Overview

Bank of Communications contributes USD 42 million to USD 1 billion syndication loan to VietinBank (Linked to Record ID#98407)

Commitments (Constant USD, 2023)$38,729,949

Commitment Year•2021Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 1, 2021

Last repayment: Nov 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

China Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Private Sector

Amret Microfinance Institution
Banco de Oro (BDO Unibank)
CTBC Bank (formerly Chinatrust Commercial Bank)
E.SUN Commercial Bank, Ltd.
Erste Group Bank AG (Erste Group)
First Commercial Bank Limited
HSBC Bank PLC
Hua Nan Commercial Bank, Ltd. (HNCB)
National Bank of Kuwait S.A.K. (NBK)
Oversea-Chinese Banking Corporation, Limited (OCBC Bank)
Sumitomo Mitsui Banking Corporation (SMBC)
Taipei Fubon Commercial Bank Co., Ltd. (Taipei Fubon Bank)
The Hyakugo Bank, Ltd.
United Overseas Bank Limited (UOB)

State-owned Banks

Bank of Baroda
Korea Development Bank (KDB)
State Bank of India (SBI)
UCO Bank

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

Vietnam Bank for Industry and Trade (VietinBank)

Loan desecription

BoCom and China Eximbank contribution to USD 1 billion syndication loan to VietinBank

Grant element•4.07%Interest rate (t₀)•1.09%Interest type•Fixed Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

In November 2021, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) entered into a USD 1 billion syndicated loan agreement with twenty members. Mandated lead arrangers and book-runners included HSBC, Sumitomo Mitsui Banking Corporation (SMBC), Taipei Fubon Commercial Bank, and UOB. Mandated lead arrangers included OCBC Bank, Amret Microfinance Institution, National Bank of Kuwait, Bank of Communications, and Bank of Baroda. Senior lead arrangers included CTBC Bank, Hua Nan Commercial Bank, State Bank of India, and UCO Bank. Lead arrangers included First Commercial Bank, Export-Import Bank of China (China Eximbank), Korea Development Bank, Hyakugo Bank, BDO Unibank, E. Sun Commercial Bank, and Erste Group Bank. The loan was oversubscribed during syndication. This loan carried a maturity period of one year and an interest rate of LIBOR plus a margin of 86 basis points. Bank of Communications' contribution of USD 42 million is captured in Record ID#98406. China Eximbank's contribution of USD 18.75 million is captured in Record ID#98407.

Staff comments

1. AidData has estimated the interest rate by adding 0.86% to the average six-month LIBOR in November 2021 (0.230%).