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Overview

Bank of China contributes to a $8 billion USD syndicated loan to Amazon.com for general corporate purposes

Commitments (Constant USD, 2023)$1,000,000,000
Commitment Year•2023Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 3, 2023
Last repayment (originally scheduled)
Jan 3, 2024

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

  • Australia and New Zealand Banking Group (ANZ)
  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • DBS Bank Ltd.
  • Mizuho Bank, Ltd.
  • Toronto-Dominion Bank (TD Bank Group)

State-owned Banks

  • National Westminster Bank Plc (NatWest)

Receiving agencies

Private Sector

  • Amazon.com, Inc.

Loan description

Bank of China contributes to a $8 billion USD syndicated loan to Amazon.com for general corporate purposes

Interest rate (t₀)•5.55829%Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On January 3, 2023, a syndicate of eight banks — including the Los Angeles Branch of the Bank of China (BOC) — entered into a $8.0 billion USD syndicated term loan agreement with Amazon.com, Inc. — a Delaware-incorporated American multinational technology and e-commerce company founded by Jeff Bezos, headquartered in Seattle, Washington, and listed on the Nasdaq Stock Market — for general corporate purposes. This loan carried a maturity period of 364 days (one year) with an extension option for another 364 days (January 2024) and an interest rate based on SOFR plus a margin of 0.75% (in the event of a maturity extension, the maturity would increase to 1.05%). This loan was unsecured. The proceeds were to be used by the borrower for general corporate purposes such as working capital, capital expenditures, acquisitions, payment of fees and expenses associated with the loan. In addition to BOC LA Branch, the following lenders contributed to the loan syndicate: the New York Branch of the Toronto-Dominion Bank, Australia and New Zealand Banking Group (ANZ), the New York Branch of Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), Crédit Agricole Corporate and Investment Bank (CACIB), DBS Bank Ltd., Mizuho Bank, Ltd., and National Westminster Bank Plc (NatWest). Toronto Dominion (Texas) LLC served as administrative agent. TD Securities (USA) LLC served as sole lead arranger. TD Securities (USA), ANZ, New York Branch of BBVA, BOC LA Branch, CACIB, DBS Bank, Mizuho Bank, and NatWest served as joint bookrunners. TD Securities (USA) served as syndication agent. ANZ, New York Branch of BBVA, BOC LA Branch, CACIB, DBS Bank, Mizuho Bank, and NatWest served as co-documentation agents. As of February 3, 2023, the entire $8.0 billion USD balance was outstanding. This loan was fully repaid as of December 31, 2023

Staff comments

1. The full loan agreement is accessible via https://www.dropbox.com/scl/fi/w955zjmfesto3llhtphw1/EX-10.7.pdf?rlkey=h61o6ifxi5yoknhsasedpo5nq&st=09plsrr6&dl=0 2. The individual contributions of the eight lenders to this $8 billion USD syndicated loan are unknown. For the time being, to estimate BOC's contribution, AidData has assumed that each lender committed equally ($1,000,000,000 USD) to the loan syndicate.