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Overview

ICBC NZ contributes to a $750 million NZD syndicated loan to Summerset Group Holdings for refinancing purposes (Linked to Record ID#92633 and #92640)

Commitments (Constant USD, 2023)$100,493,554
Commitment Year2020Country of ActivityNew ZealandDirect Recipient Country of IncorporationNew ZealandOverseas JurisdictionNew ZealandSectorHealthFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 24, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (New Zealand) Limited (ICBC New Zealand) (ICBC NZ)

Cofinancing agencies

Private Sector

  • ANZ Bank New Zealand Limited
  • Bank of New Zealand (BNZ)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • Westpac New Zealand Limited (WNZL)

Receiving agencies

Private Sector

  • Summerset Group Holdings Limited

Collateral providers

Private Sector

  • Summerset Group Holdings Limited

Loan description

ICBC NZ contributes to a $750 million NZD syndicated loan to Summerset Group Holdings for refinancing purposes

Interest typeUnknown

Collateral

The loan facility was secured by securities held a security trustee, namely a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each New Zealand-incorporated guaranteeing Summerset Group member that is not a registered retirement village under the Retirement Villages Act 2003; a second-ranking registered mortgage over the land and permanent buildings owned (or leased under a registered lease) by each New Zealand-incorporated guaranteeing Summerset Group member that is a registered retirement village under the Retirement Villages Act 2003 (behind a first-ranking registered mortgage in favor of the Statutory Supervisor); a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each Australian-incorporated guaranteeing Summerset Group member; a General Security Deed, which secures all assets of the New Zealand-incorporated guaranteeing Summerset Group members, but in respect of which the Statutory Supervisor has first rights to the proceeds of security enforcement against all assets of the registered retirement villages to which the security trustee is entitled; a General Security Deed, which secures all assets of the Australian-incorporated guaranteeing Summerset Group members; and a Specific Security Deed in respect of each marketable security of Summerset Holdings (Australia) Pty Limited, held by Summerset Holdings Limited.

Narrative

Full Description

Project narrative

Effective January 24, 2020, a syndicate of five banks — including the Industrial and Commercial Bank of China (New Zealand) (ICBC NZ) — entered into a $750 million NZD syndicated loan facility to refinance the debt of Summerset Group Holdings Limited, a New Zealand retirement village and elderly care service provider. In addition to ICBC NZ, the following banks contributed to the syndicate: ANZ Bank New Zealand, Bank of New Zealand, Commonwealth Bank of Australia (CBA; CommBank), and Westpac New Zealand Limited (WNZL). The syndicated loan facility was to have $315.0 million NZD expire in March 2022, $120 million AUD expire in November 2023, and $310 million NZD expire in November 2024. The loan facility was secured by securities held a security trustee, namely a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each New Zealand-incorporated guaranteeing Summerset Group member that is not a registered retirement village under the Retirement Villages Act 2003; a second-ranking registered mortgage over the land and permanent buildings owned (or leased under a registered lease) by each New Zealand-incorporated guaranteeing Summerset Group member that is a registered retirement village under the Retirement Villages Act 2003 (behind a first-ranking registered mortgage in favor of the Statutory Supervisor); a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each Australian-incorporated guaranteeing Summerset Group member; a General Security Deed, which secures all assets of the New Zealand-incorporated guaranteeing Summerset Group members, but in respect of which the Statutory Supervisor has first rights to the proceeds of security enforcement against all assets of the registered retirement villages to which the security trustee is entitled; a General Security Deed, which secures all assets of the Australian-incorporated guaranteeing Summerset Group members; and a Specific Security Deed in respect of each marketable security of Summerset Holdings (Australia) Pty Limited, held by Summerset Holdings Limited. This syndicated loan replaced a previous $500 million NZD syndicated loan facility and added ICBC NZ and WNZL as bankers to Summerset Group. On August 23, 2021, a syndicate of six banks — including the Bank of China (New Zealand) (BOC New Zealand) and the Industrial and Commercial Bank of China (New Zealand) (ICBC NZ) — signed a sustainability-linked $700 million NZD syndicated loan facility to refinance the debt of Summerset Group Holdings Limited, a New Zealand retirement village and elderly care service provider, effective October 1, 2021. Specifically, the $700 million NZD facility refinanced a $315 million NZD facility with a final maturity date of March 31, 2022 that is captured by Record ID#92632. It also contributed additional funding of approximately $385 million NZD denominated in Australian dollars. Record ID#92633 captures BOC New Zealand's contribution and Record ID#92640 captures ICBC NZ's contribution.

Staff comments

1. The individual contributions of the five lenders to this $750 million NZD syndicated loan facility are unknown. For the time being, AidData has estimated the contribution of ICNZ by assuming that the five lenders each contributed an equal amount ($150,000,000 NZD) to the loan syndicate. 2. Summerset Group Holdings Limited is a retirement village operator and developer of villages in New Zealand.