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Overview

Bank of China contributes to the three-year tranche of a 2019 syndicated loan to Blackmores for general corporate purposes (Linked to Record ID#93272, #93275, #93276, and #101250)

Commitment Year•2019Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 8, 2019
Last repayment (originally scheduled)
Apr 7, 2022

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 Bank Australia Limited
  • National Australia Bank Limited (NAB)
  • Westpac Banking Corporation

Receiving agencies

Private Sector

  • Blackmores Limited

Loan description

April 2019 syndicated loan to Blackmores for general corporate purposes in Australia

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On April 8, 2019, a syndicate of four banks — the Bank of China (BOC), HSBC Bank Australia Limited, National Australia Bank Limited (NAB), and Westpac Banking Corporation — entered into a syndicated loan agreement with Blackmores Limited — an Australian health supplements firm — for general corporate purposes. The syndicated loan was divided into three tranches: a tranche with a three-year maturity and final maturity in April 2022, a tranche with a four-year maturity and final maturity in April 2023, and a tranche with five-year maturity and final maturity in April 2025. The proceeds of these funds were intended to be used for general corporate purposes. Record ID#93274 captures BOC's contribution to the tranche with a maturity date of April 2022. Record ID#93275 captures BOC's contribution to the tranche with a maturity date of April 2023. Record ID#93276 captures BOC's contribution to the tranche with a maturity date of April 2024. Then, in April 2022, a syndicate of four banks — the Bank of China (BOC), Westpac Banking Corporation, HSBC Bank, and National Australia Bank Limited (NAB) — entered into a $150 million AUD syndicated loan agreement with Blackmores Limited — an Australian health supplements firm — for refinancing purposes. This loan was divided into a $75 million AUD sustainability-linked Tranche A with a maturity period of three years and a final maturity date in March 2025 and a $75 million AUD Tranche B with a maturity period of five years and a final maturity date in March 2027. The proceeds were to be used for refinancing purposes, namely refinancing the borrower's existing debt. Record ID#101250 captures BOC's contribution to the $150 million AUD syndicated loan.

Staff comments

1. On February 21, 2017, Bank of China Sydney (BOC) entered into a $30 million AUD facility (loan) agreement with Australian health supplements firm Blackmores Limited. This facility carried a maturity period of four years and a final maturity date of March 1, 2021 (see pg.13 of "Blackmores Limited Half-Year Report for the period ending 31 December 2016"). It is unclear whether these 2019 loan and its tranches were the result of a cancellation or restructuring of the 2017 facility, or simply represented entirely new commitments. Since it appears BOC participated in these new funding arrangements in a syndicate and the maturity dates are different than the 2017 facility, AidData has determined that it either represented a restructuring or new commitment; since there is no risk of duplication, as the value of the 2019 funding arrangement, AidData has coded the 2019 funding arrangement into three tranches of a single loan. This issue merits further investigation.