ICBC NZ provides a $55 million NZD revolving advance loan to the Auckland University of Technology as a flexible finance facility

Project narrative

On December 4, 2019, three banks — Industrial and Commercial Bank of China (New Zealand) Limited (ICBC NZ), ANZ Bank New Zealand Limited, and Westpac New Zealand Limited — entered into three separate revolving advance facility agreements worth a combined $210 million NZD with the Auckland University of Technology — a New Zealand public university — for unspecified purposes. ICBC NZ entered into a $55 million NZD facility with a final maturity date of January 31, 2027. ANZ Bank entered into a $55 million NZD facility with a final maturity date of January 31, 2025. Westpac New Zealand entered into a $110 million NZD facility with a final maturity date of January 31, 2025. These three facilities were unsecured but received a negative pledge arrangement from the borrower. These three facilities were established in accordance with the conditions of the Consent to Borrow granted by the Secretary of Education under Section 192 (4)(d) and (7) of the Education Act 1989. The proceeds of these borrowings were used by the borrower as a flexible finance facility. The weighted average interest rate on the outstanding loan was 3.56% in 2020. The weighted average interest rate on the outstanding loan was 3.84% in 2021. The weighted average interest rate on the outstanding loan was 3.09% in 2022. As of December 31, 2020, $64.850 million NZD had been drawn down and was outstanding under the $210 million NZD revolving advance facilities. As of December 31, 2021, $50 million NZD was outstanding under these facilities. As of December 31, 2022, $40 million NZD was outstanding under these facilities.