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).