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Overview

Bank of China contributes to $625.67 million refinancing revolving credit facility to MOL Group (Linked to Record ID#99165)

Commitments (Constant USD, 2023)$40,284,295
Commitment Year•2019Country of Activity•HungaryDirect Recipient Country of Incorporation•HungarySector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 26, 2019
Last repayment (originally scheduled)
Sep 24, 2024

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

  • BNP Paribas S.A.
  • Československá obchodní banka, a. s. (CSOB)
  • Citibank, N.A.
  • Commercial International Bank-Egypt S.A.E. (CIB)
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Erste Group Bank AG (Erste Group)
  • ING Bank N.V.
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • K&H Bank
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • 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)

Loan description

In 2019, Bank of China and ICBC contribute to $625.67 million refinancing revolving credit facility to MOL Group

Interest rate (t₀)•3.21438%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On October 30, 2014, Bank of China (BOC) (#99147) and Industrial and Commercial Bank of China (ICBC) (#99148) each contributed an estimated $103.33 million to a $1.55 billion syndicated 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 155bps (1.15%), which was most likely added to contemporary LIBOR to derive the interest rate. Fifteen (15) institutions participated in the lending syndicate. Unicredit, Sumitomo Mitsui Banking Corporation (SMBC), Citibank, Erste Group Bank, Ceskoslovenska obchodni banka (CSOB), Credit Agricole CIB, ING Bank, Mizhuho Bank, and Bank of America (now BofA Securities) acted as mandated lead arrangers (MLAs). Bank of China (BOC), Commerzbank, Industrial and Commercial Bank of China (ICBC), Barclays, and MUFG Bank acted as lead arrangers. Commercial International Bank (CIB) acted as arranger. On September 26, 2019, the facility was extended (BOC: #99164, ICBC: #99165). $930 million in financing was cancelled, resulting in a $620 million facility holding an identical maturity structure of five (5) years plus two possible year-long extensions. AidData is currently assuming the same margin rate as the previous facility (115bps/1.15%), likely added to contemporary LIBOR. In addition, Credit Agricole CIB, Bank of America, and Barclays were replaced as lenders by K&H Bank, JP Morgan, and BNP Paribas. The lender roles in the reconstituted lending syndicate are described below. Unicredit, SMBC, ING Bank, K&H Bank, JP Morgan, Erste Group Bank, MUFG, CSOB, and BNP Paribas acted as mandated lead arrangers (MLAs) and joint bookrunners. Unicredit and BNP Paribas acted as coordinators. Erste Group Bank acted as facility agent. ICBC, BOC, Commerzbank, Citibank, and Mizuho Bank acted as lead arrangers. CIB acted as arranger. ING Bank is known to have contributed $82.33 million, and as such all other contributions, including BOC's and ICBC's, are currently estimated at $38.81 million.

Staff comments

1. For the time being, AidData is estimating the facility's interest rate (3.199%) as the sum of the reported margin rate (115bps/1.15%) and the contemporary 6-month LIBOR (2.049%). LIBOR information was taken from this source: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2019.aspx 2. For the time being, AidData is using IJGlobal's estimate of Chinese contributions ($38.81 million each), which was derived by dividing the total amount of unaccounted financing ($543.34 million) by the number of known lenders contributing to said financing (14).