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

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.

Additional details

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%.

Number of official sources

3

Number of total sources

8