Bank of China contributes $60 million to $300 million syndicated loan for GAIL Ltd. for refinancing purposes

In late November 2016, a syndicate of six banks — including the Bank of China (BOC) — signed a $300 million USD syndicated loan agreement with GAIL (India) Limited — an Indian central public sector undertaking (state-owned enterprise) owned by India's Ministry of Petroleum and Natural Gas — for refinancing purposes. This loan carried an interest rate of LIBOR plus a margin of 63.5 basis points (bps) and an average life of 1.5 years. The proceeds were to be used by the borrower to refinance its existing external commercial borrowings. BOC contributed $60 million USD. In addition to BOC, the following lenders contributed the respective amounts to the loan syndicate: Sumitomo Mitsui Banking Corporation (SMBC) ($95 million USD), Mizuho Bank ($55 million USD), DBS Bank ($50 million USD), Norinchukin Bank ($30 million USD), and Chiba Bank ($10 million USD). Syndication was launched in October 2016. SMBC, Mizuho, and DBS served as mandated lead arrangers and bookrunners, having pre-funded the loan in August 2016. BOC joined as a mandated lead arranger ahead of syndication. Norinchukin and Chiba Bank joined in syndication as arrangers.

Additional details

1. A 6-month LIBOR was assumed. The average 6-month LIBOR for November 2016 was 1.269%. Therefore, the interest rate has been coded as 1.269% + 0.635% (63.5 basis points), or 1.904%.

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Number of total sources

2