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Overview

ICBC contributes $25 million USD to $400 million USD syndicated revolving credit facility to Lululemon for general corporate and refinancing projects

Commitments (Constant USD, 2023)$23,053,541
Commitment Year•2021Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 14, 2021
Last repayment (originally scheduled)
Dec 14, 2026

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • BNP Paribas S.A.
  • Citibank, N.A.
  • HSBC Bank Canada
  • Royal Bank of Canada (RBC)
  • Wells Fargo Bank N.A.

Receiving agencies

Private Sector

  • Lululemon Athletica Inc.

Loan description

ICBC contributes to $400 million USD syndicated revolving credit facility to Lululemon in 2021

Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On December 14, 2021, financial close was reached on a deal in which a syndicate of 13 banks—including the Industrial and Commercial Bank of China (ICBC)—entered into a $400 million USD syndicated revolving credit facility with Lululemon Athletica Inc., a Delaware-based multinational athletic apparel retailer. The loan's maturity is five years, and the interest rate was based on LIBOR plus an applicable margin based on Operating Lease Adjusted Leverage Ratio between 1% to 1.35%. The proceeds of this loan were used by Lululemon to refinance existing debts and for general corporate purposes, which may include the company's ongoing capital expenditures and other operational needs. While ICBC contributed $25 million USD to this loan, the following lenders also participated: Bank of America, N.A., HSBC Bank Canada, Royal Bank of Canada, Citibank, N.A., BofA Securities, Inc.

Staff comments

1. Lululemon Athletica Inc. is a Delaware-based multinational company that specializes in athletic apparel. The company was founded in 1998 in Vancouver, Canada, and has since grown to become one of the leading brands in the athletic apparel industry, with a focus on yoga-inspired clothing. 2. AidData cannot estimate the interest rate because of the lack of information on the operating lease adjusted leverage ratio. However, the rate is between 1% to 1.35%. Hence, AidData can estimate the range of the interest rate by adding SOFR rate on December 14, 2021 for the loan is (0.05% + applicable margin1%-1.35%) 1.05% to 1.4%.