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Overview

Bank of China (London Branch) reschedules — via a 4.5-year maturity extension — a $3.3 billion USD loan facility to Sinopec Canada Energy Ltd. for unspecified purposes

Commitment Year•2016Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaOverseas Jurisdiction•United KingdomSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 21, 2016
Last repayment (originally scheduled)
Jun 30, 2021

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

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • Sinopec Canada Energy Ltd.

Loan description

Bank of China (London Branch) reschedules — via a 4.5-year maturity extension — a $3.3 billion USD loan facility to Sinopec Canada Energy Ltd. for unspecified purposes

Interest type•Variable Interest RateMaturity•5.5 years

Narrative

Full Description

Project narrative

On December 30, 2015, the London Branch of the Bank of China (BOC) entered into a $3.3 billion USD term loan facility agreement with Sinopec Canada Energy Ltd. for unspecified purposes. The loan carried a maturity period of 12 years and an interest rate based on LIBOR plus an unspecified margin. The facility required the borrower comply with certain customary covenants, including compliance with applicable laws. Record ID#94616 captures the loan. Then, on June 21, 2016, BOC entered into an amendment agreement with Sinopec Canada Energy Ltd., in which BOC agreed to extend the maturity period of the loan by four-and-a-half years — for a new total maturity period of five-and-a-half years — to mature on June 30, 2021 and increased the margin of the interest rate. Record ID#110972 captures the rescheduling. As of 2018, $3.29 billion USD was outstanding under the loan.

Staff comments

1. Although the purpose of the Bank of China's loan was not explicitly specified, it was likely used to expanded operations throughout Sinopec Canada Energy's oil and gas holdings in Canada.