ICBC contributes to a $800 million USD syndicated loan to Techcombank for general corporate and working capital purposes

In October 2021, a syndicate of 28 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $800 million USD syndicated loan agreement with Vietnam Technological and Commercial Joint Stock Bank (Techcombank) — a Vietnamese bank — for general corporate and working capital purposes. This dual-tranche senior unsecured loan consisted of two tranches: a $600 million USD tranche with a maturity period of three years and an interest rate of USD LIBOR plus a margin of 135 basis points (bps) per annum and a $200 million USD tranche with a maturity period of five years and an interest rate of USD LIBOR plus a margin of 162 bps per annum. The proceeds were to be used by the borrower for general corporate and working capital purposes. In addition to ICBC, the following lenders are known to have contributed to the loan syndicate: Standard Chartered Bank PLC, Cathay United Bank, Maybank Kim Eng, State Bank of India (SBI), Taishin International Bank, and Mega International Commercial Bank. There were 28 total lenders, with 20 joining during syndication, which was launched in June 2021, leading to an up-sizing of the facility to $800 million USD. Standard Chartered was the original mandated lead arranger and bookrunner; Cathay United Bank, Maybank, Taishin Bank, and SBI joined in senior syndication as mandated lead arrangers and bookrunners/underwriters. ICBC and Mega International joined in senior syndication as mandated lead arrangers.

Additional details

1. The individual contribution of the 28 lenders to this $800 million USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($28,571,428.5714 USD) to the syndicated loan. 2. It is unclear whether ICBC contributed to both tranches. For the time being, AidData has assumed that it contributed equally to the tranches, and has coded the average of the tranches' maturities [(3 + 5) / 2], or 4, as the maturity period for this record. AidData, assuming a 6-month LIBOR and knowing the average 6-month LIBOR for October 2021 was 0.167%, has coded the average of the tranches' interest rate {[(0.167% + 1.35%) + (0.167% + 1.62%)] / 2}, or 1.652% as the interest rate for this record.

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