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Overview

Bank of China contributes to a $1.5 billion AUD syndicated sustainability-linked loan for Ramsay Health Care for refinancing purposes

Commitments (Constant USD, 2023)$49,524,255
Commitment Year•2021Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•HealthFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2021
Last repayment (originally scheduled)
May 31, 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 ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Commonwealth Bank of Australia (CBA) (CommBank)
  • HSBC Bank PLC
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)

Receiving agencies

Private Sector

  • Ramsay Health Care Limited

Loan description

Bank of China contributions to a $1.5 billion AUD syndicated sustainability-linked loan for Ramsay Health Care for refinancing purposes

Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•4 years

Narrative

Full Description

Project narrative

In June 2021, financial close was reached on a deal in which a syndicate of 21 banks — including the Bank of China (BOC) — entered into a $1.5 billion AUD ($11 billion USD) syndicated sustainability-linked loan (SLL) agreement with Ramsay Health Care Limited — an Australian multinational healthcare provider and hospital network, Australia's largest operator of private hospitals — for refinancing purposes. This loan was divided into three tranches: a tranche with a maturity period of three years and an interest rate based on a floating rate plus a margin of 135 basis points (bps), a tranche with a maturity period of four years and an interest rate based on a floating rate plus a margin of 145 bps, and a tranche with a maturity period of five years and an interest rate based on a floating rate plus a margin of 155 bps. This loan featured five sustainability Key Performance Indicators (KPIs): mental health first aid training by a certain number of employees, energy intensity (as calculated by total consumption divided by patient days), three scopes of emissions (greenhouse gases, electricity, and waste) divided by patient days), total renewable energy projects development, and percentage of eligible suppliers with satisfactory sustainability ratings. Should Ramsay meet all or none of the five KPIs, the interest rate margins would decrease by up to 5 bps in aggregate or increase by up to 2.5 bps. In addition to BOC, the following lenders are known to have contributed to this loan syndicate: Commonwealth Bank of Australia (CBA), HSBC Bank, MUFG Bank, and National Australia Bank Limited (NAB). CBA, HSBC, MUFG, and NAB served as mandated lead arrangers and bookrunners and HSBC served as sole sustainability coordinator. The loan was launched in May 2021 and attracted commitments from over banks worth $3.5 billion AUD, with the final loan being up-sized from its launch size of $1.39 billion AUD during syndication. This was the first SLL for an Australian healthcare company and the largest SLL from Australia when it closed.

Staff comments

1. The individual contributions of the 21 lenders to this $1.5 billion AUD syndicated loan is unknown. For the time being, AidData has assumed each lender contributed to each tranche and assumed that each lender contributed equally ($71,428,571.4286 AUD) to the loan. 2. As it is unclear whether BOC committed to each tranche, AidData for the time being has coded the average of the three tranches' maturities {[(3 + 4 + 5) / 2] = 4} as the maturity period of this record.