Bank of China contributes to €1.85 billion EUR syndicated loan to ista International GmbH for refinancing purposes (Linked to Record ID#100945)

Project narrative

In August 2020, a syndicate of 11 banks — including the Bank of China (BOC) and China Construction Bank Corporation (CCB) — entered into a €1.85 billion EUR ($2.2 billion USD) syndicated sustainability-linked loan (SLL) agreement with ista International GmbH — a Germany-based energy management services providers owned by Luxembourg-incorporated Lamarillo S.à r.l., a wholly-owned subsidiary of Sarvana S.à r.l., which is, via subsidiaries, is jointly owned by Bermuda-incorporated, Hong Kong-headquartered and Stock Exchange Hong Kong-listed CK Infrastructure Holdings Limited (CKI) (35% equity stake) and Cayman Islands-incorporated, Hong Kong-headquartered and Stock Exchange of Hong Kong-listed CK Asset Holdings Limited (65% equity stake) — for refinancing purposes. This loan carried a maturity period of five years with two one-year extension options and a variable interest rate plus a margin. As a SLL, this loan featured sustainability-linked Key Performance Indicators (KPIs) against which the borrower's performance would be assessed by SGS-TÜV Saar GmbH, with a positive and negative ratchet of the interest rate margin depending on whether the KPIs were met. The KPIs were as follows: carbon dioxide emissions per employee and the resource-efficient expansion of digital service infrastructure. The proceeds were to be used by the borrower to refinance a loan signed in 2017. Record ID#100944 captures BOC's contribution. Record ID#100945 captures CCB's contribution. In addition to BOC and CCB, the following lenders contributed to the loan syndicate: ING Group N.V., Sumitomo Mitsui Banking Corporation (SMBC), UniCredit Bank AG, Commerzbank AG, Landesbank Baden-Württemberg (LBBW), Mizuho Bank, the Bank of Nova Scotia (Scotiabank), ABN AMRO Bank NV, and Raiffeisen Bank International AG. ING, SMBC, and UniCredit served as environmental, social and governance (ESG) coordinators. BOC, Commerzbank, and LBBW served as bookrunners. BOC, Mizuho, and Scotiabank served as mandated lead arrangers. ABN AMRO and Raiffeisen Bank International served as arrangers. Commerzbank served as facility agent and UniCredit Bank served as documentation bank.