ICBC New Zealand contributes to a $700 million NZD syndicated loan to Summerset Group Holdings Limited for refinancing purposes (Linked to Record ID#92632 and #92633)

Project narrative

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 (captured by linked Record ID#92632) and contributed additional funding of approximately $385 million NZD denominated in Australian dollars. The facility carried a mix of four and five year maturities. In addition to BOC NZ and ICBC NZ, the following banks contributed to the loan syndicate: ANZ Bank New Zealand, Bank of New Zealand, Commonwealth Bank of Australia (CBA; CommBank), and Westpac New Zealand Limited (WNZL). Record ID#92633 captures BOC New Zealand's contribution and Record ID#92640 captures ICBC NZ's contribution. This sustainability linked loans feature provisions in line with the Asia Pacific Loan Market Association's established framework for sustainable financing solutions included targets for construction waste diversion from landfill, the roll out of memory care suites and the continuation of dementia friendly accreditation, and an emissions reduction target that will align with, and encompass, other initiatives. The facility also included funds for future development, including expansion in Australia. The loan facility was secured by securities held a security trustee 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 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. The syndicated loan facility was to have $50 million NZD and $130 million AUD expire in September 2025 and $315 million NZD and $185 million AUD expire in September 2026.