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Overview

ICBC (Europe) contributes to a €715.63 million EUR syndicated loan to CDP RETI for refinancing purposes

Commitments (Constant USD, 2023)$104,878,483
Commitment Year•2020Country of Activity•ItalyDirect Recipient Country of Incorporation•ItalyOverseas Jurisdiction•LuxembourgSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 5, 2020
Start (actual)
May 19, 2020
End (actual)
May 19, 2020
Last repayment (originally scheduled)
May 5, 2025

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe))

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • HSBC Continental Europe S.A. (formerly HSBC France S.A.)
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • Mediobanca - Banca di Credito Finanziario S.p.A.
  • UniCredit S.p.A. (formerly UniCredito Italiano S.p.A.)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • CDP RETI S.p.A.

Loan description

BoC (Milan) and ICBC (Europe) contributions to May 2020 €715.63 million EUR syndicated loan to CDP RETI for refinancing purposes in Italy

Interest rate (t₀)•0.885%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On May 5, 2020, a syndicate of eight banks — including the Milan Branch of Bank of China (BOC) and the Industrial and Commercial Bank of China (Europe) S.A. (ICBC (Europe)) — entered into a €715,634,700.00 EUR syndicated loan agreement with CDP RETI S.p.A. — an Italy-incorporated joint venture holding company for electric and gas investments owned by Italian state-controlled Cassa Depositi e Prestiti S.p.A. (CDP) (59.1% equity stake) and England and Wales-incorporated State Grid Europe Limited (SGEL), a wholly-owned subsidiary of the State Grid Corporation of China (SGCC) (35.0% equity stake) — for refinancing purposes. The facility carried a maturity period of five years and a final maturity date of May 5, 2025, a variable interest rate based on the 6-month EURIBOR plus a margin of 105 basis points (bps), with a floor of zero, and an arrangement fee of 40 bps. The facility agreement had certain mandatory prepayment events, including a change of control and partial mandatory prepayment in case of certain disposals of the share capital of Snam S.p.A. or Terna S.p.A. or Italgas S.p.A. or the sale of any entitlement under future rights issues by those three companies, or extraordinary distributions received by CDP RETI from those three companies. The proceeds were to be used by the borrower to repay (refinance) any outstanding amount under a 2014 €750 million EUR term loan and a 2017 €187,634,699.63 EUR term loan, with the loan fully drawn down on May 19, 2020 to repay that debt. Record ID#109162 captures BOC's contribution. Record ID#109163 captures ICBC (Europe)'s contribution. In addition to BOC and ICBC (Europe), the following lenders contributed to the loan syndicate: UniCredit S.p.A., Intesa Sanpaolo S.p.A., the Milan Branch of Crédit Agricole Corporate and Investment Bank (CACIB), Mediobanca - Banca di Credito Finanziario S.p.A., BNP Paribas Succursale Italia, and HSBC France S.A..

Staff comments

1. The individual contributions of the eight lenders to this €715,634,700.00 EUR syndicated loan are unknown. Therefore, to estimate the contributions of BOC and ICBC (Europe), AidData has assumed that each contributed equally (€89,454,337.5 EUR) to the loan syndicate.