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Overview

Bank of China contributes to $100 million NZD sustainability-linked syndicated lending facility to Queenstown Airport for unspecified purposes

Commitments (Constant USD, 2023)$15,348,591
Commitment Year•2023Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2023

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

  • ASB Bank Limited
  • Bank of New Zealand (BNZ)
  • Westpac New Zealand Limited (WNZL)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Queenstown Airport Corporation Limited (QAC)

Loan description

2023 syndicated NZD 100 million lending facility from BOC for sustainability-linked unspecified purposes

Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

In August 2023, a syndicate of four banks — including Bank of China (BOC) — converted their existing $100 million NZD lending facilities to a sustainability-linked syndicated lending facility to Queenstown Airport for unspecified purposes. The facility has an unknown maturity and interest rate. The airport can reduce its interest rate payments by meeting four agreed-upon targets: achieving Level 4 Airport Carbon Accreditation, reducing Queenstown Airport's Scope 1 and 2 greenhouse gas emissions, installing infrastructure that supports reductions in Queenstown Airport's Scope 3 greenhouse gas emissions, including enabling electrification of parked aircraft, ground service equipment, and charging infrastructure for electric vehicles, and reducing the waste sent to landfill across the terminal precinct. The syndicate is comprised of Westpac NZ, BNZ, ASB, and BOC. Westpac NZ and BNZ served as Joint Sustainability Coordinators on the transaction.

Staff comments

1. AidData is unable to ascertain the individual contributions made to the facility by each member of the syndicate, therefore equal contributions from each lender have been assumed ($100 million NZD/4 = $25 million NZD). 2. Due to a lack of information about pre-existing debt, AidData has treated this facility as a new facility, coding it accordingly.