Bank of China provides a $60 million NZD loan to Queenstown Airport Corporation Limited for unspecified purposes

Project narrative

On April 30, 2018, the Bank of China (BOC) entered into a $60,000,000 NZD facility (loan) agreement with Queenstown Airport Corporation Limited (QAC) — the operator of Queenstown Airport and Wānaka Airport and joint venture owned by the Queenstown Lakes District Council (QLDC) (75.01%) and Auckland Airport Holdings (No.2) Limited (an entity owned by Auckland International Airports Limited) (24.99%) — for unspecified purposes. This facility carried a maturity of five years and a final maturity of April 29, 2023. It was secured by (i.e. collateralized against) a general security agreement over QAC's assets, undertakings, and any uncalled capital. No funds were drawn down under this facility by June 30, 2019. Then, between July 1, 2019 and June 30, 2020, QAC and BOC reduced the value of the facility from $60 million NZD to $30 million NZD. For the fiscal year ending on June 30, 2020, QAC had drawn down $15 million NZD under the downsized facility. For the fiscal year ending on June 30, 2021, QAC had drawn down $30 million NZD under the facility. Between July 1, 2021, and December 31, 2021, QAC drew down another $15 million NZD under the facility. BOC's lending to QAC became a source of local political controversy. As reported by the local news website Crux, in November 2019, QAC acquired land near the main runway of the Queenstown Airport, Lot 6, to support future airport expansion. However, by July 2020, it was unclear how QAC would pay for the $100 million NZD to $200 million NZD, as its accounts did not appear that QAC could afford the expansion. Crux speculated that BOC could be a potential lender to QAC for the Lot 6 purchase, and noted that QAC official website was only published in two languages — English and Chinese — and BOC may see commercial or strategic value in offering to finance even if the expansion would actually be necessary. We Love Wakatipu Incorporated Society, a Queenstown-based group, opposed the expansion of the air noise from the airport, arguing that accepting long-term funding from BOC would lead to a loss of control of the airport by local stakeholders. QAC filed a complaint to New Zealand Media Council about Crux's articles; QAC accused Crux of publishing untrue, opinionated, and misleading statements about the acquisition of Lot 6. The New Zealand Media Council ruled in favor of QAC's complaint against Crux.