Overview

ICBC contributes USD 10 million to USD 230 million syndicated loan for VPBank for refinancing purposes

Commitments (Constant USD, 2023)$9,221,416

Commitment Year•2021Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamOverseas Jurisdiction•Hong Kong (China)Sector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Feb 1, 2021

Last repayment (originally scheduled): Feb 1, 2022

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

Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Intergovernmental Organizations

International Investment Bank

Private Sector

Bank of Panhsin (BOP) (formerly Panchiao Credit Cooperatives (PCC))
Chang Hwa Commercial Bank Limited
First Commercial Bank Limited
Hua Nan Commercial Bank, Ltd. (HNCB)
Maybank International (L) Limited
Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)
Sunny Bank
Taichung Commercial Bank
Taishin International Bank (Taishin Bank)
Taiwan Business Bank (TBB)
Taiwan Shin Kong Commercial Bank
The Shanghai Commercial & Savings Bank, Ltd. (SCSB)

State-owned Banks

State Bank of India (SBI)

Receiving agencies

State-owned Banks

Vietnam Prosperity Commercial Joint Stock Bank (VPBank)

Loan desecription

ICBC contribution USD 230 million syndicated loan for VPBank for refinancing purposes

Grant element•3.1942%Interest rate (t₀)•2.956%Interest type•Fixed Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

In February 2021, the Hong Kong branch of the Industrial and Commercial Bank of China (ICBC) committed to a USD 10 million contribution to a USD 230 million syndicated loan for VPBank Finance Co, the consumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank. The loan was initially closed in December 2020 at USD 170 million but was up-sized and closed again in February 2021 after five new lenders joined. State Bank of India contributed USD million. Chang Hwa Commercial Bank, Industrial and Commercial Bank of China, and Taiwan Business Bank each contributed USD 10 million. Bank of Panhsin contributed USD 5 million to the loan syndicate. The final individual contributions of lenders who joined prior to February 2021 are unknown. The borrowing terms include a one-year maturity period and an interest rate of LIBOR plus a margin of 275 basis points. This loan was intended for refinancing purposes.

Staff comments

1. AidData has estimated the interest rate by adding 2.75% to the average six-month LIBOR in February 2021 (0.206%).