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Overview

Bank of China contributes to a $1.3 billion AUD syndicated loan to Australian Unity Healthcare Property Trust for refinancing and working capital purposes (Linked to Record ID#101350)

Commitments (Constant USD, 2023)$51,558,088
Commitment Year2022Country of ActivityAustraliaDirect Recipient Country of IncorporationAustraliaSectorBusiness And Other ServicesFlow TypeLoan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2022

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)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • HSBC Bank PLC
  • Mizuho Bank, Ltd.
  • National Australia Bank Limited (NAB)

Receiving agencies

Private Sector

  • Australian Unity Healthcare Property Trust (AUHPT)

Loan description

Bank of China contributions to a $1.3 billion AUD syndicated loan to Australian Unity Healthcare Property Trust for refinancing and working capital purposes

Interest typeUnknownMaturity3.375 years

Narrative

Full Description

Project narrative

In December 2021, a syndicate of at seven banks — including the Bank of China (BOC) — entered into a $1,000,000,000 AUD syndicated loan agreement with Australian Unity Healthcare Property Trust (AUHPT) — an Australia-incorporated healthcare property trust managed by Australian mutual company Australian Unity Limited — for refinancing and working capital purposes. This loan was senior and unsecured. This loan was divided into five tranches: a $250,000,000 AUD facility tranche (Tranche A) with a maturity period of 1.5 years and a final maturity date of June 2023; a $150,000,000 AUD facility tranche (Tranche B) with a maturity period of three years and a final maturity date of January 2025; a $250,000,000 AUD facility tranche (Tranche C) with a maturity period of four years and a final maturity date of December 2025; a $250,000,00 AUD facility tranche (Tranche D) with a maturity period of five years and a final maturity date of December 2026; and a $100,000,000 AUD term facility tranche with a maturity period of three years and a final maturity date of January 2025. The proceeds were to be used by the borrower for refinancing purposes, specifically repaying all existing drawn down under an existing $850 million AUD facility, and to support the borrower's pipeline of healthcare and social infrastructure acquisitions and developments. Record ID#101350 captures BOC's contribution. In November 2022, a syndicate of seven banks — including BOC — entered into a $1,300,000,000 AUD syndicated loan agreement with AUHPT for refinancing and working capital purposes. This senior unsecured loan was non-recourse to unitholders and was divided into eight tranches: Tranches B, C, and D, and the Term Facility Tranche from the original loan and four new tranches. The new tranches were: a $250,000,000 AUD facility tranche (Tranche A1) with a maturity period of 1.5 years and a final maturity date of May 2024; a $75,000,000 AUD facility tranche (Tranche B1) with a maturity period of three years and a final maturity date of November 2025; a $75,000,000 AUD facility tranche (Tranche C1) with a maturity period of four tranches and a final maturity date of November 2026; and a $150,000,000 AUD facility tranche (Tranche D1) with a maturity period of five years and a final maturity date of November 2027. The new tranches had a total debt of $550 million AUD. The proceeds of $250 million AUD Tranche A1 were used by the borrower to refinance the existing $250 million AUD Tranche A, while Tranche B1, C1, and D1 were entirely new, for a net gain of $300 million AUD in debt capacity; the loan remained for working capital purposes, namely supporting the borrower's expansion and development pipeline. Record ID#101353 captures BOC's contribution. In addition to BOC, the following lenders are known to have contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), National Australia Bank Limited (NAB), Commonwealth Bank of Australia (CBA), Mizuho Bank, and HSBC Bank. ANZ served as coordinating lender.

Staff comments

1. As Tranches B, C, and D, and the Term Facility Tranches from the original December 2021 were entirely unchanged, AidData has excluded them from estimating its contribution and maturity calculations. 2. To estimate the contribution of BOC, AidData has assumed that each lender contributed to the four new tranches (A1, B1, C1, and D1) worth $550 million AUD to this $1,300,000,000 AUD syndicated loan. The individual contributions of the seven lenders to these four tranches are unknown. For the time being, AidData has estimated BOC's contribution by assuming that each lender contributed equally ($78,571,428.5714 AUD) to the loan. 3. It is unclear whether BOC contributed to four tranches worth $550 million AUD of this $1.3 billion AUD syndicated loan. For the time being, AidData has coded the maturity period of this record by taking the average of the maturity of the four tranches {[(1.5 + 3 + 4 + 5) / 4] = 3.375}.