Bank of China contributes $12.5 million to a $250 million syndicated loan to Fullerton India Credit for working capital purposes

In October 2019, a syndicate of 17 banks — including the Bank of China (BOC) — entered into a syndicated $250 million USD-equivalent loan agreement with Fullerton India Credit Co. Ltd. — a non-banking financial company in India and wholly-owned subsidiary of Fullerton Financial Holdings, which in turn is a wholly owned subsidiary of Temasek, Singapore’s sovereign wealth fund — for working capital purposes. This loan carried a maturity period of three years, an amortization profile of 2.83 years, and an interest rate of LIBOR plus a margin of 120 basis points (bps). The proceeds of this loan were to be used by the borrower for working capital purposes. BOC contributed $12.5 million USD to the loan syndicate as a lead arranger. In addition to BOC, the following lenders contributed the respective amounts in the following roles to the loan syndicate: DBS Bank ($20 million USD as mandated lead arranger and bookrunner), Mizuho Bank ($50.6 million USD-equivalent denominated in Japanese yen as mandated lead arranger and bookrunner), MUFG Bank, Ltd. ($40 million USD-equivalent denominated in Japanese yen as mandated lead arranger and bookrunner), Bank of Baroda ($15.5 million USD as mandated lead arranger), Taipei Fubon Bank ($15.5 million USD as mandated lead arranger), BDO Unibank ($12.5 million USD as lead arranger), CTBC Bank ($12.5 million USD as lead arranger), Korea Development Bank (KDB) ($12.5 million USD as lead arranger), Far Eastern International Bank (FEIB) ($9.4 million USD as arranger), Bank of Taiwan ($7.5 million USD as arranger), First Commercial Bank ($7.5 million USD as arranger), Hua Nan Commercial Bank (HNCB) ($7.5 million USD as arranger), Land Bank of Taiwan (LBOT) ($7.5 million USD as arranger), Taishin International Bank ($7.5 million USD as arranger), Taiwan Cooperative Bank ($7.5 million USD as arranger), and Bank of Kaohsiung (BOK) ($4 million USD as lead manager). DBS, Mizuho, and MUFG launched the loan into syndication in July 2019, and the other 14 lenders joined during it.

Additional details

1. A 6-month LIBOR was assumed. The average 6-month LIBOR for October 2019 was 0.901%. Therefore, the interest rate has been coded as 1.957% + 1.2% (120 basis points), or 3.157%.

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