China Construction Bank contributes to a $2.5 billion CAD syndicated sustainability-linked loan to BCI QuadReal Realty for unspecified purposes

Project narrative

In March 2022, financial close was reached on a deal in which a syndicate of 14 banks — including China Construction Bank Corporation (CCB) — entered into a $2.5 billion CAD senior syndicated sustainability-linked loan (SLL) facility agreement with BCI QuadReal Realty (BQR) — a pooled investment portfolio of real estate and related investments held in trust by and the primary financing entity for Canadian statutory (state-owned) corporation by British Columbia Investment Management Corporation's (BCI) that is managed by Vancouver, British Columbia-headquartered global real estate investment, operating, and development company and wholly-owned subsidiary of BCI, QuadReal Property Group — for unspecified purposes. This loan carried a maturity period of three years. As a SLL, the loan featured two sustainability-linked performance targets related to reductions in greenhouse gas intensity and energy usage, which ratchet pricing that would impact the borrower's borrowing costs positively if the targets were met or negatively if they were missed. This was an amendment and an extension of BQR's existing credit facilities, transitioning them into a SLL. In addition to CCB, the following lenders contributed to the loan syndicate: TD Securities Inc., RBC Capital Markets, Canadian Imperial Bank of Commerce (CIBC), the Bank of Nova Scotia (Scotiabank), Bank of Montreal, National Bank Financial, HSBC Bank Canada, Fédération Des Caisses Desjardins du Québec (FCDQ), Mizuho Bank, Wells Fargo Bank N.A., Deutsche Bank, Bank of America, and Sumitomo Mitsui Banking Corporation (SMBC). TD Securities, RBC Capital Markets, CIBC, Scotiabank, and Bank of Montreal served as co-lead arrangers and joint bookrunners. Toronto-Dominion Bank served as administrative agent and sustainability structuring agent. The other lenders served as participants.