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Overview

ICBC contributes to a $285 million USD syndicated loan for Allco Asset Finance to support the purchase of aircraft

Commitments (Constant USD, 2023)$133,802,378
Commitment Year•2008Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 17, 2008
Last repayment (originally scheduled)
Apr 15, 2018

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.

State-owned Banks

  • Hamburg Commercial Bank (HSOB) (Formerly HSH Nordbank AG)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Allco Asset Finance Limited

Guarantors

Private Sector

  • Allco Finance Group Limited

Loan description

ICBC contributions to a $285 million USD syndicated loan for Allco Asset Finance to support the purchase of aircraft

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

Between April 11 and 17, 2008, financial close was reached on a deal in which a syndicate of three banks — the Industrial and Commercial Bank of China (ICBC), the Singapore Branch of BNP Paribas S.A., and the Singapore Branch of HSH Nordbank AG — entered into a $285 million USD syndicated loan agreement with Allco Asset Finance Limited — an Australia-incorporated special purpose vehicle (SPV) and wholly-owned subsidiary of Australian financial services firm Allco Finance Group Limited — for the purchase of aircraft. This loan carried a maturity period of 10 years and the proceeds were to be used to support the purchase of aircraft. As Allco Asset Finance was subject to a deed of cross guarantee with its parent, Allco Finance Group guaranteed any debt of its subsidiary, including this loan. BNP Paribas and HSH Nordbank served as the original bookrunners, while ICBC joined as an equal-status arranger in syndication. On November 4, 2008, Allco Finance Group went into voluntary administration; ostensibly because it was unable to receive extensions on its debt amidst the financial crisis, namely $670 million AUD ($455 million USD) owed to 12 banks, not including $3 billion AUD in lending by various banks to Allco special purpose vehicles, debt that was non-recourse to the parent — such as the $285 million USD loan.

Staff comments

1. The individual contribution of the three lenders to this $285 million USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($95,000,000 USD) to the syndicated loan.