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Overview

Bank of China contributes to USD 485 million syndicated loan to Bahrain Telecommunications Company (Batelco) to fund regional expansion projects

Commitments (Constant USD, 2023)$50,366,175
Commitment Year•2007Country of Activity•BahrainDirect Recipient Country of Incorporation•BahrainOverseas Jurisdiction•Hong Kong (China)Sector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 10, 2007
First repayment (originally scheduled)
Apr 9, 2008

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 (Hong Kong) Limited (BOCHK)

Cofinancing agencies

Intergovernmental Organizations

  • Bank of Bahrain and Kuwait B.S.C (BBK)

Private Sector

  • Ahli United Bank
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • National Bank of Bahrain B.S.C.
  • Raiffeisen Zentralbank Österreich A.G. (RZB)
  • Royal Bank of Scotland
  • SG Corporate & Investment Banking
  • Standard Chartered Bank PLC
  • The Bank of Tokyo-Mitsubishi, Ltd. (BTM)

State-owned Banks

  • Arab Banking Corporation (Bank ABC)
  • Export-Import Bank of the Republic of China, Taipei
  • Landesbank Baden-Württemberg (LBBW)
  • National Bank of Abu Dhabi PJSC (NBA)

Receiving agencies

Private Sector

  • Bahrain Telecommunications Company (Batelco)

Loan description

2007 syndicated $485 million USD loan from BoC and others to Bahrain Telecommunications Company (Batelco) to fund regional expansion projects in Bahrain

Grace period•1 yearsInterest rate (t₀)•5.501%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

On April 10, 2007, the Bahrain Telecommunications Company (Batelco) signed a USD 485 million syndicated loan agreement with a consortium of sixteen regional and international banks at Batelco’s Hamala Headquarters. The debut three-year syndicated loan for Batelco originally set at $300 million was oversubscribed by 60% and subsequently increased to $485 million. Under the coordination of Arab Banking Corporation (ABC) and Standard Chartered, the participants (MLAs) in the syndicate included National Bank of Bahrain B.S.C., The Bank of Tokyo-Mitsubishi UFJ, Ltd., JPMorgan, Mizuho Corporate Bank, Ltd., National Bank of Abu Dhabi, The Royal Bank of Scotland plc, SG Corporate & Investment Banking, Bank of China (Hong Kong) Limited, Raiffeisen Zentralbank Österreich Aktiengesellschaft, Ahli United Bank B.S.C., BBK B.S.C., The Export-Import Bank of the Republic of China, Intesa Sanpaolo S.p.A., Singapore Branch, Landesbank Baden-Württemberg, London Branch. The loan carried a 12 month grace period, with payments to be made in five equal installments (though the maturity is unknown), and an interest rate of LIBOR plus 25 basis points (5.501%). The purpose of the loan is to support Batelco's regional expansion plans.

Staff comments

1. The individual contributions of the banks that participated in the $485,000,000 syndicated loan are unknown. For the time being, AidData assumes equal contributions ($30,312,500) across all 16 members of the loan syndicate. 2. Bahrain Telecommunication Company BSC, trading as Batelco, (Arabic: بتلكو) is the principal telecommunications company in Bahrain. The company's headquarters are in Bahrain and the company is listed on the Bahrain Bourse. The Chairman of the Board is Abdulla Bin Khalifa Al Khalifa. Batelco's major shareholders include Orascom Investment Holding (60%) and the Government of Bahrain (through Mumtalakat Holding Company, Amber Holding Company and Social Insurance Organisation; 40%), various financial and commercial organizations, and private Bahraini, Gulf Cooperation Council countries (GCC) and international investors. 3. The 6-month LIBOR for April 2007 was used. The rates can be viewed here: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2007.aspx