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Overview

ICBC contributes to a €1 billion EUR syndicated sustainability-linked revolving credit facility for SGS for general corporate purposes

Commitments (Constant USD, 2023)$120,541,390
Commitment Year2021Country of ActivitySwitzerlandDirect Recipient Country of IncorporationSwitzerlandSectorBusiness And Other ServicesFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2021
Last repayment (originally scheduled)
Oct 31, 2026

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Bank CIC (Switzerland) Ltd. (Banque CIC (Suisse) S.A.
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Credit Suisse AG
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Société Générale S.A. (SocGen or Societe Generale)
  • UBS Group AG

State-owned Banks

  • Zurich Cantonal Bank (Zürcher Kantonalbank (ZKB))

Receiving agencies

Private Sector

  • SGS S.A.

Loan description

ICBC contributes to a €1 billion EUR syndicated sustainability-linked revolving credit facility for SGS for general corporate purposes

Interest typeUnknownMaturity5 years

Narrative

Full Description

Project narrative

In early November 2021, it was announced that a syndicate of nine banks — including the Industrial and Commercial Bank of China (ICBC) — signed a €1 billion EUR syndicated sustainability-linked revolving credit facility (RCF) agreement with SGS S.A. — a Swiss multinational company that works with inspection, testing, and certification services — for general corporate purposes. This loan carried a maturity period of five years with two one-year extension options. This loan featured three sustainability-linked Key Performance Indictors (KPIs): carbon dioxide emissions, women in leadership roles, and Lost Time Incident Rate. The interest rate's margin would increase or decrease depending on the borrower's performance of the KPIs. The proceeds of this loan were to be used for general corporate purposes and refinanced several undrawn bilateral committed credit lines. In addition to ICBC, the following lenders contributed to the loan syndicate: Société Générale S.A. (SocGen), UBS AG, Banque CIC (Suisse) S.A., BNP Paribas S.A., Citibank N.A., Credit Suisse AG, J.P. Morgan, and Zürcher Kantonalbank (ZKB). SocGen and UBS served as coordinators, mandated lead arrangers, and bookrunners. ICBC, Banque CIC, BNP Paribas, Citibank, Credit Suisse, J.P. Morgan and ZKB served as mandated lead arrangers and bookrunners. UBS served as facility agent and SocGen served as documentation agent and sustainability coordinator.

Staff comments

1. The individual contribution of the nine lenders to this €1 billion EUR syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount (€111,111,111.111 EUR) to the syndicated loan.