Completed Mixed AidData Chinese Aid

Bank of China (Singapore Branch) contributes $50 million of $750 million syndicated loan to State Bank of India (Hong Kong) for working capital, general banking, and corporate purposes

$50M USD

Funder	Bank of China (BOC)
Recipient Organization	State Bank of India (SBI)
Country	India
Start Date	Mar 07, 2017
End Date	May 24, 2030
Duration	4,826 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`98746`

Grant Description

Bank of China branch contributions to $750 million syndicated loan to State Bank of India (Hong Kong) for working capital, general banking, and corporate purposes On or around March 7, 2017, State Bank of India (Hong Kong) signed an agreement for a $750 million syndicated term loan with a syndicate of banks.

The loan carried an all-in interest rate of LIBOR plus a margin of 85 basis points. The Singapore Branch of Bank of China (BOC) contributed $50 million, and BOC Macau Branch contributed $30 million. The proceeds of the loan were to be used by the borrower for working capital, general banking, and corporate needs.

Allocations from foreign branches of Indian banks accounted for 40% of the final facility.

Among the mandated lead arrangers and book-runners, National Bank of Abu Dhabi retained the highest amount of $55 million.

The remaining five — Axis Bank, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, HSBC, and Standard Chartered — contributed $42 million each at the end of general syndication The leads brought in India's UCO Bank, allotting it $200 million split equally between its Hong Kong and Singapore branches. Bank of India also provided a $100 million allocation.

Bank of China was the third largest contributor to the loan, booking $50 million through its Singapore branch and $30 million through its Macau branch. KDB contributed $30 million, while its Singapore branch contributed $20 million. DZ Bank Singapore gave $30 million, and AfrAsia Bank and Land Bank of Taiwan lent $10 million each.

Export-Import Bank of the Republic of China rounded off the syndicate with a $5 million contribution.

📋 Staff Comments

As of March 2017, the Government of India held around 61.23% equity shares in the State Bank of India. The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with 8.82% shareholding.
While multiple branches of BOC contributed to the facility, AidData has generated a single, unified record to capture the overall BOC contribution.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

SBI swells to $750m with Indian bank support
China loan volume down 20%; Taiwan 47%
SBI plans to raise up to $750 million loan from offshore market
Biggest finance sector loan of 2017; Energy dominates in India Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.