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Overview

China Construction Bank contributes to a $1.35 billion USD syndicated sustainability-linked revolving credit facility to Brambles for refinancing purposes (Linked to Record ID#101867)

Commitments (Constant USD, 2023)$141,737,870
Commitment Year•2022Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2022
Last repayment (originally scheduled)
Jul 31, 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

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Bank of America Corporation
  • BNP Paribas S.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • HSBC Bank PLC
  • ING Group N.V.
  • Sumitomo Mitsui Banking Corporation (SMBC)

Receiving agencies

Private Sector

  • Brambles Limited

Loan description

CCB contribution to August 2022 $1.35 billion USD syndicated sustainability-linked revolving credit facility to Brambles for refinancing purposes

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

In August 2022, a syndicate of nine banks — including China Construction Bank Corporation (CCB) — signed a $1.350 billion USD syndicated sustainability-linked revolving credit facility (RCF) agreement with Brambles Limited — an Australian logistics company listed on the Australian Securities Exchange — for refinancing purposes. This loan carried a maturity period of five years and and a final maturity date in 2028, with two one-year extension options, subject to lenders' consent. As a sustainability-linked loan (SLL), this loan measured Brambles' performance against its 2025 sustainability targets, namely a 25% reduction in injury frequency at workplace, women holding at least 40% of management roles, and working with food banks to give rescued food to 10 million people, and its roadmap to net-zero greenhouse gas emissions by 2040 with pricing adjustments depending on whether the borrower met or failed to those goals. The proceeds were to be used by the borrower to refinance $992.2 million USD of bilateral loans. Record ID#101866 captures CCB's contribution to the loan syndicate. In addition to CCB, the following banks contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Bank of America, BNP Paribas S.A., Commzerbank AG, HSBC Bank, ING Group N.V., and Sumitomo Mitsui Banking Corporation (SMBC). ANZ served as a sustainability coordinator, while it and the other lenders served as mandated lead arrangers. Then, in July 2023, the lending syndicate entered into an amendment agreement on the RCF with the borrower; in this agreement, the first one-year extension was exercised, extending the maturity period of this RCF by one year for a new final maturity date of August 2028 (a new maturity period of six years). Record ID#101867 captures CCB's contribution to this debt rescheduling.

Staff comments

1. The individual contribution of the nine lenders to this $1.35 billion USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of CCB by assuming that each lender contributed an equal amount ($150,000,000 USD) to the loan syndicate.