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Overview

Bank of China (London Branch) reschedules — via a two-year maturity extension — a $620 million USD loan to Sinopec Canada Energy Ltd. for unspecified purposes

Commitment Year•2017Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaOverseas Jurisdiction•United KingdomSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 23, 2017
Last repayment (originally scheduled)
May 23, 2019

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 two-year maturity extension — a $620 million USD loan to Sinopec Canada Energy Ltd. for unspecified purposes

Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On May 24, 2016, the London Branch of the Bank of China (BOC) entered into a $620 million USD loan agreement with Sinopec Canada Energy Ltd. — a Canada-based subsidiary of Chinese state-owned oil and gas firm Sinopec — for unspecified purposes. The loan carried a maturity date of one year and a final maturity date of May 23, 2017 and an interest rate at LIBOR plus an unspecified margin. Record ID#94617 captures the loan. Sometime prior to May 23, 2017, BOC entered into an amendment agreement with Sinopec Canada Energy Ltd., in which BOC agreed to extend the maturity period of the loan by two years — for a new total maturity period of three years — to mature on May 23, 2019, and increased the margin of the interest rate. Record ID#110973 captures the rescheduling. As of 2018, $620 million USD was outstanding under the loan. The loan was repaid in full on May 21, 2019

Staff comments

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