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Overview

China Construction Bank contributes to $725 million USD syndicated sustainability-linked revolving credit facility for refinancing purposes and to provide working capital for its Antwerp and Rotterdam refineries

Commitments (Constant USD, 2023)$53,429,073
Commitment Year•2020Country of Activity•Europe, regionalDirect Recipient Country of Incorporation•CyprusOverseas Jurisdiction•SwitzerlandSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 28, 2020
Last repayment (originally scheduled)
Jan 27, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • CA Indosuez (Switzerland) S.A.
  • Coöperatieve Rabobank U.A. (Rabobank)
  • Credit Suisse AG
  • DBS Bank Ltd.
  • ING Belgium N.V./S.A.
  • Mizuho Bank Europe N.V. (formerly Mizuho Bank Nederland N.V.)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Raiffeisen Bank International AG
  • Société Générale S.A. (SocGen or Societe Generale)
  • Sumitomo Mitsui Trust Bank, Limited (SMTB)
  • UniCredit Bank AG

State-owned Banks

  • KfW IPEX-Bank GmbH

Receiving agencies

Private Sector

  • Gunvor Group Ltd

Security / collateral agents

Private Sector

  • ING Belgium N.V./S.A.

Loan description

China Construction Bank contributes to $725 million USD syndicated sustainability-linked revolving credit facility for Gunvor Group for refinancing purposes and to provide working capital for its Antwerp and Rotterdam refineries in 2020

Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On January 28, 2020, a syndicate of 14 banks — including the Zurich Branch of China Construction Bank Corporation (CCB) — entered into a $725 million USD sustainability-linked borrowing base facility agreement with Gunvor Group Limited — a Cyprus-incorporated, Switzerland-headquartered energy trading and commodities firm — for refinancing purposes and to provide working capital for its Antwerp and Rotterdam refineries. The loan carried a one-year maturity. As a sustainability-linked facility, the interest rate was dependent on Gunvor's year-on-year improvement in 15 different sustainability criteria, with Key Performance Indicators (KPIs) focusing on environment, social impact, and governance, addressing reductions in carbon dioxide emissions, waste and water management, improvements to personnel safety at refineries, transparency reporting related to feedstock origination, and others. If Gunvor achieved them, it would receive a discount on its interest rate, while a premium would be added if it failed. Savings from the lower interest rate would go to supplement for Gunvor Foundation, Gunvor's not-for-profit entity dedicated to philanthropic giving. The proceeds were to be used to refinance its existing sustainability-linked facility and to provide for the working capital requirements of Gunvor's refinery in Antwerp, Belgium and its refinery in Rotterdam, the Netherlands. In addition to CCB, other members of the syndicate include the Geneva Branch of ING Belgium N.V./S.A., the London Branch of DBS Bank, Société Générale (SocGen), Coöperatieve Rabobank U.A. (Rabobank), ABN Amro Bank N.V., CA Indosuez (Switzerland), Credit Suisse, Mizuho Bank Europe N.V., the London Branch of Sumitomo Mitsui Trust Bank, Ltd., UniCredit Bank AG, KfW IPEX-Bank, MUFG Bank, and Raiffeisen Bank International AG. ING acted as sole Coordinator and Active Bookrunner and as Security Agent, Facility Agent and Fronting Bank.

Staff comments

1. The individual contribution of the 14 lenders to this $725 million USD syndicated loan are unknown. For the time being, to estimate the contributions of CCB, AidData has assumed each lender contributed an equal amount ($51,785,714.2857 USD) to the syndicated facility.