BoComm contributes $80 million AUD to a 2020 $1 billion AUD syndicated loan to Whitehaven Coal for general corporate purposes (Linked to Record ID#94710, #94712, and #94713)

Project narrative

On February 19, 2020, financial close was reached on a deal in which a syndicate of 12 banks — including Bank of China (BOC), Bank of Communications (BoComm), China Everbright Bank, and the Industrial and Commercial Bank of China (ICBC) — entered into a $1 billion AUD ($670.17 million USD) senior secured revolving corporate debt facility agreement with Whitehaven Coal Limited, an Australian coal mining company. This revolving facility carried a maturity period of three years and six months (3.5 years), a final maturity date of July 31, 2023, and an interest rate of BBSY plus a margin of 200 basis points (bps). This facility was secured by (i.e. collateralized against) a fixed and floating charge over the majority of Whitehaven Coal's assets. This facility refinanced Whitehaven Coal's existing senior secured bank facility. This facility had bilateral bank guarantee facility The proceeds of this loan were to be used by the borrower for general corporate purposes, such as supporting operations at its four Australian coal mines — Maules Creek, Narrabri, Tarrawonga, and Werris Creek. BOC contributed $195.00 million AUD ($130.69 million USD), BoComm contributed $80.00 million AUD ($53.61 million USD), China Everbright Bank contributed $20.00 million AUD ($13.40 million USD), and ICBC contributed $110.00 million AUD ($73.72 million USD) to the loan syndicate. In addition to the Chinese banks, the following lenders contributed the following amounts to the loan syndicate: Sumitomo Mitsui Banking Corporation (SMBC) ($115.00 million AUD; $77.07 million USD), Mizuho Bank ($100.00 million AUD; $67.02 million AUD), National Australia Bank Limited (NAB) ($110.00 million AUD), Westpac Banking Corporation ($110.00 million AUD), MUFG Bank, Ltd. ($50.00 million AUD; $33.51 million USD), Credit Suisse AG ($40.00 million AUD; $26.81 million USD), Caterpillar Financial Services ($40.00 million AUD), and Deutsche Bank AG ($30.00 million AUD; $20.11 million USD). BOC, BoComm, ICBC, Mizuho, MUFG, and SMBC acted as mandated lead arrangers for the facility. Record ID#94710 captures BOC's $195 million AUD contribution. Record ID#94711 captures BoComm's $80 million AUD contribution. Record ID#94712 captures China Everbright's $20 million AUD contribution. Record ID#94713 captures ICBC's $110 million AUD contribution. Analysts noted that, amidst growing reluctance amongst banks to supporting fossil fuel projects, that Whitehaven had lost a number of European banks that previous supported its 2015 refinancing (which BOC, BoComm, and ICBC contributed to, as captured in IDs#94703, #94704, #94705, #94706, #94707, and #94708) and 2017 refinancing, only to be replaced by Asian banks. In 2022, Credit Suisse, after updates to its thermal coal financing rules, ruled out any further loans to Whitehaven. As of June 30, 2020, $120 million AUD of debt drawn under the senior bank facility was repaid and $598 million AUD was redrawn.