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Overview

Agricultural Bank of China contributes $425 million USD to $6 billion USD syndicated loan to Comcast for acquisition of Sky Plc (Linked to Record ID#109751)

Commitments (Constant USD, 2023)$427,675,925
Commitment Year•2018Country of Activity•United KingdomDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•United StatesSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 22, 2018
Start (actual)
Oct 9, 2018
End (actual)
Oct 9, 2018
Last repayment (originally scheduled)
Aug 21, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Bank of Nova Scotia (Scotiabank)
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Fifth Third Bank
  • ING Bank N.V.
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • Lloyds Bank plc (formerly Lloyds TSB Bank PLC)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • SunTrust Bank
  • U.S. Bank National Association
  • Wells Fargo Bank N.A.

State-owned Banks

  • National Westminster Bank Plc (NatWest)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Comcast Corporation

Loan description

ABC and BOC contributions to $6 billion USD syndicated loan to Comcast for acquisition of Sky Plc in the United Kingdom in 2018

Interest rate (t₀)•3.5125%Interest type•Variable Interest RateMaturity•4 years

Narrative

Full Description

Project narrative

On August 22, 2018, financial close was reached on a deal in which a syndicate of 17 banks — including New York Branch of Agricultural Bank of China (ABC) and the New York Branch of Bank of China — entered into a $6 billion USD syndicated loan agreement with Comcast Corporation — a Philadelphia, Pennsylvania-based American telecommunications conglomerate — for the acquisition of British media and telecommunications conglomerate and pay television (TV) company Sky plc. The loan carried a maturity period of 4 years and the interest rate was LIBOR plus an applicable margin based on the borrower's debt ratings. The use of proceeds was to finance Comcast’s all-cash offer for the entire issued and to-be-issued share capital of Sky plc. The proceeds were used by the borrower to support its strategic acquisition of Sky plc, a British media and telecommunications company. Comcast’s offer aimed to expand its international footprint and consolidate its position in the global media landscape. On October 9, 2018, Comcast completed the acquisition of Sky plc. While Agricultural Bank of China contributed $425 million USD (Record ID#109750) to this loan and Bank of China contributed $425 million USD for this loan (Record ID#109751), the following lenders also participated: Société Générale ($475 million USD), Sumitomo Mitsui Banking Corporation ($475 million USD), Mizuho Bank, Ltd. ($425 million USD), Santander Bank, N.A. ($475 million USD), ING Bank, a branch of ING-DiBa AG ($425 million USD), National Westminster Bank plc ($425 million USD), The Bank of Nova Scotia ($425 million USD), Commerzbank AG, New York Branch ($350 million USD), Fifth Third Bank ($250 million USD), Intesa Sanpaolo S.p.A., New York Branch ($250 million USD), Lloyds Bank plc ($250 million USD), SunTrust Bank ($100 million USD), U.S. Bank National Association ($75 million USD), Bank of America, N.A. ($375 million USD), and Wells Fargo Bank, National Association ($375 million USD).

Staff comments

1. The entirety of the 2018 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/902739/000095010318009879/dp94689_ex1001.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/ov31cu3j7t383gxv6ar9y/Source_ID_223412.pdf?rlkey=g3vnso8w5lky966s004ydbz1k&st=m6aocn9s&dl=0 2. Comcast Corporation is an American multinational telecommunications and media conglomerate headquartered in Philadelphia, Pennsylvania. It is the second-largest broadcasting and cable television company in the world by revenue and the largest pay-TV, cable TV, and home Internet service provider in the United States. Sky Group Limited is a British media and telecommunications conglomerate owned by Comcast and headquartered in London. It has operations in the United Kingdom, Ireland, Germany, Austria, Switzerland and Italy. 3. AidData has coded the margin based on Comcast’s A- credit rating at the time of the loan.