Bank of China (New Zealand) contribute to a $210 million NZD syndicated loan to PGG Wrightson for general corporate and working capital purposes

Project narrative

On December 15, 2017, a syndicate of five banks — the Bank of China (New Zealand) Limited (BOC NZ), the Bank of New Zealand (BNZ), the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Westpac New Zealand Limited, and ANZ Bank New Zealand Limited — entered into a $210.00 million NZD syndicated bank facility agreement with PGG Wrightson Limited — a New Zealand-based agricultural supply company whose majority shareholder (50.22%) is Singapore-based Chinese firm Agria Corporation — for general corporate and working capital purposes. This loan carried a maturity period of approximately 2.583 years and a final maturity date of July 31, 2020. This syndicated loan was divided into two tranches: a $150.0 million NZD term debt facility and a $60.00 million NZD working capital facility. This loan was secured by (i.e. collateralized against) a general security deed and mortgage over all of PGG Wrightson Limited's wholly-owned New Zealand and Australian assets, including the shares held in its South American subsidiaries and equity accounted investees, to a security trust. ANZ Bank New Zealand Limited served as security trustee. The proceeds of the facility were to be used by the borrower for general corporate activities, seasonal fluctuations in working range, and the Go range of livestock product receivables. In May or June 2019, PGG Wrightson fully repaid and cancelled the syndicated loan using proceeds from the sale of its Seed & Grain business.