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Overview

Bank of China extends the maturity of a $200 million NZD syndicate loan to 2degrees in March 2018

Commitment Year•2018Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2018

Geospatial footprint

Map overview

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This project provided a loan to 2degrees which is headquartered at 136 Fanshawe St L 2, Auckland, 1010, New Zealand. More detailed locational information can be found at: https://www.openstreetmap.org/way/969652656#map=19/-36.84665/174.75762.

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)

Cofinancing agencies

Private Sector

  • Bank of New Zealand (BNZ)
  • ING Bank N.V.

State-owned Banks

  • Kiwibank Limited

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • Two Degrees Mobile Limited (2degrees)

Loan description

Bank of China extends the maturity of a $200 million NZD syndicate loan to 2degrees in March 2018

Interest type•Unknown

Narrative

Full Description

Project narrative

In June 2013, a syndicate of five banks — including the Industrial and Commercial Bank of China (ICBC) and Bank of China (BOC) — signed a $165 million NZD ($131 million USD) syndicate credit facility with New Zealand telecommunications firm 2degrees to refinance its debt to Huawei Technologies Co., Ltd. and construct a 4G network. In addition to BOC and ICBC, the syndicate's members included ING Bank, Kiwibank Limited, and the Bank of New Zealand (BNZ). ING, ICBC, BOC, and Kiwibank contributed a collective $80 million NZD to the facility, while BNZ contributed $85 million NZD. BNZ also arranged the credit facility. The original loan commitment was upsized in March 2014 (by $15 million NZD), January 2015 (by $20 million NZD), and August 2015 (by $15 million NZD) to $200 million NZD. For BOC's contribution to this loan, see linked Record ID#91165; ICBC's contribution is captured by linked Record ID#92411. The majority of the loan proceeds — reportedly $120 million NZD — were intended to be used by 2degrees to repay a $100 million USD credit line from Huawei Technologies provided in 2011. This Huawei vendor financing loan is captured by linked Record ID#91236. The remaining proceeds of the loan — $45 million NZD — were to be used to finance the construction of a 4G long-term evolution (LTE) network for 2degrees. In August 2015, the bank syndicate — still including ICBC and BOC — signed an agreement to refinance a $200 million NZD credit facility with New Zealand telecommunications firm 2degrees. This refinancing is captured by linked Record ID#92265. In July 2017, the bank syndicate — still including ICBC and BOC — extended the maturity date of the facility from June 30, 2018 to January 5, 2019. This maturity extension is captured by linked Record ID#92266. In March 2018, the bank syndicate — still including ICBC and BOC — again extended the maturity date of the facility from January 2019 to January 2020; $10 million NZD retained a January 2019 maturity date. This maturity extension is captured by this project. In July 2018, all amounts under the $200 million NZD were refinanced by a new bank facility; the participants in this new bank facility are unclear.