China Construction Bank contributes to debt restructuring — via a two-year maturity extension — of a £375 million GBP revolving credit facility for the Balfour Beatty 2019 Refinancing Project (Linked to Record ID#94815 and #101332)

Project narrative

In October 2019, a syndicate of 10 banks — including China Construction Bank (CCB) — signed a £375 million GBP syndicated revolving credit facility (RCF) agreement with Balfour Beatty plc — a British infrastructure and construction group — for the Balfour Beatty 2019 Refinancing Project. This RCF carried a maturity period of three years with two one-year extensions and a final maturity date of October 2022. The proceeds of this RCF were used to refinance Balfour Beatty's previous £400 million GBP RCF and then for the borrower's general corporate purposes. Record ID#94815 captures CCB's contribution to the 2019 RCF. In addition to CCB, the following banks contributed to the loan syndicate: HSBC Bank PLC, Lloyds Bank, Bank of America, Royal Bank of Canada (RBC), MUFG Bank, Ltd., First Abu Dhabi Bank (FAB), Canadian Imperial Bank of Commerce (CIBC), Crédit Agricole Corporate and Investment Bank (CACIB), and Fifth Third Bank. CCB, Lloyds, and HSBC served as the lead arrangers for the RCF. Lloyds served as facility agent. As of October 19, 2021, the RCF remained undrawn. Then, in October 2021, the 10-bank syndicate — still including CCB — signed an amendment agreement with Balfour Beatty plc for the £375 million GBP RCF; in this amendment agreement, the lenders agreed to extend the £375 million GBP RCF's maturity period by two years (a new maturity period of five years) for a new final maturity date of October 2024 and to convert the facility into a sustainability linked loan (SLL). As a SLL, this RCF carried Key Performance Indicators (KPIs) that measured the borrower's performance on carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score, as determined and monitored by Sustainalytics; the margin of the RCF's interest rate would ratchet upward and downward depending on the borrower's performance on the KPIs. Lloyds served as sustainability coordinator and the facility agent for the SLL RCF. Record ID#95200 captures CCB's contribution to the extension of the 2019 RCF. As of December 31, 2021, the loan was undrawn. As of December 31, 2022, this RCF was undrawn. Then, on June 26, 2023, a syndicate of 12 banks — including CCB — entered into a £475.00 million GBP ($604.79 million USD) syndicated sustainability-linked revolving credit facility (RCF) agreement with Balfour Beatty plc for the Balfour Beatty 2023 Refinancing Project. This RCF carried a maturity period of four years with a one-year extension option and a final maturity date in June 2027. As SLL, this RCF carried KPIs that measured the borrower's performance on carbon emissions, social value generation, and an independent Environmental, Social and Governance (ESG) rating score; the margin of the RCF's interest rate would ratchet upward and downward depending on the borrower's performance on the KPIs. The proceeds were to used by the borrower for refinancing purposes, namely refinancing its existing £375 million GBP RCF that was maturing in October 2024. Each of the 12 lenders contributed £39.58 million GBP ($50.40 million USD) to the loan syndicate. Record ID#101332 captures CCB's contribution to the 2023 RCF. As of June 30, 2023, this RCF was undrawn.