ICBC contributes to a $200 million NZD syndicated loan facility to 2degrees to refinance Huawei debt and construct a 4G network (Linked to Record ID#91165, #91236, #92265, #92266, and #92268)

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 agreement with 2degrees — a New Zealand telecommunications firm — 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. This project captures ICBC's contribution to the syndicated facility, while Record ID#91165 captures BOC's contribution. 2degrees intended to use the majority of the loan proceeds — reportedly $120 million NZD — to repay a $100 million USD credit line from Huawei Technologies (issued in 2011). This Huawei vendor financing arrangement is captured via Record ID#91236. The remaining proceeds of the loan — $45 million NZD — were to be used by the borrower to finance the construction of a 4G long-term evolution (LTE) network. Specifically, the proceeds were to be used to finance cell sites across New Zealand, which were designed to be upgraded to 4G after receiving a software update and network card replacement. Huawei Technologies Co., Ltd. (‘Huawei’) was the implementing agency responsible for project implementation. 2degrees and Huawei signed an agreement in June 2013 in which Huawei agreed to construct a 4G network for 2degrees by early 2014. Huawei had previously constructed 2degrees' 2G and 3G networks. This deal ensured that Huawei would continue as 2degrees' exclusive network equipment provider. The proceeds would also go to improve 2degrees' 3G network. 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 agreement is captured via 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 via 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 via Record ID#92268. 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 unknown.