Tai Fung Bank participates in a $450 million syndicated loan to Food Investment SpA for the acquisition of Australis Seafoods

On June 5, 2019, Food Investment SpA — a special purpose vehicle and subsidiary of the Legend Holdings Corporation-owned Joyvio Agriculture Development Co. (or ‘Joyvio Group’) — signed a $450 million syndicated loan agreement with a group of banks for the acquisition of up to 100% of Australis Seafoods S.A. (a major participant in the Chilean salmon industry). Members of the loan syndicate included the Macau Branch of Bank Of China Limited (mandated lead arranger, bookrunner, offshore security agent, and original lender), Beijing Haidian Sub-Branch of Bank of China Limited (lead signed registrar, book runner, PRC security agent, and original lender), Shanghai Pilot Free Trade Zone Branch of China Minsheng Banking Corp., Ltd. (mandated lead arranger and original lender), and Tai Fung Bank Limited (lead arranger and original creditor). Then, on October 18, 2019, Australis Seafoods S.A. issued a corporate guarantee in support of the loan that was issued to Food Investment SpA. Joyvio Group, a wholly-owned subsidiary of Legend Holdings, executed the acquisition of an 94.47% equity stake Australis Seafoods S.A. for $880 million in January 2019. Joyvio Group claimed that the acquisition will guarantee consistent supply of salmon, optimizing its supply chain and allowing it to effectively serve its customers as the demand for salmon increases.

Additional details

1. The individual contributions of Macau Branch of Bank Of China Limited, the Beijing Haidian Sub-Branch of Bank of China Limited, and Tai Fung Bank Limited to the loan syndicate are unknown. For the time being, AidData assumes equal contributions ($112.5 million) across the four members of the syndicate. 2. China Minsheng Banking Corp., Ltd. is a privately owned bank. 3. Tai Fung Bank Limited is a subsidiary of Bank of China. 4. Legend Holdings Corporation is a partially state-owned company. Chinese Academy of Sciences State-owned Asset Management Limited Liability Company holds a 29% ownership stake in Legend Holdings. 5. AidData has coded this transaction as a collateralized loan because Bank of China was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan. 6. Australis Seafoods S.A. owns and operates fish farms located in the Chile. The company, led by Ricardo Daniel Misraji Vaizer, Moises Benjamin Saravia Ortiz and Derek Kohn Bruggemann, is based in Santiago. Australis Seafoods S.A. produces approximately 64,000 tons of salmon per year, accounting for 9% of Chile’s total salmon production. In its last financial year, the company recorded net revenues of $399 million and profits of $73 million. 7. Joyvio Group, through its subsidiaries, produces and sells fresh fruits, processed foods, and food materials in China and internationally. The company was founded in 2010 and is based in Beijing, China.

Number of official sources

5

Number of total sources

8