ICBC contributes to a $1.25 billion NZD syndicated loan to Metlifecare for refinancing and growth purposes (Linked to Record ID#99124)

Project narrative

On December 10, 2021, a syndicate of seven lenders — including the Auckland Branch of the Bank of China (BOC) and the Auckland Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $1.25 billion NZD syndicated sustainability-linked loan agreement with Metlifecare Limited — a New Zealand-based retirement village provider owned by Swedish investment firm EQT Partners — for refinancing purposes. This loan consisted of two tranches: a $620.850 million NZD core facility and a $629.150 million NZD development facility, representing $600.0 million NZD of existing debt and $650.0 million NZD of new debt. This loan carried an interest based on the BKBM Bill Rate plus a margin and a line fee. The proceeds were to be used for refinancing purposes and supporting the borrower's growth strategy. This loan was secured by (i.e. collateralized against) a first-ranking general security interest over its assets and a first-ranking mortgage over its land in favor of the security trustee New Zealand Permanent Trustees Limited). Metlifecare Retirement Villages Limited (MRVL), a wholly-owned subsidiary of Metlifecare, also provided a negative pledge in favor of the lenders to not create any charge over its assets or revenues without prior consent to the majority of the beneficiaries. The loan featured three annual performance targets for three material sustainability Key Performance Indicators (KPIs); if Metlifecare met these, it would pay a lower fixed rate on the loan, but a higher fixed rate if it did not. These KPIs were the following: joining the Science Based Targets Initiative to establish a decarbonization target to help limit global warming via annual reductions in greenhouse gas emissions, constructing six new aged care facilities with a 6 Green Star rating from the New Zealand Green Building Council within five years, and increasing the number of dementia care beds in Metlifecare's portfolio by six-fold and making all of its fully operating villages dementia friendly as accredited by Alzheimers New Zealand. Record ID#99124 captures BOC's contribution. Record ID#99125 captures ICBC's contribution. In addition to the two Chinese state-owned banks, the following lenders contributed to the loan syndicate: ANZ Bank New Zealand Limited, Westpac New Zealand Limited, ASB Bank Limited, Bank of New Zealand (BNZ), Perpetual Corporate Trust Limited (as custodian for the Metrics Credit Partners Diversified Australian Senior Loan Fund). As of June 30, 2022, $298.841 million NZD had been drawn under the $620.850 million NZD core facility and $347.841 million NZD had been drawn under the $629.150 million NZD (total of $646.374 million NZD drawn).