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Overview

Bank of China contributes $15 million USD to a $300 million USD syndicated loan for the Development Bank of the Philippines for general corporate purposes

Commitments (Constant USD, 2023)$16,360,824
Commitment Year•2016Country of Activity•PhilippinesDirect Recipient Country of Incorporation•PhilippinesSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2016
Last repayment (originally scheduled)
Mar 1, 2019

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

  • Australia and New Zealand Banking Group (ANZ)
  • Cathay United Bank
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Fuyo General Lease Co., Ltd.
  • Hua Nan Commercial Bank, Ltd. (HNCB)
  • ING Group N.V.
  • Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)
  • Mizuho Bank, Ltd.
  • SBI Shinsei Bank, Limited
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Trust Bank, Limited (SMTB)
  • The 77 Bank, Ltd.
  • The Chiba Bank, Ltd.
  • The Hyakugo Bank, Ltd.
  • The Shanghai Commercial & Savings Bank, Ltd. (SCSB)
  • The Shizuoka Bank Ltd.

State-owned Banks

  • Export-Import Bank of the Republic of China, Taipei
  • KDB Asia Limited
  • Taiwan Cooperative Bank

Receiving agencies

State-owned Banks

  • Development Bank of the Philippines (DBP)

Loan description

Bank of China contributes $15 million USD to a $300 million USD syndicated loan for the Development Bank of the Philippines for general corporate purposes in 2016

Grant element•10.5666%Interest rate (t₀)•1.78265%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In March 2016, a syndicate of 20 banks — including the Bank of China (BOC) — entered into a $300 million USD syndicated loan agreement with the Development Bank of the Philippines (DBP) — a Philippine state-owned development bank — for general corporate purposes. This loan carried a maturity period of three years, had a bullet repayment schedule, and carried an interest rate of LIBOR plus a margin of 90 basis points (bps). BOC contributed $15 million USD to the loan syndicate. In addition BOC, the following lenders contributed the respective amounts to the loan syndicate: Australia and New Zealand Banking Group (ANZ) ($25 million USD), ING Group ($25 million USD), Standard Chartered Bank ($25 million USD), Shinsei Bank ($25 million USD), Cathay United Bank ($22 million USD), Commerzbank ($22 million USD), Mizuho Bank ($22 million USD), Shizuoka Bank ($18 million USD), KDB Asia ($15 million USD), the Singapore Branch and the Overseas Business United of Hua Nan Commercial Bank (HNCB) ($15 million USD; $7.5 million USD for each unit), Mega International Commercial Bank ($15 million USD), Export-Import Bank of the Republic of China ($8.5 million USD), The Hyakugo Bank ($8.5 million USD), Sumitomo Mitsui Trust Bank (SMTB) ($8.5 million USD), Taiwan Cooperative Bank ($8.5 million USD), 77 Bank ($8.5 million USD), Chiba Bank ($4.5 million USD), Fuyo General Lease ($4.5 million USD), and Shanghai Commercial & Savings Bank (SCSB) ($4.5 million USD). ANZ, ING, and Standard Chartered served as original mandated lead arrangers and bookrunners. Shinsei, Cathay United, Commerzbank, and Mizuho joined in syndication as mandated lead arrangers and bookrunners. BOC, Shizuoka, KDB Asia, HNCB, and Mega International joined in syndication as mandated lead arrangers. Export-Import Bank of the Republic of China, Hyakugo, SMTB, Sumitomo Mitsui Trust Bank, Taiwan Cooperative, and 77 Bank joined in syndication as lead arrangers. Chiba, Fuyo General, and SCSB served as arrangers. General syndication was launched in mid-January 2016, and while it was oversubscribed, the loan was not increased.

Staff comments

1. A 6-month LIBOR was assumed. The average 6-month LIBOR for March 2016 was 0.901%. Therefore, the interest rate has been coded as 0.901% + 0.9%, or 1.801%.