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Overview

Bank of China contributes to £380 million GBP Tranche A2 of £2 billion GBP syndicated loan facilities to Macquarie Group for general corporate purposes (Linked to Record ID#93172, #93174, and #93175)

Commitment Year•2018Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 13, 2018
Last repayment (originally scheduled)
Jun 12, 2021

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • ING Bank N.V.

Receiving agencies

Private Sector

  • Macquarie Group Limited

Loan description

2018 £2 billion GBP syndicated loan facilities for Macquarie Group in Australia

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On June 13, 2018, it was announced that a syndicate of banks — including the Bank of China (BOC) — had entered into £2 billion GBP ($3.53 billion AUD; $2.65368 billion USD) of syndicated loan facilities with Macquarie Group Limited for green projects and general corporate purposes. BOC, the Sydney Branch of Hong Kong and Shanghai Banking Corporation (HSBC), and ING Bank N.V. served as jointed mandated lead arrangers and bookrunners. HSBC and ING Bank also served as the green structure advisers. The loan facilities were divided into four tranches: a £250 million GBP ($331.71 million USD) Tranche A1, a revolving facility with a tenor (maturity) of three years intended for green projects; a £380 million GBP Tranche A2, a revolving facility with a tenor (maturity) of three years, intended for general corporate purposes; a £250 million GBP Tranche B1, a term loan with a tenor (maturity) of five years intended for green projects; and a £1.120 billion GBP Tranche B2, a term loan with a tenor (maturity) of five years intended for general corporate purposes. BOC, HSBC, and ING each reportedly contributed £83.33 million GBP ($110.57 million USD) to the two green tranches, £250 million GBP Tranche A1 and £250 million GBP Tranche B2. Record ID#93172 captures BOC's contribution to the £250 million GBP Tranche A1. Record ID#93174 captures BOC's contribution to the £250 million GBP Tranche B1. Record ID#93173 captures BOC's contribution to the £380 million GBP Tranche A2. Record ID#93175 captures BOC's contribution to the £1.120 billion GBP Tranche B2. Macquarie would use the combined £500 million GBP green loan tranches, Tranche A1 and B1, for green projects with clear environmental benefits and following the four pillars in the Asia Pacific Loan Market Association's (APLMA) Green Loan Principles. Potential beneficiaries under these tranches included renewable energy, energy efficiency, waste management, green structures, and clean transportation projects.

Staff comments

1. BOC, HSBC, and ING are the only specifically identifiable lenders of these loan facilities. Other lenders are unknown. This issue merits further investigation. 2. Macquarie Group Limited is an Australia-headquartered and listed global financial services group and the world's largest infrastructure asset manager.