ICBC contributes to the $2 billion USD tranche of a €3.15 billion EUR-equivalent senior syndicated Term Loan B to INEOS Quattro to facilitate the acquisition of BP's aromatics and acetyls business (Linked to Record ID#100267)

Project narrative

On January 29, 2021, a syndicate of 23 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a €3.15 billion EUR-equivalent senior syndicated Term Loan B agreement with INEOS Quattro Holdings Limited — formerly known as INEOS Styrolution Holding Limited, an England and Wales-incorporated chemicals entity combing German styrenics supplier INEOS Styrolution with INOVYN Limited and BP's aromatics and acetyls businesses — to facilitate the acquisition of BP's aromatics and acetyls business. This loan was divided into two tranches: a $2 billion USD tranche and a €1.5 billion EUR tranche. This loan carried a maturity period of five years and an interest rate of LIBOR (for the dollar tranche) and EURIBOR (for the euro tranche) plus a margin of 275 basis points (bps). The proceeds were to be used to pay the full amount of deferred consideration owed to BP and pay transaction-related fees and expenses for the $5 billion USD acquisition, refinance an existing €1.0643 billion EUR Term Loan B for INOVYN, and repay a $3.5 billion USD-equivalent two-year bridge loan signed in August 2020 as part of a $4.5 billion USD facility to fund the acquisition. Record ID#100266 captures ICBC's contribution to the $2 billion USD tranche. Record ID#100267 captures ICBC's contribution to the €1.5 billion EUR tranche. In addition to ICBC, the following lenders contributed to the loan syndicate (and to each tranche): JPMorgan Chase Bank N.A., Barclays Bank Plc, BNP Paribas S.A., Citibank N.A., Goldman Sachs Group, Inc., HSBC Bank PLC, BofA Securities, Inc., Commerzbank AG, Credit Suisse AG, Lloyds Bank, Mizuho Bank, Morgan Stanley, National Westminister Plc (NatWest), ABN AMRO Bank NV, Crédit Agricole Corporate and Investment Bank (CACIB), Deutsche Bank, ING Group N.V., Intesa Sanpaolo S.P.A., Banco Santander S.A., Fifth Third Bank, KBC Group N.V. and MUFG Bank, Ltd.. JPMorgan served as left-lead bookrunner (syndicate manager) for the dollar tranche. Barclays, BNP Paribas, Citibank, Goldman Sachs, and HSBC served as joint global coordinators and bookrunners on the dollar tranche. BNP Paribas, Goldman Sachs, and JPMorgan served as joint physical bookrunners for the euro tranche. Barclays, Citibank, and HSBC served as joint global coordinators and bookrunners for the euro tranche. ICBC, BofA Securities, Commerzbank, Credit Suisse, Lloyds, Mizuho, Morgan Stanley, NatWest, ABN AMRO, CACIB, Deutsche Bank, ING, Intesa Sanpaolo, Banco Santander, and Fifth Third Bank served as joint bookrunners on both the dollar and euro tranches. KBC and MUFG served as mandated lead arrangers. The proceeds of this loan were successfully used to repay all existing facilities on January 29, 2021. BP's petrochemical business was focused on aromatics and acetyls and included interests in manufacturing plants in Asia, Europe, and the U.S. It produced 9.7 million tons of petrochemicals in 2019. The acquisition was announced in June 2020. The acquisition was closed on December 2, 2020.