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Overview

Bank of China contributes to a £80 million GBP syndicated revolving credit facility to Luceco for refinancing purposes (Linked to Record ID#99485)

Commitments (Constant USD, 2023)$25,264,154
Commitment Year•2021Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2021
Last repayment (originally scheduled)
Sep 30, 2024

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of Ireland Group plc
  • HSBC UK Bank plc

State-owned Banks

  • National Westminster Bank Plc (NatWest)

Receiving agencies

Private Sector

  • Luceco plc

Loan description

Bank of China contributes to a £80 million GBP syndicated revolving credit facility to Luceco for refinancing purposes

Interest rate (t₀)•1.8002%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On October 1, 2021, it was announced that a syndicate of four banks — the Bank of China (BOC), HSBC UK Bank Plc, National Westminster Bank (NatWest), and Bank of Ireland — entered into a £80 million GBP syndicated revolving credit facility (RCF) agreement with Luceco plc — a United Kingdom-based manufacturer and distributor of wiring accessories, LED lighting, and portable power products — for refinancing purposes. This loan carried a maturity period of three years with a two-year extension option, a final maturity date of September 30, 2024, and an interest rate of SONIA plus a margin of 1.75%. It featured financial covenants such as maintaining a net debt leverage of less than 3.0 times adjusted EBITDA and an interest cover of over 4.0 times adjusted EBITA. This RCF featured a £40 million GBP accordion facility option to expand its face value to £120 million GBP over the term. The proceeds were to be used by the borrower to replace/refinance £50 million GBP of existing debt. Record ID#99484 captures BOC's contribution. As of December 31, 2021, £36.8 million GBP had been drawn under this RCF. In 2025, the banking syndicate extended the maturity period of this RCF by one year — to four years — to September 2025. Record ID#99485 captures BOC's contribution to the extension. As of December 31, 2022, £28.2 million GBP had been drawn under this RCF. As of June 30, 2023, £40.1 million GBP had been drawn down under this RCF

Staff comments

1. The individual contributions of the four lenders to this £80 million GBP syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount (£20,000,000 GBP) to the syndicated loan. 2. The average SONIA for October 2021 was 0.0502%. Therefore, the interest rate has been coded as 0.0502% + 1.75% (175 bps) = 1.8002%.