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Overview

Bank of China contributes to the one-year €5.6 billion EUR revolving credit facility tranche of a €11.2 billion EUR syndicated loan to Nestlé for unspecified purposes

Commitments (Constant USD, 2023)$216,590,046
Commitment Year•2015Country of Activity•SwitzerlandDirect Recipient Country of Incorporation•SwitzerlandSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2015
Last repayment (originally scheduled)
Oct 1, 2016

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

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Barclays Bank PLC
  • BNP Paribas S.A.
  • BofA Securities, Inc. (Formerly Bank of America Merrill Lynch (BAML))
  • Citibank, N.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Credit Agricole S.A. (Crédit Agricole Group)
  • Credit Suisse AG
  • Danske Bank A/S
  • Deutsche Bank AG
  • Goldman Sachs Group, Inc.
  • HSBC Bank PLC
  • ING Group N.V.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Royal Bank of Canada (RBC)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • TD Securities Inc.
  • U.S. Bancorp
  • UBS Group AG
  • Wells Fargo Bank N.A.
  • Westpac Banking Corporation

State-owned Banks

  • Royal Bank of Scotland (RBS)
  • Zurich Cantonal Bank (Zürcher Kantonalbank (ZKB))

Receiving agencies

Private Sector

  • Nestlé S.A.

Loan description

2015 syndicated €11.2 billion EUR loan from Bank of China and others to Nestlé for unspecified purposes in Switzerland

Interest type•UnknownMaturity•1 years

Narrative

Full Description

Project narrative

In October 2015, a syndicate of at least 30 banks — including the Bank of China (BOC) — entered into a €11.2 billion EUR syndicated loan agreement with Nestlé S.A. — a Swiss multinational food and drinking processing conglomerate and owner of brands such as Aero, Kit Kat, Rolo, Nespresso, Nescafé, and Nesquik — for unspecified purposes. This loan consisted of two tranches: a €5.6 billion EUR revolving credit facility (RCF) tranche consisting of a €2.2 billion EUR portion and a $4.9 billion USD portion with a maturity period of one year and a final maturity date in October 2016 and a €5.6 billion EUR RCF tranche consisting of a €1.8 billion EUR portion and a $4.3 billion USD portion with a maturity period of five years and a final maturity date in October 2020. BOC contributed to the one-year €5.6 billion EUR RCF tranche. In addition to BOC, the following lenders are known to have contributed to this tranche: Australia and New Zealand Banking Group (ANZ), BNP Paribas S.A., Bank of America Merrill Lynch (BAML), Barclays Bank Plc, Citibank N.A., Crédit Agricole Group, Credit Suisse AG, Deutsche Bank AG, HSBC Bank PLC, ING Group N.V., JPMorgan Chase Bank N.A., the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mizuho Bank, Royal Bank of Canada (RBC), Royal Bank of Scotland (RBS), Société Générale S.A. (SocGen), Banco Santander S.A., Standard Chartered Bank Plc, UBS AG, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Commerzbank AG, Danske Bank A/S, The Goldman Sachs Group, Inc., Intesa Sanpaolo S.p.A., TD Securities Inc., U.S. Bancorp, Wells Fargo Bank N.A., Westpac Banking Corporation, and Zürcher Kantonalbank (ZKB). BOC, ANZ, BNP Paribas, BAML, Barclays, Citibank, Crédit Agricole, Credit Suisse, Deutsche Bank, HSBC Bank, ING, JPMorgan Chase Bank, BTMU, Mizuho Bank, RBC, RBS, SocGen, Banco Santander, Standard Charted, and UBS served as bookrunners. BBVA, Commerzbank, Danske Bank, Goldman Sachs, Intesa Sanpaolo, TD Securities, U.S. Bancorp, Wells Fargo Bank, Westpac, and ZKB served as arrangers. By October 2016, Nestlé was reportedly seeking to extend the maturity period of both the one-year and five-year portions of the €12 billion EUR syndicated loan.

Staff comments

1. The individual contributions of the 30 known lenders to the one-year €5.6 billion EUR RCF tranche of this €11.2 billion EUR syndicated loan is unknown. For the time being, AidData has estimated BOC's contribution by assuming that each lender contributed equally (€186,666,666.667 EUR) to the loan syndicate. 2. It is unknown if BOC contributed to the five-year €5.6 billion EUR RCF tranche. This issue merits further investigation. 3. In October 2013, BOC and a number of lenders provided a 364-day €5 billion EUR RCF tranche as part of a €10 billion EUR loan to Nestlé (see Record ID#100953); this tranche had a one-year extension option. The October 2015 €5.6 billion EUR RCF tranche may have refinanced that loan. This issue merits further investigation.