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Overview

Bank of China contributes to a $670 million AUD syndicated loan to Goodman Fielder for working capital and refinancing purposes

Commitments (Constant USD, 2023)$71,682,822
Commitment Year•2008Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaOverseas Jurisdiction•AustraliaSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 7, 2008
Last repayment (originally scheduled)
May 7, 2011

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

  • Australia and New Zealand Banking Group (ANZ)
  • Bank of America Securities Asia Limited
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • Coöperatieve Rabobank U.A. (Rabobank)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • TD Securities Inc.
  • Westpac Banking Corporation

State-owned Banks

  • WestLB AG

Receiving agencies

Private Sector

  • Goodman Fielder Limited

Loan description

Bank of China contributions to a $670 million AUD syndicated loan to Goodman Fielder for working capital and refinancing purposes

Interest rate (t₀)•8.9383%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On May 7, 2008, a syndicate of 11 banks — including the Sydney Branch of the Bank of China (BOC) — signed a $670 million AUD ($626 million USD) syndicated multi-currency revolving credit facility agreement with Goodman Fielder Limited — an Australia-based manufacturer of food products — for working capital and refinancing purposes. This revolving loan was divided into three revolver tranches: a $120 million AUD tranche with a maturity period of one year and an interest rate of BBSY plus a margin of 85 basis points (bps), a $420 million AUD tranche with a maturity period of three years and an interest rate of BBSY plus a margin of 95 bps, and a $130 million AUD tranche with a maturity period of five years and an interest rate of 105 bps. The proceeds were to be used for working capital purposes and to refinance a $500 million USD three-year tranche of a $1.4 billion AUD loan signed in December 2005. In addition to the Sydney Branch of BOC, the following lenders contributed to the loan syndicate: nabCapital (a division of National Australia Bank Limited (NAB)), Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), TD Securities Inc., Westpac Banking Corporation, Bank of America Securities Asia, the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Rabobank, Sumitomo Mitsui Banking Corporation (SMBC), and WestLB Sydney Branch. nabCapital served as sole mandated lead arranger. The other 10 lenders joined in syndication: ANZ, CBA, Rabobank, TD Securities, and Westpac as co-arrangers and BOC Sydney Branch, Bank of America Securities Asia, BTMU, SMBC, and WestLB as lead managers. The loan was oversubscribed from its $600 million AUD target.

Staff comments

1. The individual contributions of the 11 lenders to this $670 million AUD loan and its tranches are unknown. AidData has assumed each lender contributed to each tranche. For the time being, AidData has estimated the contribution of BOC Sydney Branch by assuming each lender contributed an equal amount ($60,909,090.9091 AUD) to the loan syndicate. 2. As it is unclear which tranches BOC contributed to, AidData has taken the average maturity period of the three tranches [(1 + 3 + 5) / 3] = 3 and the average interest rate of each tranche (assuming a 6-month BBSY, the average 6-month BBSY for May 2008 being 7.9883% per https://www.dropbox.com/scl/fi/vf4hmk3ca1b11nm8tyjkg/BBSW-and-BBSY-Daily-Reference-Rates-2000-to-2023.xlsx.xlsx?cloud_editor=gsheet&dl=0&rlkey=ozq8sa1itiq8kmpnqhdb6jndh#gid=544580120) [(7.9883% + 0.85% (85 bps)) + (7.9883% + 0.95% (95 bps)) + (7.9883% + 1.05% (105 bps))] / 3 = 8.9383%.