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Overview

BOC UK contributes to a £355 million GBP syndicated revolving credit loan to Anglian Water Services for working capital and capital expenditure purposes (Linked to Record ID#99992)

Commitments (Constant USD, 2023)$85,391,364
Commitment Year•2009Country of Activity•United KingdomDirect Recipient Country of Incorporation•United KingdomOverseas Jurisdiction•United KingdomSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 15, 2009
Last repayment (originally scheduled)
Jun 30, 2012

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 (UK) Limited (BOC UK)

Cofinancing agencies

Private Sector

  • Abbey National Treasury Services Plc (ANTS) (Santander Global Banking and Markets)
  • Bank of Ireland Group plc
  • Barclays Bank PLC
  • BNP Paribas S.A.
  • HSBC Bank PLC
  • Lloyds Bank plc (formerly Lloyds TSB Bank PLC)

State-owned Banks

  • Royal Bank of Scotland (RBS)

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Macau) Limited (ICBC (Macau)) (Formerly Seng Heng Bank Limited (SHB))

Receiving agencies

Private Sector

  • Anglian Water Services Limited

Loan description

BOC UK and ICBC contribution to £355 million GBP syndicated revolving credit loan to Anglian Water Services for working capital and capital expenditure purposes

Interest rate (t₀)•2.99316%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3 years

Narrative

Full Description

Project narrative

On June 15, 2009, financial close was reached on a deal in which a syndicate of nine banks — including the Bank of China (UK) Limited (BOC UK) and the Industrial & Commercial Bank of China (Macau) Limited (ICBC Macau) — entered into a £355.0 million GBP ($493.340 million USD) syndicated forward starting basis loan agreement with Anglian Water Services Limited — an English water company based in the East of England wholly owned by Anglian Water Group Limited, a Jersey-incorporated company owned and controlled by a consortium of investors including Canada Pension Plan Investment Board, Colonial First State Global Asset Management, Industry Funds Management (IFM), and 3i Group plc — for working capital and capital expenditure purposes. This loan was a revolving credit facility (RCF), carried an interest rate of LIBOR plus a margin of 175 basis points (bps), and carried a maturity period of three years and a final maturity date of June 30, 2012. The proceeds were to be used by the borrower to replace £225 million GBP of undrawn facilities maturing in July 2010 and for working capital and capital expenditure requirements. Record ID#99991 captures BOC UK's contribution. Record ID#99992 captures ICBC's contribution. In addition to the two Chinese state-owned banks, the following lenders contributed to the loan syndicate: Abbey National plc, BNP Paribas S.A., Bank of Ireland, Barclays Bank Plc, HSBC Bank Plc, Lloyds TSB Capital Markets, and Royal Bank of Scotland plc (RBS).

Staff comments

1. A 6-month GBP LIBOR was assumed. The average 6-month GBP LIBOR for June 2012 was 1.24316%. Therefore, the interest rate has been coded as 1.24316% + 1.75% (175 bps), or 2.99316%. 2. The individual contributions of the nine lenders to this £355 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 (£39,444,444.4444 GBP) to the syndicated loan. 3. "Anglian Water Services Limited Prospectus dated September 30, 2009" and "Anglian Water Services Financing Plc Prospectus dated October 1, 2010" state that BOC UK and ICBC participated in a £300,000,000 GBP loan, but "Anglian Water Group Limited Annual report and consolidated financial statements for the year ended 31 March 2010", published after the former, states it was £355 million GBP, which AidData assesses is correct. Nonetheless, there may have been an amendment of this loan. This issue merits further investigation.