Bank of China contributes to a €1.5 billion EUR syndicated revolving credit facility to SAP for refinancing and general corporate purposes

Project narrative

On September 15, 2009, a syndicate of 27 banks — including the Bank of China (BOC) — entered into a €1.5 billion EUR syndicated revolving credit facility (RCF) agreement with SAP AG — a German multinational software company known for its enterprise resource planning (ERP) software based in Walldorf, Baden-Württemberg and listed on the Frankfurt Stock Exchange — for refinancing and general corporate purposes. The RCF carried a maturity period of three years and a variable interest rate based on EURIBOR or LIBOR, dependent on the currency of drawing, plus a margin of 110 basis points (bps) to 160 bps, depending on the amount drawn. The RCF carried a commitment fee of 44 bps per annum on the unused available credit. The proceeds were to be used to refinance a €1 billion EUR syndicated RCF signed in November 2004 and for general corporate purposes. In addition to BOC, the following lenders contributed to the loan syndicate: Deutsche Bank AG, JPMorgan Chase Bank, N.A., Royal Bank of Scotland (RBS), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), BNP Paribas S.A., the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Barclays Capital, Citibank, Commerzbank AG, Credit Suisse AG, DZ Bank AG, Deutsche Postbank AG, Landesbank Hessen-Thüringen (Helaba), ING Group, Intesa Sanpaolo S.p.A., Landesbank Baden-Württemberg (LBBW), Nomura Holdings, Nordea Bank, Société Générale S.A. (SocGen), Banco Santander, S.A., Sumitomo Mitsui Banking Corporation (SMBC), WestLB AG, Bank of America Merrill Lynch (BAML), KfW, Morgan Stanley, and UBS AG. Deutsche, JPMorgan, and RBC acted as bookrunners. BBVA, BNP Paribas, BOC, BTMU, Barclays Capital, Citi, Commerzbank, Credit Suisse, DZ Bank, Deutsche Postbank, Helaba, ING, Intesa Sanpaolo, LBBW, Nomura, Nordea, SocGen, Santander, SMBC, and WestLB served as mandated lead arrangers. BAML, KfW, Morgan Stanley, and UBS joined as arrangers. The loan was oversubscribed and increased from the individual target. As of December 31, 2009, there were no borrowings outstanding under the facility. On December 15, 2010, a syndicate of banks — not including BOC — entered into a €1.5 billion EUR RCF that replaced (refinanced) the September 2009 RCF.