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Overview

ICBC contributes $75 million USD to $2 billion USD syndicated revolving credit facility to Flex Ltd for general corporate and working capital purposes in 2021 (Linked to Record ID#108167, #108169 and #108170)

Commitments (Constant USD, 2023)$69,160,623
Commitment Year•2021Country of Activity•United StatesDirect Recipient Country of Incorporation•SingaporeSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 7, 2021
Last repayment (originally scheduled)
Jan 6, 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

  • Banco Bradesco S.A.
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • BNP Paribas S.A.
  • Citibank, N.A.
  • DBS Bank Ltd.
  • Deutsche Bank AG
  • HSBC Bank USA, N.A.
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • KBC Bank N.V.
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Raiffeisen Bank International AG
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Truist Bank, N.A.
  • U.S. Bank National Association
  • UniCredit Bank AG
  • Wells Fargo Bank N.A.

State-owned Banks

  • State Bank of India (SBI)

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)
  • Bank of China (BOC)
  • China CITIC Bank International Limited (formerly CITIC Ka Wah Bank)

Receiving agencies

Private Sector

  • Flex Ltd. (formerly known as Flextronics International Ltd)

Loan description

2021 China CITIC Bank International, ABC, ICBC, and BoC contributions to $2 billion USD syndicated revolving credit facility to Flex Ltd for general corporate and working capital purposes

Interest rate (t₀)•1.62625%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On January 7, 2021, financial close was reached on a deal in which a syndicate of 24 banks — including Bank of China, ICBC, Agricultural Bank of China, and China CITIC Bank — entered into a $2 billion USD syndicated loan agreement with Flex Ltd., an electronics manufacturing services company headquartered in Austin, Texas and legally domiciled in Singapore. The maturity of the loan is 5 years and the interest rate is LIBOR plus an applicable margin. The proceeds were used by the borrower for general corporate purposes and working capital, supporting Flex’s ongoing operational liquidity and business continuity across its global electronics design, manufacturing, and logistics operations. While Bank of China contributed $95 million USD (Record ID#108167), ICBC contributed $75 million USD (Record ID#108168), Agricultural Bank of China contributed $50 million USD (Record ID#108169), and China CITIC Bank contributed $50 million USD to this loan (Record ID#108170), the following lenders also participated: Bank of America ($107.5 million USD), Citibank ($107.5 million USD), Banco Santander ($95 million USD), Barclays Bank ($95 million USD), BNP Paribas ($95 million USD), HSBC ($95 million USD), JPMorgan Chase ($95 million USD), Mizuho Bank ($95 million USD), MUFG Bank ($95 million USD), Sumitomo Mitsui Banking Corporation ($95 million USD), The Bank of Nova Scotia ($95 million USD), Truist Bank ($95 million USD), U.S. Bank ($95 million USD), UniCredit Bank AG ($95 million USD), Deutsche Bank ($75 million USD), DBS Bank ($75 million USD), Standard Chartered Bank ($75 million USD), Banco Bradesco ($50 million USD), KBC Bank ($50 million USD), and Raiffeisen Bank International ($50 million USD).

Staff comments

1. The entirety of the 2021 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/866374/000086637421000006/axflexxex1001creditagreeme.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/fmyjv2ie0fnhwg0narzwz/Source_ID_218564.pdf?rlkey=96njuaayyo7nmwoktd7fd3j7v&st=6wo05s9x&dl=0 2. Flex Ltd. (previously known as Flextronics International Ltd. or Flextronics) is an American headquartered multinational diversified manufacturing company. It is the third largest global electronics manufacturing services (EMS), original design manufacturer (ODM) company by revenue, behind only Pegatron for what concerns original equipment manufacturers. Flex's U.S. corporate headquarters are located in Austin, Texas. The company has manufacturing operations in over 30 countries, totaling about 172,000 employees. 3. AidData calculated the interest rate as the sum of the 6-month average LIBOR rates in January 202 plus the applicable margin determined by the company's credit ratings (BBB- or 1.375%).