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Overview

Bank of China (Singapore Branch) contributes $50 million of $750 million syndicated loan to State Bank of India (Hong Kong) for working capital, general banking, and corporate purposes

Commitments (Constant USD, 2023)$53,206,319
Commitment Year•2017Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaOverseas Jurisdiction•SingaporeSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 7, 2017

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Afrasia Bank Limited
  • Axis Bank
  • BNP Paribas S.A.
  • DZ Bank AG
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Standard Chartered Bank PLC

State-owned Banks

  • Bank of India Limited (BOI)
  • Export-Import Bank of the Republic of China, Taipei
  • Korea Development Bank (KDB)
  • Land Bank of Taiwan Co., Ltd. (LBOT)
  • National Bank of Abu Dhabi PJSC (NBA)
  • UCO Bank

Receiving agencies

State-owned Banks

  • State Bank of India (SBI)

Loan desecription

Bank of China branch contributions to $750 million syndicated loan to State Bank of India (Hong Kong) for working capital, general banking, and corporate purposes

Interest rate (t₀)•2.27044%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

On or around March 7, 2017, State Bank of India (Hong Kong) signed an agreement for a $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. The Singapore Branch of Bank of China (BOC) contributed $50 million, and BOC Macau Branch contributed $30 million. The proceeds of the loan were to be used by the borrower 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 $55 million. The remaining five — Axis Bank, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, HSBC, and Standard Chartered — contributed $42 million each at the end of general syndication The leads brought in India's UCO Bank, allotting it $200 million split equally between its Hong Kong and Singapore branches. Bank of India also provided a $100 million allocation. Bank of China was the third largest contributor to the loan, booking $50 million through its Singapore branch and $30 million through its Macau branch. KDB contributed $30 million, while its Singapore branch contributed $20 million. DZ Bank Singapore gave $30 million, and AfrAsia Bank and Land Bank of Taiwan lent $10 million each. Export-Import Bank of the Republic of China rounded off the syndicate with a $5 million contribution.

Staff comments

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, AidData has generated a single, unified record to capture the overall BOC contribution. 3. AidData has estimated an all-in interest rate of 2.276% 1.426% [6-month LIBOR in March 2017] + 0.85% [85 basis points] = 2.276%.