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Overview

Bank of China contributes $25 million AUD to a $315 million AUD syndicated term loan for the Colonial Holding Company 2012 Refinancing Project (Linked to Record ID#97242)

Commitments (Constant USD, 2023)$28,058,380
Commitment Year•2012Country 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
Jan 1, 2012
Last repayment (originally scheduled)
Dec 31, 2014

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

  • Chang Hwa Commercial Bank Limited
  • Citibank, N.A.
  • First Commercial Bank Limited
  • HSBC Bank PLC
  • Jih Sun International Bank, Ltd. (JSIB)
  • Mizuho Corporate Bank, Ltd. (MHCB)
  • Taishin International Bank (Taishin Bank)

State-owned Banks

  • Bank of Taiwan
  • Taiwan Cooperative Bank

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Colonial Finance Pty Limited (CFPL) (formerly Colonial Finance Limited (CFL))

Loan description

Bank of China contributions to a $315 million AUD syndicated term loan for the Colonial Holding Company 2012 Refinancing Project

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

In early 2012, a syndicate of 10 banks — including the Bank of China (BOC) — signed a $400 million AUD syndicated term loan agreement with Colonial Finance Limited — a special purpose vehicle (SPV) wholly owned by Australian insurance and wealth management holding company Colonial Holding Company Limited (CHCL) — for the Colonial Holding Company 2012 Refinancing Project. The loan carried a maturity period of three years. Originally, it had a face value of $400 million AUD, but in 2012, after $315 million AUD had been drawn down, the undrawn portion was cancelled. The proceeds of the loan were to be used by the borrower for refinancing and general corporate purposes. BOC contributed $25 million AUD to the syndicate. Record ID#93935 captures BOC's contribution. In late June 2014, a syndicate of 12 banks — including BOC — entered into a $350 million AUD syndicated term loan facility agreement with Colonial Finance Pty Limited (CFPL) — the newly-renamed CFL — for the Colonial Holding Company 2014 Refinancing Project. This loan carried a maturity period of four years. The proceeds of this facility were to be used by the borrower for refinancing purposes; specifically, it was used to fully repaid and terminate the 2012 $315 million AUD that had been transferred in April 2013 to Colonial Finance Company in accordance with a loan novation agreement. As of June 30, 2014, this facility had been fully drawn down. In addition to BOC, the following lenders contributed to the loan syndicate: Citi, Commonwealth Bank of Australia (CBA), HSBC Bank Plc, Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), Mega International Commercial Bank Co., Ltd., Standard Chartered Bank PLC, Chang Hwa Commercial Bank Limited, Jih Sun International Bank, Ltd. (JSIB), Land Bank of Taiwan Co., Ltd. (LBOT), and Taiwan Cooperative Bank. Citi, CBA, HSBC, Mizuho, and SMBC served as the original bookrunners and mandated lead arrangers. BOC joined in syndication as a lead arranger. Mega International Commercial Bank and Standard Chartered joined in syndication as mandated lead arrangers. Chang Hwa, JSIB, LBOT, and Taiwan Cooperative joined in syndication as arrangers. Record ID#97242 captures BOC's contribution.

Staff comments

1. Colonial Finance Pty Limited (CFPL)'s (formerly Colonial Finance Limited) immediate parent, Colonial Holding Company Limited (CHCL), is 100% owned by Commonwealth Bank of Australia. 2. It is unclear the specific day this loan agreement was signed. "Loan Week, December 30-January 5" suggests that it came between December 30, 2011 and January 5, 2012, while page 46 of "Colonial Holding Company Limited Annual Report 2012" states 2012. For the time being, AidData has coded January 1, 2012 as the commitment date and has marked the commitment_date_estimated? field as True. 3. Page 46 of "Colonial Holding Company Limited Annual Report 2012" mentions that the loan had an original face value of $400 million AUD that was reduced to $315 million USD, but "Loan Week, December 30-January 5" suggests the value was originally $315 million AUD. It may have been the loan only became public when the undrawn portion cancelled was cancelled. This issue merits further investigation.