Bank of China contributes $80 million USD of $750 million syndicated loan to State Bank of India (Hong Kong) for working capital, general banking, and corporate purposes
Commitment amount
$ 92187052.5616779
Adjusted commitment amount
$ 92187052.56
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
India
Sector
Banking and financial services (Code: 240)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
On or around March 7, 2017, State Bank of India (Hong Kong) signed an agreement for a USD $750 million syndicated term loan with a syndicate of banks. The loan carried an all-in interest rate of LIBOR plus a margin of 85 basis points. BOC Singapore Branch contributed $50 million USD, and BOC Macau Branch contributed $30 million USD. The money is for working capital, general banking and corporate needs. Allocations from foreign branches of Indian banks accounted for 40% of the final facility. Among the mandated lead arrangers and book-runners, National Bank of Abu Dhabi retained the highest amount of $55m. The remaining five — Axis Bank, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, HSBC, and Standard Chartered — contributed $42m each at the end of general syndication, said a banker. The leads brought in India's UCO Bank, allotting it $200m split equally between its Hong Kong and Singapore branches. Bank of India also provided a $100m allocation. Bank of China was the third largest contributor to the loan, booking $50m through its Singapore branch and $30m through Macau. KDB took $30m, while its Singapore branch $20m. DZ Bank Singapore gave $30m, and AfrAsia Bank and Land Bank of Taiwan lent $10m each. Export-Import Bank of the Republic of China rounded off the syndicate with $5m.
Additional details
1. As of March 2017, the Government of India held around 61.23% equity shares in the State Bank of India. The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with 8.82% shareholding. 2. While multiple branches of BOC contributed to the facility, one unified record has been created to capture the overall BOC contribution. 3. This loan carried a 2.276% interest rate (AidData calculated the interest rate as follows: 1.426% [6-month LIBOR in March 2017] + 0.85% [85 basis points] = 2.276%).
Number of official sources
0
Number of total sources
1
Details
Cofinanced
Yes
Cofinancing agencies [Type]
National Bank of Abu Dhabi (NBA) [State-owned Bank]
Axis Bank [Private Sector]
BNP Paribas S.A. [Private Sector]
HSBC [Private Sector]
Standard Chartered Bank PLC [Private Sector]
UCO Bank [State-owned Bank]
Bank of India (BOI) [State-owned Company]
Korea Development Bank (KDB) [State-owned Bank]
DZ Bank AG [Private Sector]
Afrasia Bank Limited [Private Sector]
Land Bank of Taiwan Co., Ltd. (LBOT) [State-owned Bank]
MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)) [Private Sector]
Export-Import Bank of the Republic of China, Taipei [State-owned Bank]
Direct receiving agencies [Type]
State Bank of India (Hong Kong) [State-owned Bank]
Loan Details
Interest rate
2.276%