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Overview

Bank of China contributes to a $180 million USD syndicated loan to Cisco Systems for supply chain finance and working capital purposes (Linked to Record ID#106072)

Commitments (Constant USD, 2023)$42,871,282
Commitment Year•2010Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2010

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Wells Fargo Capital Finance, LLC

State-owned Banks

  • Royal Bank of Scotland (RBS)

State-owned Commercial Banks

  • China CITIC Bank International Limited (formerly CITIC Ka Wah Bank)

Receiving agencies

Private Sector

  • Cisco Systems, Inc.

Loan description

June 2010 $180 million USD syndicated loan to Cisco Systems for supply chain finance and working capital purposes in the United States

Interest type•Unknown

Narrative

Full Description

Project narrative

In June 2010, a syndicate of four banks — the Bank of China (BOC), China CITIC Bank International Limited, Royal Bank of Scotland (RBS), and Wells Fargo Capital Finance, LLC — entered into a $180 million USD syndicated supply chain finance portfolio accounts receivable purchase programme loan agreement with Cisco Systems, Inc. — a Delaware-incorporated American multinational digital communications technology conglomerate headquartered in San Jose, California listed on the Nasdaq Stock Market — for supply chain finance and working capital purposes. This loan carried a maturity period of until the credit line was used up. The proceeds were to be used by the borrower to offer extended payment terms of 90 days to its largest distributors and system integrators in Europe, Asia, and Australia, allowing end-user projects to incorporate additional Cisco product, accelerate delayed customer information technology (IT) spending, and enhance working capital for its downstream sales channels. Wells Fargo Capital Finance served as mandated lead arranger. BOC, China CITIC Bank International, and RBS served as participating banks. Wells Fargo Capital syndicated over $100 million USD to BOC, China CITIC Bank International, and RBS. Record ID#106071 captures BOC's contribution. Record ID#106072 captures China CITIC Bank International's contribution.

Staff comments

1. It is known that BOC, China CITIC Bank International, and RBS contributed over $100 million USD to this $180 million USD syndicated loan. The individual contributions of the three lenders to this $100 million USD syndicated loan. For the time being, to estimate BOC's contribution, AidData has assumed that each lender contributed equally ($33,333,333.3333 USD) to the loan syndicate.