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Overview

Industrial and Commercial Bank of China contributes to EUR 470 million debt rescheduling of EUR 555 million revolving credit facility to MOL Group (Linked to Record ID#99162)

Commitment Year•2021Country of Activity•HungaryDirect Recipient Country of Incorporation•HungarySector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 29, 2021
Last repayment (originally scheduled)
Nov 28, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Citibank, N.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Erste Group Bank AG (Erste Group)
  • ING Bank N.V.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • KBC Group N.V.
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • OTP Bank (formerly National Savings and Commercial Bank Ltd.)
  • Raiffeisen Bank International AG
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Türkiye Garanti Bank BBVA
  • UniCredit S.p.A. (formerly UniCredito Italiano S.p.A.)

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • MOL Hungarian Oil and Gas Public Limited Company (MOL Plc.) (MOL Group)

Guarantors

Private Sector

  • MOL Hungarian Oil and Gas Public Limited Company (MOL Plc.) (MOL Group)

Loan description

Industrial and Commercial Bank of China contributes to EUR 470 million debt rescheduling of EUR 555 million revolving credit facility to MOL Group (Linked to Record ID#99162)

Interest rate (t₀)•0.98%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•4 years

Narrative

Full Description

Project narrative

On July 9, 2018, the Bank of China (BOC) (#99149) and the Industrial and Commercial Bank of China (ICBC) (#99150) each contributed an estimate EUR 37 million to a EUR 555 million revolving credit facility to MOL Group, likely as general working capital. The facility had a maturity of five (5) years and two possible year-long extensions for a total possible maturity of seven (7) years. In addition, the facility had an margin rate of 75ps (.75%), which was most likely added to contemporary LIBOR to derive the interest rate. Fifteen (15) institutions participated in the lending syndicate. Erste Group, ING Bank, KBC Group, Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), and UniCredit acted as joint bookrunners. Bank of China (BOC), Citibank, Commerzbank, Industrial and Commercial Bank of China (ICBC), Intesa Sanpaolo, MUFG Bank, OTP Bank, Raiffeisen Bank International, and Garanti BBVA acted as arrangers. MOL Group acted as guarantor. In July, 2019, MOL Group extended the maturity of EUR 470 million of the facility to July 9, 2024. Then, on November 29, 2021, the maturity of the facility was extended along the following lines: EUR 35 million retained the original maturity date of July 9, 2023, EUR 50 million was set to mature on July 9, 2024 (BOC: #99160, ICBC: #99161), and the maturity of EUR 470 million was extended for the second and final time to July 9, 2025 (BOC: #99162, ICBC: #99163).

Staff comments

1. For the time being, AidData is estimating the facility's interest rate (0.98%) as the sum of the reported margin rate of the original loan, which is assumed to be unchanged (75bps/0.75%), and the contemporary 6-month LIBOR (0.23%). LIBOR information was taken from this source: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2021.aspx 2. For the time being, AidData is estimating each Chinese contribution (EUR 31.33 million) by dividing the total amount of financing (EUR 470 million) by the number of known lenders (15).