Narrative
Full Description
Project narrative
In January 2013, ICBC Indonesia contributed 5 million USD to a 165 million USD syndicated loan to PT Pan Brothers Tbk, an Indonesian clothing company. A total of 20 banks participated in the loan. The Australia and New Zealand Bank, HSBC, and United Overseas Bank acted as book runners. Other banks involved, and their respective USD contributions, were the Indonesia Eximbank (15 million), Permata (10 million), Standard Chartered (10 million), CIMB Niaga (7 million), Commonwealth Bank (7 million), Cathay United Bank (6 million), Bank of China (6 million), Banco Ban (5 million), Bank Internasional Indonesia (5 million), and the Mega International Commercial Bank (5 million). The remaining amount was split between the Bank of Taiwan, Chang Hwa Bank, Cosmos Co-operative Bank, E.Sun Commercial Bank, Hua Nan Bank, and Land Bank of Taiwan. The Bank of China contribution is captured in Record ID#98334. The syndicate loan consists of 15 million USD term loan commitment and a 150 million USD revolving credit commitment. The term loan has a maturity period of five years and an interest rate of TAIBOR plus a margin of 425 basis points. The revolver has a maturity period of three years and an interest rate of TAIBOR plus a margin of 375 basis points. AidData codes the both maturity period and interest rate as averages. The proceeds of the loan will be used by Pan Brothers for capital expenditure and to refinance an existing loan.
Staff comments
1) While ICBC and BOC's contributions are known to the entire loan, the breakdown of their contributions to each tranche, if applicable, is unknown. For now, AidData has assumed each lender contributed to both tranches equally: ICBC contributing 50% of 5 million to each, and BOC contributing 50% of 6 million to each. To calculate the maturity period, AidData has taken the average of the maturity periods of the term loan commitment and the revolving credit [(5 + 3) / 2) = 4] and has coded this as the maturity period for this record. To calculate the interest rate, AidData has taken the average of the interest rates of the term loan and the revolver (1.00383).