Narrative
Full Description
Project narrative
On December 13, 2019, a syndicate of 25 banks — including the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) — signed an unsecured $10 billion USD revolving credit facility (RCF) agreement with Royal Dutch Shell plc, replacing Shell's existing $8.84 billion USD RCF. This $10 billion USD was RCF was divided into a five-year $8 billion USD RCF and a one-year $2 billion USD RCF, with each facility featuring two one-year extension options at the discretion of each lender. Record ID#92184 captures BOC's contribution to the $8 billion USD RCF. Record ID#92189 captures BOC's contribution to the $2 billion RCF. Record ID#92187 captures ICBC's contribution to the $8 billion USD RCF. Record ID#92188 captures ICBC's contribution to the $2 billion USD RCF. The $10 billion USD RCF carried an interest rate based initially on LIBOR, but, under the agreement, as early as a year after signing, the LIBOR-based interest rate would be replaced by the Secured Overnight Financing Rate (SOFR) in anticipation of the cessation of LIBOR. Additionally, the interest and fees on the facility would be linked to Shell's progress towards its three-year target to reduce its net carbon footprint by 2% to 3% based on its 2016 emissions as Shell sought to reduce its net carbon footprint of its energy products by 20% by 2035 and 50% by 2035 and meet the goals of the Paris Agreement. In addition to BOC and ICBC, the following banks participated in this syndicated loan: Barclays Bank plc, Bank of America, Australia and New Zealand Banking Group (ANZ), Banco Santander, BNP Paribas, Citibank, Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB), Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Lloyds Bank, Mizuho Bank, Morgan Stanley, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corp (SMBC), Société Générale S.A., Standard Chartered Bank, TD Securities, UBS AG, and Wells Fargo. Bank of America and Barclays Bank acted as the joint coordinators for the facility.
Staff comments
1. The individual contributions of the 25 lenders to this $8 billion USD RCF are unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that the 25 lenders each contributed an equal amount ($320,000,000 USD) to the loan syndicate. 2. At the time of this loan, Royal Dutch Shell plc was incorporated in England and Wales and had its headquarters in The Hague and listings listed on the London, Amsterdam, and New York stock exchanges (see "Shell signs innovative $10 billion revolving credit facility").