Narrative
Full Description
Project narrative
On April 21, 2017, a syndicate of 16 lenders — including the Industrial and Commercial Bank of China (ICBC) — entered into a €1 billion EUR sustainability-linked revolving credit facility (RCF) agreement with Koninklijke Philips N.V. — a Dutch multinational conglomerate corporation listed on Euronext Amsterdam and the New York Stock Exchange — for general corporate purposes. This loan carried a maturity period of five years with two one-year extension options, a final maturity date of April 21, 2022. As an sustainability-linked RCF, this loan measured the borrower's performance on Environmental, Social, and Governance (ESG) metrics; depending on the borrower's performance the interest rate would ratchet positively or negatively. The proceeds were to be used for general corporate purposes, such as a backstop for its commercial paper programme, and the RCF substituted Philips' existing €1.8 billion EUR facility. Record ID#101952 captures ICBC's contribution. In addition to ICBC, the following lenders contributed to the loan syndicate: ING Group N.V., ABN AMRO Bank N.V., Bank of America Merrill Lynch (BAML), BNP Paribas S.A., Citibank N.A., Deutsche Bank, Goldman Sachs Group Inc., HSBC Bank, J.P. Morgan Chase Bank N.A., Mizuho Bank, Morgan Stanley, MUFG Bank, Ltd., Coöperatieve Rabobank U.A., Société Générale S.A. (SocGen), and UBS AG. ING served as the Sustainability Coordinator. As of December 31, 2017, there was no outstanding amount under this facility. In April 2018, the lending syndicate — still including ICBC — entered into an amendment agreement with the borrower; per the amendment agreement, the lenders extended the maturity period of the loan by one year — for a new maturity period of six years — for a new final maturity date of April 21, 2023, in line with the first extension option. Record ID#101954 captures ICBC's contribution to this debt rescheduling. As of December 31, 2018, there was no outstanding amount under this facility. In February 2019, the lending syndicate — still including ICBC — entered into an another amendment agreement with the borrower; per the amendment agreement, the lenders extended the maturity period of the loan by one year — for a new maturity period of seven years — for a new final maturity date of April 21, 2024, in line with the second extension option. Record ID#101955 captures ICBC's contribution to this debt rescheduling. As of December 31, 2019, there was no outstanding amount under this facility. As of December 31, 2020, there was no outstanding amount under this facility. As of December 31, 2021, there was no outstanding amount under this facility. Then, in March 2022, a syndicate of 15 banks — including ICBC — entered into a €1 billion EUR sustainability-linked revolving credit facility (RCF) agreement with Koninklijke Philips N.V. for refinancing and general corporate purposes. This loan carried a maturity period of five years with two one-year extension options and a final maturity date in March 2027. As an sustainability-linked RCF, this loan measured the borrower's performance on ESG metrics, namely its performance on its 2025 ESG commitments for 'Lives Improved', 'Lives Improved in Underserved Communities', 'Circular Revenues', and 'Operational Carbon Footprint'; depending on the borrower's performance the interest rate would ratchet positively or negatively. The proceeds were to be used to refinance a €1 billion EUR RCF signed in April 2017 and for general corporate and group purposes, including as a backstop for the borrower's commercial paper program. Record ID#102510 captures ICBC's contribution. As of December 31, 2022, there was no outstanding amount under this facility. In 2023, the lending syndicate — still including ICBC — entered into an amendment agreement with the borrower; per the amendment agreement, the lenders extended the maturity period of the loan by one year — for a new maturity period of six years — for a new final maturity date in 2028, in line with the first extension option. Record ID#102510 captures ICBC's contribution to this debt rescheduling. As of December 31, 2023, there was no outstanding amount under this facility.