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Overview

Bank of China contributes toward $200 million USD syndicated revolving credit facility to RF Capital Group Inc.

Commitments (Constant USD, 2023)$28,816,926
Commitment Year•2021Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 10, 2021
Last repayment (originally scheduled)
Sep 10, 2023

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

  • BMO Capital Markets
  • Canadian Imperial Bank of Commerce (CIBC)
  • Canadian Western Bank (CWB) (CWB Financial Group)

Receiving agencies

Private Sector

  • RF Capital Group Inc.

Loan description

Bank of China contributes toward $200 million USD syndicated revolving credit facility to RF Capital Group Inc.

Interest type•UnknownMaturity•2 years

Narrative

Full Description

Project narrative

On September 10, 2021, the Bank of China (BoC) contributed "significant support" toward a $200 million syndicated revolving credit facility to RF Capital Group Inc., which operates under the Richardson Wealth brand. The exact amount and terms of the Bank of China's contribution, as well as the amount ultimately withdrawn by RF Capital Group Inc., are unknown. However, the initial authorized principal of the facility was USD 125 million, with a further USD 75 million available depending on lender approval under an "accordion provision". The facility had an initial two-year term with additional years available upon lender approval. In addition, the interest rates are known to have been lower than RF Capital Group Inc.'s existing debt. The other syndicated lenders included the Canadian Imperial Bank of Commerce (CIBC) as Sole Bookrunner, Administrative Agent, and Co-lead Arrangers with BMO Capital Markets, and significant support from Canadian Western Bank.

Staff comments

1. It is possible that the Bank of China entity involved in the lending was actually Bank of China's Canadian subsidiary. However, this is not confirmed in the sources. 2. The individual contribution of the four lenders to the USD 125 million guaranteed disbursed funds of this potentially USD 200 million revolving credit facility is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount (USD 31,250,000) to the guaranteed disbursed amount.