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Overview

Bank of Communications contributes to a $300 million USD syndicated loan to NMC Health for working capital purposes

Commitments (Constant USD, 2023)$25,949,687
Commitment Year•2019Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesOverseas Jurisdiction•United KingdomSector•HealthFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 11, 2019

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

  • China Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Private Sector

  • Afrasia Bank Limited
  • Banco de Sabadell, S.A.
  • Bank One, N.A. (later merged with JPMorgan Chase)
  • CaixaBank, S.A. (Formerly Criteria CaixaCorp)
  • First Commercial Bank Limited
  • Mediobanca International (Luxembourg) S.A.
  • Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)
  • Mizuho Bank, Ltd.
  • Société Générale S.A. (SocGen or Societe Generale)

State-owned Banks

  • Bank of Taiwan

Receiving agencies

Private Sector

  • N.M.C Health Care (L.L.C)

Loan description

2019 syndicated $300 million USD loan from Bank of Communications and others to NMC Health in the UAE

Interest type•Unknown

Narrative

Full Description

Project narrative

On June 11, 2019, a syndicate of 12 lenders — including the London Branch of the Bank of Communications (BoComm) — entered into a $300 million USD (Dhs1,101,750,000 AED) syndicated term loan agreement with N.M.C Health Care (L.L.C), — a healthcare chain and distribution business in the United Arab Emirates (UAE) headquartered in Abu Dhabi and listed on the London Stock Exchange — for working capital purposes to enable continuing day-to-day trade. The syndicate included Société Générale S.A. (SocGen) as arranger, Bank of Communications (BoComm) (London Branch), Banco de Sabadell, Mizuho Bank, CaixaBank, Mega International Commercial Bank through its Paris and London branches, Mediobanca International (Luxembourg), First Commercial Bank (London), Bank of Taiwan (London), Bank One, and AfrAsia Bank. On April 8, 2020, the United Kingdom High Court placed NMC Health into administration due to alleged fraud committed by its founder and chairman of the board. As of November 19, 2020, $119.3 million USD (Dhs438.0 million AED) had been drawn down. As a result, the syndicated loan was among the claims that had to be addressed by the administrators. BoComm had a claim of $36,357,655.00 USD (presumably including the principal plus interest and fees). Restructuring was ongoing as of September 2021.

Staff comments

1. For the time being, AidData is estimating Bank of Communication's (BoComm) contribution ($25,000,000 USD) to the lending syndicate by dividing the total amount of financing ($300 million USD) by the number of known lenders (12).