Bank of China contributes to debt rescheduling — via a one-year maturity extension — of a €2 billion EUR syndicated revolving credit facility to Naturgy Energy Group for refinancing purposes (Linked to Record ID#104257)

Project narrative

In June 2021, a syndicate of 21 banks — including the Bank of China (BOC) — entered into a €2.000 billion EUR syndicated sustainability-linked revolving credit facility (RCF) agreement with Naturgy Energy Group S.A. — a Spanish natural gas and electrical energy utilities company — for refinancing purposes. This loan carried a maturity period of three years with two one-year extension options, a final maturity date in June 2024, and and an interest rate of EURIBOR plus a margin of 0.30%. As a sustainability-linked loan (SLL), this RCF featured a Key Performance Indicator (KPI) based on the company’s electricity generation greenhouse gas emissions; based on the borrower's performance, the RCF's pricing would be adjusted, with an annual contribution to social projects destined for the Naturgy Foundation, specifically the rehabilitation and energy adaptation of vulnerable families’ homes, based on savings from the performance. This loan was amend and extend of an existing €1.750 billion EUR syndicated credit facility. The proceeds were to be used by the borrower for refinancing purposes. Record ID#104257 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Bank of America, Barclays Bank Plc, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), BNP Paribas S.A., CaixaBank, S.A., Citibank, Crédit Agricole Group, Deutsche Bank AG, HSBC Bank PLC, ING Group N.V., IMI-Intesa Sanpaolo, JPMorgan Chase Bank, N.A., Mizuho Bank, MUFG Bank, Ltd., Natixis, Banco Santander, S.A., Société Générale S.A. (SocGen), the Bank of Nova Scotia (Scotiabank), Sumitomo Mitsui Financial Group (SMFG), and UniCredit S.p.A. All these lenders served as bookrunners. CaixaBank served as facility agent. In 2022, the lending syndicate — still including BOC — entered into an amendment agreement with the borrower; in the amendment agreement, the lenders extended the maturity period of the €2 billion EUR RCF by one year — for a new maturity period of four years — and set the new final maturity date to 2025. Record ID#104258 captures BOC's contribution to this debt rescheduling.