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Overview

ICBC NZ contributes to a $220 million NZD syndicated loan to Heritage Lifecare for the acquisition of the Golden Healthcare portfolio

Commitments (Constant USD, 2023)$50,564,561
Commitment Year•2019Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandOverseas Jurisdiction•New ZealandSector•HealthFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
Start (actual)
Nov 1, 2019
End (actual)
Nov 1, 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

  • 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

  • Heritage Lifecare Limited

Security / collateral agents

Private Sector

  • Westpac New Zealand Limited (WNZL)

Loan description

2019 syndicated $220 million NZD loan from ICBC NZ for the acquisition of the Golden Healthcare portfolio

Interest type•Unknown

Narrative

Full Description

Project narrative

In or around 2019, a syndicate of three banks — including the Industrial and Commercial Bank of China (New Zealand) Limited (ICBC New Zealand), the Bank of New Zealand (BNZ), and Westpac New Zealand Limited (WNZL) — provided an approximately $220 million NZD syndicated facility to Heritage Lifecare Limited — a New Zealand aged care and retirement operator majority owned by Australian private equity firm Adamantem Capital — for the acquisition of the portfolio of Golden Healthcare Group, a New Zealand privately-owned aged care company. WNZL served as the agent and security trustee. The proceeds of the loan were used by the borrower for the acquisition of Golden Healthcare's portfolio and other purposes. Christchurch-based Golden Healthcare's portfolio consisted of four properties, including two standalone aged care facilities and two integrated aged care and retirement villages, with 345 aged care beds and 45 retirement village units. The purchase was announced in November 2019. The acquisition was completed in November 2019.

Staff comments

1. The individual contribution of the three lenders to this $220 million NZD syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($73,333,333.3333 NZD) to the syndicated loan. 2. AidData has coded this transaction as a collateralized loan because Westpac New Zealand Limited was selected as the security trustee (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan. 3. The commitment date is unknown. Given that the acquisition was completed in November 2019, AidData has assumed the loan was committed in 2019 and has coded this as the commitment date, with the commitment_date_estimated? field marked as True.