$16,615,645
Commitment Year•2007Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 17, 2007
Last repayment (originally scheduled)
May 15, 2012

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Cathay United Bank
  • Deutsche Pfandbriefbank AG (PBB) (Formerly DEPFA Bank plc)
  • DZ Bank AG
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • Kommunalkredit International Bank Limited
  • Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)
  • Standard Chartered Bank PLC

State-owned Banks

  • Bank of Taiwan
  • Export-Import Bank of the Republic of China, Taipei

Receiving agencies

State-owned companies

  • REC Limited

Loan description

Bank of China contribution to USD 200 million syndicated loan for Rural Electrification Corporation for unspecified purposes

Grant element•8.1382%Interest rate (t₀)•5.849%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

Between May 11 and 17, 2007, a syndicate of banks — including the Bank of China (BOC) — entered into a $200 million USD syndicated loan agreement with Rural Electrification Corporation Limited (now known as REC Limited) — an Indian company that finances and promotes power projects that is majority-owned by Indian central public undertaking Power Finance Corporation Limited (PFC), itself owned by India's Ministry of Power — for unspecified purposes. This loan carried a maturity period of five years, had a bullet repayment facility, and an interest rate of LIBOR plus a margin of 48 basis points (bps). BOC contributed $10 million USD to the loan as an arranger. In addition to BOC, the following lenders contributed the respective amounts to the loan syndicate: DEPFA Bank ($66 million USD), Standard Chartered Bank ($33 million USD), Kommunalkredit International Bank ($22 million USD), BNP Paribas ($20 million USD), Bank of Taiwan ($10 million USD), the Export-Import Bank of the Republic of China ($6 million USD), Cathay United Bank ($5 million USD), Intesa Sanpaolo ($5 million USD), and Mega International Commercial Bank ($3 million USD). BNP Paribas and Standard Chartered Bank served as original mandated lead arrangers and bookrunners and pre-funded the deal. DEPFA Bank, DZ Bank, and Kommunalkredit International Bank served as mandated lead arrangers. BOC and Bank of Taiwan served as arrangers. Export-Import Bank of the Republic of China, Cathay United, Intesa Sanpaolo, and Mega International Commercial served as lead managers.

Staff comments

1. A 6-month LIBOR was assumed. AidData has coded the interest rate 5.849% (AidData calculated the interest rate as follows: 5.369% [average 6-month LIBOR in May 2007] + 0.48% [48 basis points] = 5.849%).