GBI signed its annual syndicated borrowing facility on 19 June 2017 amounting to USD 250 million, which was fully drawn on 26 June 2017, with a maturity of one year. The proceeds will be used for the bank’s global trade finance activities. The Facility was self-arranged by GBI for the first time.
In consideration of the other euro-denominated funding sources from its retail clientele as well as in wholesale markets, GBI has preferred a USD-only facility.
Following an aggregate of USD 283.5 million initial commitments, a total of USD 33.5 million scale-back to the Leading Participants was applied for limiting the funding at USD 250 million. This new facility replaces the USD 127.5m tranche of the former one.
The all-in yield to Leading Participants, initially committing USD 30 million or more, was Libor plus 1.05% per annum, while Senior Participants, committing between USD 10 million and USD 30 million, received Libor plus 1.00% per annum all-in. Participants with a stake below USD 10 million obtained an all-in yield of Libor plus 0.95% per annum.
19 lenders from 13 countries invested in the Facility. The largest lender group by region consisted of banks from Middle-East and Asia, representing 33% of the facility amount. Eurozone lenders, North American lenders and other EU lenders followed with 28%, 20% and 19%, respectively.
Amongst the Leading Participants, GBI awarded the Documentation Agent role to Wells Fargo Bank London Branch while Bayerische Landesbank took up the Facility Agent role. The other Leading Participants were Standard Chartered Bank and Abu Dhabi Commercial Bank. The Senior Participants were Banca Transilvania, Korea Development Bank, Axis Bank, Citibank, Raiffeisen Bank International, The Export Import Bank of the Republic of China, and The Shanghai Commercial & Savings Bank while Cooperatieve Rabobank, Abanca Corporacion Bancaria, Bank of America Merrill Lynch International Limited, Bank of Montreal, BNP Paribas, ING Bank, Misr Bank-Europe and UniCredit Bank contributed at Participant level.