ICBC contributes MXN 275 million loan to MXN 3.05 billion syndicated loan to City Express Hotels for refinancing purposes (Linked to Record ID#102941)

Project narrative

On August 21, 2023, the Industrial and Commercial Bank of China (ICBC) committed MXN 275 million to a syndicated loan refinancing agreement with City Express Hotels. The syndicated loan was worth MXN 3,050,000,000 in total; the other financiers were Scotiabank, Actinver, Banorte, Monex, Banco Ve por Más, Bancoppel, and BBVA. The loan had a maturity of five years with an option for City Express Hotels to extend the repayment term by an additional two years, and had an interest rate based on the TIIE 28 with a 2.25% margin. As of December 31, 2023, City Express Hotels had reportedly drawn down all credit lines available at the time, and had 2,876,162,000 MXN in outstanding debt to the loan syndicate. The proceeds of the loan were meant to pay off the outstanding debt of a previous syndicated loan agreement worth MXN 3,827,000,000 signed between City Express Hotels and Scotiabank, Inbursa, BBVA, and Actinver on June 24, 2021. This loan (captured via Record ID#102941) was intended to help City Express Hotels restructure its debt and recover from the impact of the Covid-19 pandemic on its operation; the loan had a maturity of 5 years, a grace period of 1 year, and an interest rate based on the TIIE 28 with a 4.25% margin. ICBC would join the syndicate for this loan in June 2022 with a contribution of MXN 288 million.