ICBC contributes to a €150,000,000 EUR syndicated loan to PJSC "Chelyabinsk Pipe Plant" for refinancing purposes (Linked to Project ID#98481)

In December 2017, a syndicate of six banks — including Agricultural Bank of China (Moscow) Limited (ABC) and Bank ICBC (JSC) — signed a €150,000,000 EUR-equivalent dual-currency syndicated facility agreement with PJSC "Chelyabinsk Pipe Plant" (ChelPipe) — a Russian steel pipe producer — for refinancing purposes. This loan was divided into two tranches: a €65,000,000 EUR tranche with an interest rate of EURIBOR plus a margin of 190 basis points (bps) and a $40,000,000 USD tranche with an interest rate of LIBOR plus a margin of 210 bps. This loan carried a maturity period of four years and was unsecured. There was an accordion option to increase the tranches by €10,000,000 EUR and $40,000,000 USD (provided by either the existing or new lenders). The proceeds of this loan were to be used by the borrower for the refinancing of the ChelPipe Group loan portfolio. Project ID#98481 captures ABC's contribution. Project ID#98482 captures ICBC's contribution. In addition to ABC and ICBC, the following lenders contributed to the loan syndicate: AO Raiffeisenbank, 'Commerzbank (Eurasija)' AO, and AO UniCredit Bank, and PJSC Rosbank. All lenders acted as mandated lead arrangers; Raiffeisenbank also acted as Documentation Agent and Facility Agent.

Additional details

1. The individual contribution of the six lenders to this €150,000,000 EUR syndicated loan is unknown. It is also known whether they contributed to each tranche, and how much to each tranche. For the time being, AidData has estimated the contribution of ABC and ICBC by assuming that each lender contributed an equal amount (€25,000,000 EUR) to the syndicated loan. 2. To calculate the interest rate, AidData, assuming each lender contributed to each tranche, has taken the average of the two interest rates, assuming a 6-month EUIRBOR and LIBOR (the average December 2017 EURIBOR and LIBOR being -0.271% and 1.768% respectively), {[(-0.271% + 1.9%) + (1.768% + 2.1%)] / 2}, or 2.7485%, and has coded this as the interest rate of this record.

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