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Overview

Bank of China contributes to a $255 million USD syndicated revolving credit facility to XP Power for unspecified purposes

Commitments (Constant USD, 2023)$40,159,063
Commitment Year•2022Country of Activity•SingaporeDirect Recipient Country of Incorporation•SingaporeSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2022
Last repayment (originally scheduled)
Jun 1, 2026

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 de Sabadell, S.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • DBS Bank Ltd.
  • HSBC UK Bank plc
  • J.P. Morgan Securities PLC

Receiving agencies

Private Sector

  • XP Power Limited

Loan description

Bank of China contributions to USD 255 million 2022 syndicated revolving credit facility for unspecified purposes with XP Power

Interest type•Variable Interest RateMaturity•4 years

Narrative

Full Description

Project narrative

In the first half of 2022, a syndicate of six banks — including the Bank of China (BOC) — entered into a $255 million USD syndicated Revolving Credit Facility (RCF) agreement with XP Power Limited — a Singapore-incorporated and headquartered manufacturer and supplier of power control systems that is listed on the London Stock Exchange — for unspecified purposes. This loan carried a maturity period of four years with a one-year extension option (to June 2017), a final maturity date of June 2026, with no fixed repayment terms until maturity, and an interest rate based on SOFR (initially LIBOR) plus a margin ranging from 1.0%-2.0%, 1.5% to 3.25%, or 1.2% to 2.8% depending on the borrower's Net Debt:Adjusted EBITDA ratio (leverage ratio) for the previous quarter. It also featured a $75 million USD accordion option to increase the RCF to $330 million USD, subject to the approval of the lenders. The non-utilization fee payable for the undrawn portion of the RCF was priced at 40% of the margin applicable to drawn amounts. It had market standard financial covenants, including a Net debt to Adjusted EBITDA covenant limit of no more than 3.0x and a EBITDA to Adjusted Net Finance Expense covenant floor of 4.0x. In addition to BOC, the following lenders contributed to the loan syndicate: HSBC UK Bank PLC, J.P. Morgan Securities PLC, DBS Bank Ltd, Banco de Sabadell S.A., and Commerzbank Aktiengesellschaft. In October 2023, the lenders entered into an amendment agreement with the borrower for the RCF; in the amendment, the financial covenants were modified, namely increasing the Net debt to Adjusted EBITDA covenant limit to 3.5x until December 31, 2024, then returning to 3.0x and reducing the EBITDA to Adjusted Net Finance Expense covenant floor to 3.0x until September 30, 2025, then returning to 4.0x.

Staff comments

1. The individual contributions of the six lenders to this $255 million USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($42,500,000 USD) to the syndicated loan.