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Overview

China Investment Corporation provides a $200 million AUD loan to Goodman Group for refinancing purposes

Commitments (Constant USD, 2023)$216,628,891
Commitment Year•2009Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2009

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 Funds

  • China Investment Corporation (CIC)

Cofinancing agencies

Private Sector

  • Macquarie Bank Limited

Receiving agencies

Private Sector

  • Goodman Limited (Goodman Group)

Loan description

China Investment Corporation contributions to a $200 million AUD loan to Goodman Group for refinancing purposes

Interest type•Unknown

Narrative

Full Description

Project narrative

In June 2009, China Investment Corporation (CIC) — a Chinese state-owned sovereign wealth fund — entered into a $200 million AUD ($158.9 million USD) loan agreement with Goodman Limited (Goodman Group) — an Australian commercial and industrial property and real estate firm — for refinancing purposes. Under the terms of the loan agreement, CIC debt could convert into options with a strike price of $0.40 AUD per share. The proceeds were to be used by the borrower to pay down debt. This $200 million AUD loan was part of a $485 million AUD syndicated finance facility featuring Macquarie Bank. Further details are unknown.

Staff comments

1. China Investment Corporation (CIC) is a state-owned sovereign wealth fund. It wholly owned by the Chinese Government and has its own corporate entity status. The purpose of the CIC is to maximize returns at acceptable risk tolerance and improve the corporate governance of key state-owned financial institutions. It was established in 2007 with about $200 billion of assets under management, a number that grew to $1.2 trillion in 2021.