Bank of China contributes to a €5 billion EUR syndicated revolving credit facility for Daimler Truck Holding to support its spin-off from its parent company Daimler AG (Linked to Record ID#104824)

Project narrative

On August 6, 2021, a syndicate of 31 banks — including the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) — entered into a €5.0 billion EUR syndicated revolving credit facility (RCF) agreement with Daimler Truck Holding AG — a German commercial vehicle manufacturer — to support its spin-off from its parent company Daimler AG. This loan carried a maturity period of five years with two one-year extension options and a final maturity date of August 2026. The proceeds were to be used by the borrower to support it and its subsidiary's Daimler Truck AG's spin-off from its parent company Daimler AG (now known as Mercedes-Benz Group AG), which was completed in December 2021 with a listing on the Frankfurt Stock Exchange; the borrower did not intend to draw down on the RCF. Record ID#104823 captures BOC's contribution. Record ID#104824 captures ICBC's contribution. In addition to BOC and ICBC, the following lenders contributed to the loan syndicate: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), BNP Paribas S.A., BofA Securities, Inc., Crédit Agricole Group, Deutsche Bank, Goldman Sachs Group Inc., HSBC Bank PLC, ING Group N.V., JPMorgan Chase Bank, N.A. (Chase Bank), Landesbank Baden-Württemberg (LBBW), Mizuho Bank, Ltd., MUFG Bank, Ltd., Banco Santander, S.A., Bank of Nova Scotia (Scotiabank), Skandinaviska Enskilda Banken AB (SEB), Sumitomo Mitsui Banking Corporation (SMBC), Bank of New York Mellon Corporation (BNY Mellon), Bayerische Landesbank (BayernLB), CaixaBank, S.A., CIBC World Markets Inc., Commerzbank AG, DBS Bank, Landesbank Hessen-Thüringen (Helaba), Royal Bank of Canada (RBC), Standard Chartered Bank PLC, TD Securities Inc., UniCredit S.p.A., La Caja de Ahorros y de Pensiones de Barcelona (La Caixa), Australia and New Zealand Banking Group (ANZ), Société Générale S.A. (SocGen), and Wells Fargo Bank N.A.. By December 31, 2023, the RCF had not been drawn down and the two extension options had expired. Then, in late March 2024, a syndicate of 29 banks — including ICBC — entered into a €5 billion EUR syndicated RCF with Daimler Truck AG for refinancing purposes. This RCF carried a maturity period of five years with two one-year extension options and a final maturity date of March 16, 2029, while RCF could be increased by €1.5 billion EUR during a specified period at the discretion of the lenders. The proceeds were to be used by the borrower to replace (refinance) the August 2021 €5 billion RCF, to improve the borrower's long-term liquidity, and hedge its first class credit rating; a drawdown under the RCF was not planned. BOC exited the RCF, as did ANZ, CaixaBank, SocGen, and Wells Fargo, while Bayerische Landesbank (BayernLB), Morgan Stanley, and Landesbank Hessen-Thüringen (Helaba) joined in. BNP Paribas, LBBW, and Deutsche Bank served as coordinator. BBVA, BNP Paribas, BofA Securities, Crédit Agricole, Deutsche Bank, Goldman Sachs, HSBC, ING, JPMorgan, LBBW, Mizuho, MUFG, Santander, Scotiabank, SEB, and SMBC served as bookrunners. ICBC, BNY Mellon, BayernLB, CaixaBank, CIBC World Markets, Commerzbank, DBS, Helaba, Morgan Stanley, RBC, Standard Chartered, TD Securities, and UniCredit served as mandated lead arrangers.