Overview

China Construction Bank contributes USD 50 million to USD 300 million syndicated term loan to REC for debt refinancing and general corporate purposes

Commitments (Constant USD, 2023)$53,206,319

Commitment Year•2017Country of Activity•SingaporeDirect Recipient Country of Incorporation•SingaporeSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 1, 2017

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
BofA Securities, Inc. (Formerly Bank of America Merrill Lynch (BAML))
China Minsheng Banking Corp Ltd (CMBC)
CTBC Bank (formerly Chinatrust Commercial Bank)
Deutsche Bank AG
DNB Bank ASA (formerly DnB NOR ASA)
Siemens Bank GmbH

Receiving agencies

Private Sector

Renewable Energy Corporation (REC)

Loan description

China Construction Bank contributions to USD 300 million 2017 syndicated term loan for refinancing and general corporate purposes with REC

Interest rate (t₀)•3.25%Interest type•Fixed Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In June 2017, a group of banks -- including China Construction Bank -- agreed to provide a USD 300 million syndicated term loan to solar panel manufactuer Renewable Energy Corporation (REC) for debt refinancing and general corporate purposes. The loan was a bullet loan, carrying a three-year maturity and an all-in interest rate of 325 basis points for mandated lead arrangers contributing USD 20 million or more. Proceeds from the loan will be used to refinance a previous loan supplied by DNB, alongside capital expenditure and general corporate purposes. REC Solar is 56% owned by China National Bluestar Group, which is owned by China National Chemical Corp., a Chinese state-owned enterprise. All members of the syndicate participated as mandated lead arrangers, including Deutsche Bank (USD 102.5 million), DNB Asia (USD 16.5 million), Bank of America Merrill Lynch (USD 21 million), Banco Santander (USD 30 million), China Minsheng Bank (USD 30 million), Siemens Bank (USD 30 million), and CTBC Bank (USD 20 million).