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Overview

Bank of China contributes £36.363 million GBP to a £400 million GBP syndicated sustainability-linked revolving credit facility to RS Group for refinancing purposes

Commitments (Constant USD, 2023)$42,420,612
Commitment Year•2022Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 24, 2022
Last repayment (originally scheduled)
Oct 23, 2027

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

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Citibank, N.A.

Receiving agencies

Private Sector

  • RS Group plc

Loan description

Bank of China contributes £36.363 million GBP to a £400 million GBP syndicated sustainability-linked revolving credit facility to RS Group for refinancing purposes

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On October 24, 2022, a syndicate of 11 banks — including the Bank of China (BOC) — entered into a £400 million GBP syndicated sustainability-linked revolving credit facility (RCF) agreement with RS Group plc — an England and Wales-incorporated British industrial and electronic products company listed on the London Stock Exchange — for refinancing purposes. This loan carried a maturity period of five years with two one-year extension options subject to individual lender approval, a final maturity date in October 2027, and a accordion option for an additional £100 million GBP. As a sustainability-linked loan (SLL), this RCF featured environmental, social and governance (ESG) metrics against which the borrower's performance was assessed, namely the reduction of scope one and scope two carbon dioxide emissions, packaging intensity, and the percentage of management that were women. The borrower had an option to fresh metrics to reflect overachieving on its carbon emissions in the loan's first two years. This loan was an amendment and restatement RCF of a 2021 £300 million sustainability-linked RCF (which it shared the same pricing as, albeit with reduced extension fees and an arrangement fee spread over a longer period), which the proceeds of the £400 million GBP were used by the borrower to refinance. Each lender contributed evenly to the loan syndicate (£36,363,636.3636 GBP each). In addition to BOC, the following lenders contributed to the loan syndicate: Citibank N.A. and Banco Bilbao Vizcaya Argentaria, S.A. (BBVA). BOC, Citibank, and BBVA were the three new lenders to the £400 million GBP RCF. The other eight lenders were also lenders to the 2021 £300 million GBP loan. As of March 31, 2023, £24.2 million GBP had been drawn down from this RCF. The borrower repaid that drawing in April 2023.