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Overview

ICBC participates in $300 million USD syndicated loan to Vingroup Joint Stock Company in June 2016

Commitments (Constant USD, 2023)$32,721,647
Commitment Year•2016Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 23, 2016
Start (actual)
Jun 23, 2016
End (actual)
Jul 11, 2021
First repayment
Dec 22, 2017
Last repayment
Jun 22, 2021

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Chang Hwa Commercial Bank Limited
  • Credit Suisse AG
  • Entie Commercial Bank
  • First Commercial Bank Limited
  • Hua Nan Commercial Bank, Ltd. (HNCB)
  • Maybank International (L) Limited
  • Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)
  • Ta Chong Bank Ltd.
  • Taipei Fubon Commercial Bank Co., Ltd. (Taipei Fubon Bank)

Receiving agencies

Private Sector

  • Vingroup Joint Stock Company

Loan desecription

ICBC contribution to $300 million syndicated loan in 2016to Vingroup Joint Stock Company

Grace period•1.5 yearsGrant element•11.0621%Interest rate (t₀)•5.6401%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•5 years

Collateral

Collateralized by common shares of Vingroup subsidiaries, including 100 million shares in Hanoi South Development Group, 327.5 million shares of Tan Lien Phat Construction Investment Company.

Narrative

Full Description

Project narrative

On June 23, 2016, real estate developer Vingroup Joint Stock Company acquired a $300 million USD syndicated loan for real estate projects and refinancing existing debt. This project captures the contribution of ICBC, which contributed to the loan as a mandated lead arranger. 12 banks participated in total, including Credit Suisse AG, Maybank International, Taipei Fubon, TA Chong Bank (now Yuanta Commercial Bank), Mega ICBC, Hua Nan Bank, Chang Hwa Bank, First Commercial Bank, and Entie Commercial. This loan carried a maturity period of five years (and an apparent grace period of 1.5 years, with a first repayment of January 2018 and last in July 2021), and an interest rate of 3-month LIBOR plus a margin of 500 basis points. The final maturity period was July 11, 2021. According to media reports, mandated lead arrangers committed $30m or more and earned 170bp for 545bp all-in. ICBC's exact contribution is unknown. This loan was disbursed in two installments, on July 11, 2016 and September 8, 2016. This loan was collateralized by a number of common shares of some subsidaries held by the borrower and another individual, including 100 million shares in Hanoi South Development Group (99% owned by Vingroup and developer of the Times City project), with the shares pledge and mortgage accounting for half of the charter capital of this company. It also appears to have been collateralized by 327.5 million shares of Tan Lien Phat Construction Investment Company, investor of Vinhomes Central Park complex. The Vingroup Syndicated Facility is also is guaranteed by, amongst others, certain members of Vingroup. This loan was fully drawn down.

Staff comments

1. According to media reports, mandated lead arrangers contributed at least USD $30 million. Given ICBC's status as a mandated lead arranger and in the absence of more specific data AidData assumes that ICBC has contributed USD $30 million. This issue warrants further investigation. 2. To calculate the interest rate AidData takes the average 3 month LIBOR from June 2016 and combines it with the base points. The 3M LIBOR for June 2016 was 0.652% + 5% = 5.652%.