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Overview

Bank of China contributes to the $70 million NZD revolving cash loan of a $280 million NZD syndicated loan to Oregon Group for refinancing purposes (Linked to Record ID#99113, #99114, and #99115)

Commitments (Constant USD, 2023)$10,214,910
Commitment Year•2015Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2015

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of New Zealand (BNZ)

State-owned Commercial Banks

  • Bank of China (New Zealand) Limited (BOC New Zealand)
  • China Construction Bank Corporation (CCB)
  • Industrial and Commercial Bank of China (New Zealand) Limited (ICBC New Zealand) (ICBC NZ)

Receiving agencies

Private Sector

  • Oregon Group Limited

Loan description

December 2015 $280 million NZD syndicated loan to Oregon Group for refinancing purposes in New Zealand

Interest rate (t₀)•3.6%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

In December 2015, a syndicate of five banks — including the Bank of China (BOC), the Bank of China (New Zealand) Limited (BOC New Zealand), China Construction Bank Corporation (CCB), Industrial and Commercial Bank of China (New Zealand) Limited (ICBC New Zealand), and the Bank of New Zealand (BNZ) — entered into a $280 million NZD syndicated loan agreement with Oregon Group Limited — a New Zealand-based investment holding company for the Tiong family of Malaysia involved in forestry, wood processing, property development, salmon farming and plastics manufacturing — for refinancing purposes. This loan was divided into a $210 million NZD term loan and a $70 million NZD revolving cash facility. This loan carried an interest rate ranging from 3.6% to 5.78% for the 2016 fiscal year. The proceeds were to be used to replace a $210 million NZD term loan and $70 million NZD revolving cash facility from HSBC and BNZ. Record ID#99108 captures BOC's contribution to the $210 million NZD term loan. Record ID#99109 captures BOC New Zealand's contribution. Record ID#99110 captures CCB's contribution. Record ID#99111 captures ICBC New Zealand's contribution. Record ID#99112 captures BOC's contribution to the $70 million NZD revolving cash loan. Record ID#99113 captures BOC New Zealand's contribution. Record ID#99114 captures CCB's contribution. Record ID#99115 captures ICBC New Zealand's contribution.

Staff comments

1. The individual contribution of the five lenders to this $70 million NZD syndicated loan is unknown. For the time being, AidData has estimated the contribution of the Chinese state-owned banks by assuming that each lender contributed an equal amount ($14,000,000 NZD) to the syndicated loan. 2. The "Oregon Group more than doubles annual profit" states that the interest rate ranged from 3.6% to 5.78% for the 2016 fiscal year. It is unclear whether the $210 million NZD term loan and a $70 million NZD revolving cash facility had separate rates. For now, AidData has coded 3.6% as the interest rate, as it represents a minimum estimate in any case.