ICBC Standard Bank contributes to a €600 million EUR syndicated backstop facility to PPF Telecom Group in April 2023 for refinancing purposes

Project narrative

On April 19, 2023, a syndicate of 21 banks — including the Prague Branch of the Industrial and Commercial Bank of China (ICBC), Industrial and Commercial Bank of China (Europe) S.A. Oddzial w Polsce, and ICBC Standard Bank plc — entered into a €600 million EUR syndicated backstop facility with PPF Telecom Group B.V. (formerly PPF Arena 1 B.V.) — a Netherlands-incorporated telecommunications company, providing fixed-line and mobile telecommunications company and infrastructure, data services, and internet television in the Czech Republic, Slovakia, Hungary, Bulgaria, and Serbia wholly-owned by Netherlands-incorporated PPF TMT Holdco 2 B.V., wholly-owned by Netherlands-incorporated PPF TMT Holdco 1 B.V. wholly-owned by PPF Group N.V., a Netherlands-incorporated privately-held international diversified investment group headquartered in Prague and wholly-owned by Renáta Kellnerová and the descendants of Czech billionaire Petr Kellner — for refinancing purposes. The facility carried a maturity period of 12 months with two six-month extension options at the borrower's option (with a final potential maturity date of May 20, 2025). The proceeds were allocated to only be used by the borrower to either directly or indirect finance the repayment of an existing €600,000,000 EUR 3.500% notes (Eurobond) due May 20, 2024. Record ID#110250 captures the Prague Branch of ICBC's contribution. Record ID#110251 captures ICBC (Europe)'s contribution. Record ID#110252 captures ICBC Standard Bank. In addition to the Chinese state-owned lenders' contributions, the following lenders contributed to the loan syndicate: Société Générale S.A. (SocGen), UniCredit Bank Czech Republic and Slovakia a.s., Crédit Agricole Corporate and Investment Bank (CACIB), HSBC Continental Europe S.A., the Prague Branch of ING Bank N.V., Všeobecná úverová banka, a.s., pobočka Praha (VUB), Raiffeisen Bank International AG, BNP Paribas S.A., BNP Paribas Fortis S.A./N.V., Credit Suisse AG, Československá obchodní banka, a. s. (CSOB), Goldman Sachs Bank USA, Santander Bank Polska S.A., Citibank Europe plc (CEP), Commerzbank Aktiengesellschaft, pobočka Praha, Erste Group Bank AG (Erste Group), Česká spořitelna, a.s., and the London Branch of JPMorgan Chase Bank, N.A.. SocGen and UniCredit Bank Czech Republic and Slovakia served as global coordinators, bookrunners, mandated lead arrangers, and original lenders. CACIB, HSBC Continental Europe, the Prague Branch of ING Bank, the Prague Branch of VUB, and Raiffeisen Bank International AG served as bookrunners, mandated lead arrangers and original lenders. The Prague Branch of ICBC, the Poland Branch of ICBC (Europe), ICBC Standard Bank, BNP Paribas, BNP Paribas Fortis, Credit Suisse, CSOB, and Goldman Sachs Bank USA served as mandated lead arrangers and original lenders. Santander Bank Polska, Citibank Europe Plc, the Poland Branch of Commerzbank, Erste Group Bank AG, Česká spořitelna, and the London Branch of JPMorgan Chase Bank served as original lenders. The facility was two times oversubscribed in syndication. Circa June 14, 2023, the lending syndicate entered into an amendment agreement with PPF Telecom Group for the €600 million EUR syndicated backstop facility; in the amendment, the lenders offered a further optional maturity until May 2026 — but did not actually extend the facility — and the facility was changed so it the proceeds were allocated to only be used by the borrower to either directly or indirect finance the repayment of the existing €600 million EUR 2.125% notes due January 31, 2025. As of December 31, 2023, the facility was undrawn.