ICBC (Zurich Branch) contributes to debt restructuring — via a one-year maturity extension — of a $500 million USD syndicated sustainability-linked revolving credit facility to Sucafina for general corporate and refinancing purposes

Project narrative

In May 2021, a syndicate of 16 banks — including the Zurich Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $500 million USD syndicated sustainability-linked (SSL) senior secured borrowing base facility agreement with Sucafina S.A. — a Swiss multinational coffee production and trading company — for general corporate and refinancing purposes. This revolving credit facility (RCF) carried a maturity period of two years with two one-year extension options. This SSL featured Key Performance Indicators (KPIs) targeting the borrower's increase of its number of certified farmers and its reduction of its carbon footprint and deforestation in coffee-producing countries. The proceeds were to be used to refinance Sucafina's existing two-year $300 million USD senior secured borrowing base facility originally accrued in October 2017 and finance Sucafina Group's trading operations. Record ID#100949 captures ICBC Zurich Branch's contribution. In addition to ICBC Zurich Branch, the following lenders contributed to the loan syndicate; ING Bank N.V., Coöperatieve Rabobank U.A., the London Branch of Citibank N.A., Natixis, Credit Suisse (Switzerland) Ltd., HSBC Continental Europe, Raiffeisen Bank International AG, Société Générale S.A. (SocGen), UBS Switzerland AG, UniCredit Bank AG, CA Indosuez (Switzerland) S.A., Sumitomo Mitsui Banking Corporation (SMBC), DZ Bank AG, Banque Internationale de Commerce – BRED (Suisse) S.A., and Banque Cantonale de Genève (BCGE). ING Bank served as sole mandated lead arranger, bookrunner, coordinator, and documentation agent in syndication and as facility agent. The Geneva Branch of ING Bank served as security agent and overdraft bank. Rabobank served as Sustainability Agent. Rabobank, the London Branch of Citibank, and Natixis joined as mandated lead arrangers and bookrunners before syndication. Credit Suisse (Switzerland), HSBC Continental Europe, Raiffeisen Bank International, SocGen, UBS Switzerland, UniCredit Bank served as mandated lead arrangers. ICBC Zurich Branch, CA Indosuez (Switzerland), and SMBC served as mandated lead arrangers. DZ Bank served as lead arranger. Banque Internationale de Commerce – BRED (Suisse) and BCGE served as arrangers. The loan facility was oversubscribed and up-sized from its initial launch size of $400 million USD. Komgo S.A. served as digital agent for the loan facility. It used its blockchain-based platform Trakk, integrated with ING's account settlement system and Sucafina's accounting system to allow for automatic update of the loan facility's collateral based on invoices issued against it, with updates from Komgo's Konsole stock monitoring tool, which would automatically update stock at Sucafaina's 80 warehouses weekly. Then, in May 2023, the 16-bank syndicate — still including ICBC Zurich Branch — entered into an agreement with Sucafina to amend the $500 million USD RCF; in this amendment, the lenders extended the maturity period of the RCF by one year for a new maturity period of three years. Furthermore, the KPIs were adjusted for the next 12 months, with the carbon emission KPIs further strengthened to assess supply chain emissions and set initial targets for reducation. Additionally, existing lender Rabobank acceded in a new role as Traceability Agent responsible for providing traceability data on the supply chains for coffee financed under the facility. ICBC's contribution to this maturity extension is captured by Record ID#100950.