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Overview

Bank of China contributes to NZD 470 million multi-tranche syndicated lending facility to Synlait Milk Limited for debt refinancing (linked to Record ID#100070)

Commitments (Constant USD, 2023)$57,710,702
Commitment Year•2023Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 18, 2023
Last repayment (originally scheduled)
Feb 16, 2025

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Coöperatieve Rabobank U.A. (Rabobank)
  • HSBC (Hong Kong and Shanghai Banking Corporation)

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

Private Sector

  • Synlait Milk, Ltd.

Loan description

2023 syndicated NZD 470 million multi-tranche lending facility from BOC and CCB to Synlait Milk Limited for debt refinancing in New Zealand

Interest type•UnknownMaturity•1.4166 years

Narrative

Full Description

Project narrative

On September 18, 2023, a group of five banks -- ANZ, Bank of China, China Construction Bank, HSBC, and Rabobank -- reached financial close on a NZD 470 million multi-tranche syndicated lending facility to Synlait Milk Limited. The facility is comprised of an unknown number of tranches, including a working capital facility of NZD 240 million and revolving credit facilities of NZD 230 million. The facilities step down with maturity dates between June 31, 2024 and October 1, 2025, with unknown interest rates. In addition, Synlait is required to make a prepayment of at least NZD 130 million by no later than March 31, 2024. The facilities mark the refinancing of Synlait's previous syndicated banking facilities. Other lending details, including a breakdown of the tranches, are unknown. The facility consists of the following financial covenants for Synlait in FY24: 1) total shareholder funds of no less than NZD 600 million at all times; 2) working capital ratio of no less than 1.5x at all times; 3) interest cover ratio of no less than 2.25x for the 31 July 2024 reporting date, increasing to 3.0x for the 31 July 2025 reporting date; 4) leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date, decreasing to no greater than 3.25x on and from 31 July 2025 reporting date; senior leverage ratio of no greater than 2.25x for 31 July 2024 reporting date. Bank of China's contribution is captured via Record ID#100069. China Construction Bank's contribution is captured via Record ID#100070.

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. 2. Given a lack of information about the breakdown of the tranches, and whether both Chinese lenders contributed to all tranches, a single, unified project record has been created using the average of the maturities across the tranches.