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Overview

Bank of China contributes to $1.75 billion revolving credit facility to Mubadala (Linked to Record ID#98912)

Commitments (Constant USD, 2023)$90,893,464
Commitment Year•2016Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2016
Last repayment (originally scheduled)
May 1, 2019

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

  • Australia and New Zealand Banking Group (ANZ)
  • Barclays Bank PLC
  • BNP Paribas S.A.
  • BofA Securities, Inc. (Formerly Bank of America Merrill Lynch (BAML))
  • Citigroup Inc.
  • Credit Agricole S.A. (Crédit Agricole Group)
  • Credit Suisse AG
  • Goldman Sachs Group, Inc.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • ING Bank N.V.
  • JP Morgan
  • Mizuho Bank, Ltd.
  • Morgan Stanley
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Natixis
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Wells Fargo Bank N.A.

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Mubadala Investment Company PJSC

Loan description

2016 syndicated $1.75 billion USD revolving credit facility from BoC, ICBC, and others to Mubadala in the UAE

Interest rate (t₀)•1.60415%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3 years

Narrative

Full Description

Project narrative

In May 2016, Bank of China (BOC) (#98911) and Industrial and Commercial Bank of China (ICBC) (#98912) each contributed an estimated $83.3 million to a $1.75 billion revolving credit facility to Mubadala, Abu Dhabi's sovereign wealth fund. The facility had a maturity of three years and a price of 45bps (0.45%) plus LIBOR for undrawn funds and 95bps (0.95%) plus LIBOR for fully drawn credit. The lending syndicate had twenty one (21) participants. ANZ Bank, BNP Paribas, BofA Securities, Bank of China (BOC), Barclays, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, HSBC, ING Bank, Industrial and Commercial Bank of China (ICBC), JP Morgan, MUFG, Mizuho, Morgan Stanley, Natixis, Societe Generale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation (SMBC), and Wells Fargo acted as mandated lead arrangers (MLAs). In 2019, Mubadala sought to refinance the facility and expand it to $2 billion.

Staff comments

1. For the time being, AidData is estimating Bank of China's (BOC) contribution ($83.3 million) to the lending syndicate by dividing the total amount of financing ($1.75 billion) by the number of lenders (21). 2. For the time being, AidData is estimating the loan's interest rate (1.633%) through a two-step process. First, the amount of credit drawn down through this facility is currently unknown, an average margin rate of 60bps (0.6%) is estimated by finding the mean of the reported undrawn (45bps/0.45%) and drawn (95bps/0.95%) margin prices. Then, this average rate (70bps/0.7%) is added to the contemporary 6-month LIBOR rate (0.933%). LIBOR information is taken from this source: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2016.aspx