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Overview

ICBC NZ contributes $80 million NZD to a $450 million NZD syndicated loan to TGH Property for the Ruakura Superhub Project and refinancing purposes (Linked to Record ID#98989)

Commitments (Constant USD, 2023)$52,320,093
Commitment Year•2021Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandOverseas Jurisdiction•New ZealandSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 5, 2021
Last repayment (originally scheduled)
Nov 5, 2024

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 (New Zealand) Limited (ICBC New Zealand) (ICBC NZ)

Cofinancing agencies

Private Sector

  • Bank of New Zealand (BNZ)
  • Westpac New Zealand Limited (WNZL)

Receiving agencies

Private Sector

  • TGH Property Limited

Collateral providers

Private Sector

  • HRH Limited Partnership

Loan description

2021 ICBC NZ contributes to a $450 million NZD syndicated loan to TGH Property for the Ruakura Superhub Project and refinancing purposes

Interest type•UnknownMaturity•3 years

Collateral

This loan was secured by against pari passu security agreements in favor of the lenders over a diversified pool of property assets, including those owned by the HRH Limited Partnership, a hotel company and wholly-owned subsidiary of Waikato Raupatu Lands Trust.

Narrative

Full Description

Project narrative

On November 5, 2021, a syndicate of three banks — the Industrial and Commercial Bank of China (New Zealand) Limited (ICBC NZ), Westpac New Zealand Limited (WNZL), and the Bank of New Zealand (BNZ) — entered into a $450 million NZD syndicated facility agreement with TGH Property Limited — a property company and wholly-owned subsidiary of Waikato Raupatu Lands Trust — for the Ruakura Superhub Project and refinancing purposes. This loan carried an initial maturity period of three years and maturity date of November 5, 2024 and was a evergreen (revolving) facility. ICBC NZ contributed $80.0 million NZD, BNZ contributed $205.0 million NZD, and WNZL, which served as facility agent, contributed $165.0 million NZD. BNZ also provided a $15 million NZD overdraft facility to TGH Property as part of the syndicated loan. This loan was secured by (i.e. collateralized) against pari passu security agreements in favor of the lenders over a diversified pool of property assets, including those owned by the HRH Limited Partnership — a hotel company and wholly-owned subsidiary of Waikato Raupatu Lands Trust. The proceeds of this facility were to be used by the borrower to refinance previous debt facilities, namely a $40.0 million NZD facility for HRH Limited Partnership and a $100.0 million NZD facility for The Base Limited, which was committed in May 2020 and included a $30.0 million NZD contribution from ICBC NZ, as captured by Record ID#98989. The proceeds were also used by the borrower for the construction of the Ruakura Superhub Project, a multi-use development in Waikato, North Island, which includes the construction of an inland port and upgrade of infrastructure to support local logistics; it included logistics, industrial, commercial, retail, residential, and green space. It was expected to reduce long-distance transportation by 65,000 trips annually, reduce carbon dioxide emissions by 600 tons, and create 12,000 local jobs. As of March 31, 2022, $211.0 million NZD had been drawn down under the facility. As of March 31, 2023, $330.6 million NZD had been drawn down under the facility.

Staff comments

1. This project is also known as the Waikato Inland Port Project. 2. The Waikato Raupatu Lands Trust was established to receive cultural, commercial, and other redress assets for the Te Whakakitenga o Waikato, the tribal parliament and authority of Waikato iwi (Māori nation/people), under the 1995 Raupatu Lands settlement for grievances under the Treaty of Waitangi which amounted to $170 million NZD. The beneficiaries of the Lands Trust are members of Waikato iwi and the purpose of the trust is to promote the educational, spiritual, economic, social, and cultural advancement of Waikato iwi and its various hapu (clans).