Tai Fung Bank contributes to $250 million syndicated loan for Parkson Retail for refinancing and working capital purposes (Linked to Project ID#98238, #98777 and #98778)
Commitment amount
$ 20890904.036943607
Adjusted commitment amount
$ 20890904.04
Constant 2021 USD
Summary
Funding agency [Type]
Tai Fung Bank Limited [State-owned Commercial Bank]
Recipient
Malaysia
Sector
Business and other services (Code: 250)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Description
In November 2010, Bank of China (BOC), Bank of Communications (BoComm), Nanyang Commercial Bank and Tai Fung Bank contributed to a $250 million syndicated loan for Parkson Retail, a Malaysian department store company. The syndicate has a total of 22 lenders. The original mandated lead arrangers of this loan include CIMB, DBS, JP Morgan, Natixis and Standard Chartered. Each of these arrangers committed USD $20 million. Six other banks joined the syndicate as mandated lead arrangers. These banks include BOC, Maybank, BoComm, Nanyang Commercial Bank, OCBC, and Tai Fung Bank. Each of these banks committed between USD $10 million and USD $20 million. Three banks - Bank of Taiwan, Cathay United Bank and Fubon Bank, later joined as lead arrangers. Their contributions are unknown. Six other banks, including Bangkok Bank, Chang Hwa Bank, Chinatrust Commercial Bank, First Commercial Bank, Taiwan Business Bank, and Taiwan Cooperative Bank, also joined the syndicate as arrangers. Their contributions are unknown. Finally, Sinopac and Industrial Bank of Taiwan joined as senior managers and their contributions are also unknown. The USD $250 million loan has an interest rate of LIBOR plus 215 basis points and a three-year maturity period. The original loan was USD $200 million but Parkson Retail increased the deal to $250 million to accommodate express demands. The loan proceeds will be used to pre-pay $125 million of senior notes maturing in 2012 and for working capital purposes. Bank of China's contribution is captured in Project ID#98238. Bank of Communication's contribution is captured in Project ID#98777. Nanyang Commercial Bank's contribution is captured in Project ID#98778.
Additional details
1. This loan carried a 2.596% all-in interest rate. AidData calculated the all-in interest rate as follows: 2.596% [average 6-month LIBOR in November 2010] +2.15% [215 basis points] = 2.596%) 2. While the precise contributions of BOC, BoComm, Nanyang Commercial Bank, and Tai Fung Bank are unknown, it is known they contributed between $10 million USD and $20 million USD. AidData has estimated that the contributions of the four banks by taking the average and midpoint of those numbers, or $15 million USD.
Number of official sources
0
Number of total sources
2
Details
Cofinanced
Yes
Cofinancing agencies [Type]
CIMB Bank Berhad [State-owned Bank]
DBS Bank [Private Sector]
JP Morgan [Private Sector]
Natixis [Private Sector]
Standard Chartered Bank PLC [Private Sector]
Malayan Banking Berhad (Maybank) [Private Sector]
Oversea-Chinese Banking Corporation, Limited (OCBC Bank) [Private Sector]
Bank of Taiwan [State-owned Bank]
Fubon Bank (Hong Kong) Limited (Formerly International Bank of Asia (IBA)) [Private Sector]
Bangkok Bank Public Company Limited (BBL) [Private Sector]
Chang Hwa Commercial Bank Limited [Private Sector]
First Commercial Bank Limited [Private Sector]
Taiwan Business Bank (TBB) [Private Sector]
Taiwan Cooperative Bank [State-owned Bank]
Bank SinoPac [Private Sector]
Industrial Bank of Taiwan [Private Sector]
Chinatrust Commercial Bank [Private Sector]
Cathay United Bank [Private Sector]
Bank of China (BOC) [State-owned Commercial Bank]
China Bank of Communications (BoCom or BoComm) [State-owned Commercial Bank]
Nanyang Commercial Bank (NCB) [State-owned Commercial Bank]
Direct receiving agencies [Type]
Parkson Malaysia [Private Sector]
Loan Details
Maturity
3 years
Interest rate
2.596%
Grant element (OECD Grant-Equiv)
9.4895%