Bank of China Frankfurt Branch contributes to EUR 1.535 billion revolving credit facility for TUI AG for working capital purposes (Linked to Record ID#101385)

Project narrative

On July 27, 2021, syndication launched on a loan in which a syndicate of 20 lenders — including Bank of China (BOC) Frankfurt Branch — provided an EUR 1.535 billion revolving credit facility to TUI AG — a German tourism company — for working capital purposes. The facility included an EUR 215 million guarantee line. Loan terms included a maturity of three years (July 19, 2024), a guarantee provided by TUI AG and its subsidiaries, quarterly utilization fees varying based on outstanding amount of the facility, and a base interest rate of EURIBOR plus margin. The annual margin would start at 4.5% and potentially reduce to as low as 2.5% if the long-term credit rating of TUI AG improved (4.5% for B-/B3 or lower, 3.75% for B/B2, 3.0% for B+/B1, and 2.5% for BB-/Ba3 or higher). As of October 4, 2021, EUR 1.4685 billion had been drawn out of the facility. The syndicate consisted of 20 banks: Bank of America Europe Designated Activity Company, Bank of China Frankfurt Branch (captured in this project), Barclays Bank Ireland PLC, BRED Banque Populaire, Citibank N.A. London Branch, Commerzbank AG Filiale Luxemburg, Credit Agricole Corporate and Investment Bank Deutschland, Credit Industriel et Commercial London Branch, Deutsche Bank Luxembourg S.A., DNB Bank ASA, HSBC Trinkaus & Burkhardt AG, Hamburg Commercial Bank AG, ING Bank N.V. London Branch, LBBW, Landesbank Hessen-Thuringen Girozentrale, Lloyds Bank Plc (until July 20, 2022 at which point their EUR 80 million contribution will be removed due to Brexit regulations), Natixis, Norddeutsche Landesbanke Girozentrale, Societe Generale S.A., Societe Generale S.A. Frankfurt Branch, and UniCredit Bank AG. In May 2023, TUI AG extended the maturity of this revolving credit facility by two years until July 2026, with the syndicate then consisting of 19 banks rather than 20. The renewal is captured in Record ID#101385.