Bank of China contributes to GBP 1.1 billion revolving credit facility to Marks & Spencer as working capital (Linked to Record ID#99666, #99667)

Project narrative

On September 29, 2011, Marks & Spencer (M&S), a British retailer, signed a GBP 1.325 billion syndicated bank facility with a five (5) year maturity. Bank of China's (BOC) involvement in this facility is currently unknown. Then, on March 16, 2016, M&S renegotiated the loan into a GBP 1.1 billion revolving credit facility with a confirmed contribution by BOC (#99665). This facility had a maturity of five (5) years, but was extended by one (1) year in 2017 to April 15, 2022 (#99666), and again by one (1) year in 2018 to April 15, 2023 (#99667). On December 26, 2021, M&S and BNP Paribas renegotiated the facility into a GBP 850 million revolving credit facility linked to the company's net-zero sustainability efforts. BOC's involvement in this new loan is unconfirmed. The revolving credit facility captured in this project had one financial covenant, consisting of M&S's pledge to maintain a certain ratio of earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) to interest plus rents payable, measured on a semiannual basis. On April 28, 2020, the lending syndicate agreed to relax this covenant due to the contemporary adverse financial conditions. M&S claimed that this facility, in addition to various smaller loans, provided the company with the undrawn credit necessary to weather the volatile conditions caused by the COVID-19 pandemic. Eleven (11) institutions contributed to the lending syndicate. Bank of China (BOC), BNP Paribas, HSBC, Lloyds Bank, MUFG Bank, NatWest Markets, and Sumitomo Mitsui Financial Group (SMFG) acted as bookrunners. Citibank, KBC Bank, Morgan Stanley, and Societe Generale acted as lenders.