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Overview

ICBC contributes to a $3 billion syndicated loan to Vale for refinancing and liquidity purposes in May 2015 (Linked to Record ID#98741 and #98739)

Commitments (Constant USD, 2023)$130,774,798
Commitment Year•2015Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2015
Last repayment (originally scheduled)
Apr 29, 2020

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

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • Barclays Bank PLC
  • BMO Financial Group (Bank of Montreal)
  • BNP Paribas S.A.
  • Canadian Imperial Bank of Commerce (CIBC)
  • Citibank, N.A.
  • Credit Agricole S.A. (Crédit Agricole Group)
  • DZ Bank AG
  • Goldman Sachs Group, Inc.
  • HSBC Bank PLC
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • Morgan Stanley
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Royal Bank of Canada (RBC)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • TD Securities Inc.

Receiving agencies

Private Sector

  • Vale S.A.

Loan description

ICBC contributes to a $3 billion syndicated loan to Vale for refinancing and liquidity purposes in May 2015

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

In April 2011, financial close was reached on a deal in which a syndicate of 27 banks — including the Bank of China (BOC) — entered into a $3 billion USD senior revolving export credit facility agreement with Vale S.A., a Brazilian iron-order miner, and its Swiss and Canadian subsidiaries, for cash management purposes. This loan carried a maturity period of five years and a reported interest rate of LIBOR plus a margin of 65 basis points (bps). Record ID#98741 captures BOC's contribution. Then, in May 2015, a syndicate of 24 banks — including the Industrial and Commercial Bank of China (ICBC) — signed a $3 billion USD syndicated revolving credit facility with Vale for refinancing and liquidity purposes. This loan carried a maturity period of five years. The proceeds of this loan were used by the borrower to replace and refinance the 2011 $3 billion USD syndicated loan. Record ID#98743 captures ICBC's contribution. In addition to ICBC, the following lenders contributed to the loan syndicate: BNP Paribas S.A., Citibank, Crédit Agricole, Sumitomo Mitsui Banking Corporation (SMBC), Australia and New Zealand Banking Group (ANZ), Bank of America, Bank of Montreal, Barclays Bank, Canadian Imperial Bank of Commerce (CIBC), DZ Bank, Goldman Sachs, HSBC, Intesa Sanpaolo, JP Morgan Chase Bank, Mizuho Bank, Morgan Stanley, the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Royal Bank of Canada (RBC), Banco Santander, Société Générale S.A. (SocGen), Standard Chartered Bank, TD Securities, and the Bank of Nova Scotia (Scotiabank). Then, in December 2019, a syndicate of 16 banks — including BOC — entered into a $3 billion USD syndicated revolving credit facility (RCF) agreement with Vale S.A. for refinancing and liquidity purposes. This loan carried a maturity period of five years. The proceeds were to be used by the borrower to replace the $3 billion USD loan signed in 2015 and to served as a liquidity source for the borrower to allow for more efficient cash management. Record ID#98739 captures BOC's contribution.

Staff comments

1. The individual contribution of the 24 lenders to this $3 billion USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($125,000,000 USD) to the syndicated loan.