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Overview

Bank of China’s HCMC Branch contributes $8 million USD to $58 million USD syndicated loan for Vietnam National Coal and Mineral Industries Group (Vinacomin) in September 2008

Commitments (Constant USD, 2023)$11,267,569
Commitment Year•2008Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamOverseas Jurisdiction•Viet NamSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 16, 2008
First repayment (originally scheduled)
Sep 16, 2010
Last repayment (originally scheduled)
Sep 15, 2015

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

  • Cathay United Bank
  • Malayan Banking Berhad (Maybank)
  • Standard Chartered Bank PLC

Receiving agencies

State-owned companies

  • Vietnam National Coal - Mineral Industries Group (Vinacomin)

Security / collateral agents

Private Sector

  • Standard Chartered Bank PLC

Loan description

BOC contribution to $58 million USD syndicated loan in 2008 for Vietnam National Coal and Mineral Industries Group (Vinacomin)

Grace period•2 yearsGrant element•27.841%Interest rate (t₀)•1.8%Interest type•Fixed Interest RateMaturity•7 years

Collateral

This loan is identified as a collateralized loan because Standard Chartered Bank was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a security (collateral) agent is often appointed to enforce rights against the collateral in the event of the borrower’s default under the loan.

Narrative

Full Description

Project narrative

On September 16, 2008, foreign banks led by Standard Chartered signed an agreement providing a $58 million USD syndicated loan to Vietnam National Coal and Mineral Industries Group (Vinacomin). The foreign lenders in the deal include Cathay United Bank’s Chu Lai branch, Malayan Banking Berhad, and Bank of China’s HCMC branch. Standard Chartered Bank serves as a lead arranger and bookrunner, facility agent, security agent and paying agent. Standard Chartered Bank and Cathay United Bank each contributed $20 million USD, Malayan Banking Berhad contributed $10 million USD and Bank of China provided $8 million USD. This loan carried a maturity period of seven years, with two years of expansion, and an interest rate of 1.8% per annum. The loan was secured. The proceeds of loan will be used to finance Vinacomin’s capital expenditure requirements.

Staff comments

1. This loan is identified as a collateralized loan because Standard Chartered Bank was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a security (collateral) agent is often appointed to enforce rights against the collateral in the event of the borrower’s default under the loan.