Narrative
Full Description
Project narrative
In April 2019, a $1.5 billion dual-currency loan for Reliance Industries was launched for syndication. 19 lenders participated in the loan, including the Bank of China. Fifteen banks are arranging the deal as senior mandated lead arrangers and bookrunners. These banks include ANZ's Singapore branch, Bank of America, Barclays, BNS Asia, Crédit Agricole, DBS, First Abu Dhabi Bank, HSBC, Mizuho, MUFG Bank, Standard Chartered, State Bank of India's New York branch, Sumitomo Mitsui Banking Corporation's Singapore branch, United Overseas Bank and Westpac. These banks brought in four more lenders before launching the deal into general syndication. Korea Development Bank joined as a senior MLAB, Taipei Fubon Bank and Bank of China came in as MLABs and JP Morgan's Singapore branch participated as an MLA. Official financial commitments are due on May 17, 2019. The proceeds of this loan will be used for capital expenditures and other end uses. The loan was split into two tranches, each with a dollar-denominated facility and a yen-denominated facility. Tranche one includes a $650 million USD term loan and a ¥38.85 billion term loan. Tranche one’s dollar-denominated facility carries a 5.25 maturity period and offers margins of 106 basis points over dollar LIBOR. Tranche one’s yen-denominated facility carries a 5.25 maturity period and offers margins of 72.5 basis points over yen LIBOR. Tranche two includes a $350 million USD and a ¥16.65 billion term loan. Both facilities in this second tranche carry a 5.5 year maturity period. The dollar-denominated facility will pay lenders margins of 108 basis points over dollar LIBOR while the yen-denominated facility will pay 75.5 basis points over yen LIBOR. Bank of China contributed an estimated $34,210,526.30 USD to tranche one’s $650 million USD facility. Record ID#98354 captures tranche one’s dollar-denominated facility. Record ID#98356 captures tranche one’s yen-denominated facility. Record ID#98357 captures tranche two’s dollar-denominated facility. Record ID#98359 captures tranche two’s yen denominated facility.
Staff comments
1. This project captures the dollar-denominated facility in Tranche one of the $1.5 billion syndicated loan. This USD-denominated facility carried a 3.693% interest rate (AidData calculated the interest rate as follows: 2.633% [average 6-month USD LIBOR in April 2019] + 1.06% [106 basis points] = 3.693%). 2. Specific contributions of each financier are unknown. To calculate Bank of China’s contribution to this dollar-denominated loan facility, AidData a) assumes that each official sector financing institution from China contributed an equal amount to the syndicated loan and (b) estimates the contributions of each financier by dividing the total face value of the loan ($650 million USD) by the total number of financiers in the syndicate (19 financiers). This brings the contribution of each individual financier to $34,210,526.30 USD.