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Overview

Bank of China contributes to a £1.255 billion syndicated revolving credit facility to Land Securities for the 2015 Land Securities Refinancing Project

Commitments (Constant USD, 2023)$250,936,255
Commitment Year•2015Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 30, 2015
Last repayment (originally scheduled)
Mar 28, 2020

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

  • Abbey National Treasury Services Plc (ANTS) (Santander Global Banking and Markets)
  • Banco de Sabadell, S.A.
  • Citibank, N.A.
  • HSBC Bank PLC
  • Lloyds Bank plc (formerly Lloyds TSB Bank PLC)
  • UBS Group AG

State-owned Banks

  • Royal Bank of Scotland (RBS)

Receiving agencies

Private Sector

  • Land Securities Group Plc (Landsec)

Loan description

Bank of China contributes to a £1.255 billion syndicated revolving credit facility to Land Securities for the 2015 Land Securities Refinancing Project

Interest rate (t₀)•1.149%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On March 30, 2015, it was announced that a syndicate of eight banks — including the Bank of China (BOC) — entered into a £1.255 billion GBP secured syndicated Revolving Credit Facility (RCF) agreement with Land Securities Group Plc (Landsec) — a British commercial property development and real estate investment trust — for the 2015 Land Securities Refinancing Project. This RCF carried a maturity period of five years with an option to extend by two years (pending approval from each participating lender) and an initial interest rate of LIBOR plus a margin of 75 basis points (bps), with stepped margin increases dependent on utilization amounts. This loan was secured. The proceeds of this loan were to be used by the borrower to refinance and replace its existing £1.085 billion GBP syndicated RCF. In addition to BOC, the following lenders contributed to the loan syndicate: Lloyds Banking Group, Santander Global Banking and Markets, Royal Bank of Scotland (RBS), HSBC Bank, Citibank N.A., Banco de Sabadell, S.A., and UBS AG. Lloyds, Santander, RBS, and HSBC served as bookrunners and mandated lead arrangers. Citibank served as mandated lead arranger. BOC, Sabadell, and UBS served as lead arrangers. Lloyds served as facility agent and coordinator.

Staff comments

1. The individual contribution of the eight lenders to this £1.255 billion GBP syndicated RCF is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount (£156,875,000 GBP) to the syndicated loan. 2. A 6-month LIBOR was assumed. The average 6-month LIBOR for March 2015 was 0.399%. Therefore, the interest rate has been coded as 0.399% plus 0.75%, or 1.149%.