ICBC participates in USD $250 million syndicated loan to Saka Energi Indonesia

In October 2017, ICBC and Bank of China participated in a $250 million USD syndicated loan to Saka Energi Indonesia, the upstream oil and gas arm of Indonesian state-owned Perusahaan Gas Negara. The deal was to sign in the first week of November 2017. ICBC and BOC each contributed $15 million USD to the loan syndicate as a lead arranger. Overseas Chinese Banking Corporation also received an allotment of $15 million. Among the six leads, BNP Paribas and Sumitomo Mitsui Banking Corp retained the largest amounts, at $35m apiece. BNP split its portion between its Indonesian branch, which took $25m, and the Singapore branch. which will hold $10m. They were followed by Citi, at $30m, and DBS, Mizuho and HSBC, all of which took $25m each. The next title was lead manager, which was taken by five banks. These were Intesa Sanpaolo and Taipei Fubon Commercial Bank, at $7m each; CTBC Bank and State Bank of India, at $6m each; and Shanghai Commercial Bank and Savings Bank, at $4m. According to a media report, incoming banks were scaled back heavily; for example, Bank of China’s commitment was close to $80m but it ended up with just $15m. The interest rate margin for onshore lenders as 143bp, while for offshore banks it was 128bp over dollar Libor. The borrower has to pay withholding tax on any funds obtained from offshore lenders, hence the difference in margins.

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