Bank of China Luxembourg has signed a US$1.05bn term loan with a syndicate of 10 banks. Having first launched the deal at US$500mn, the bank more than doubled the facility to accommodate the significant oversubscription.
The deal pays a margin of 55 basis points a year over Libor and has a bullet maturity with a two-year tenor, extendable by a further year.
It refinances a dual-currency facility signed in April 2016, consisting of €300mn and US$396.4mn tranches, GTR understands. The funds will go towards general purposes, including trade financing.
A number of new lenders have joined the syndicate this time round, namely Crédit Agricole, Mizuho, Commerzbank, First Abu Dhabi Bank (FAB), BNP Paribas and Landesbank Baden-Württemberg (LBBW).
Wells Fargo’s London branch led the deal as sole co-ordinator and documentation agent, with ING, London acting as facility agent.
Crédit Agricole, ING, Mizuho and Wells Fargo served as the deal’s bookrunners and mandated lead arrangers (MLAs). Commerzbank Luxembourg, FAB and Standard Chartered also acted as MLAs, with BNP Paribas, Citi and LBBW taking on the role of lead arrangers.
Bank of China says in a press statement that it “was able to secure competitive terms and refinance at levels that are materially lower than those paid by it under its previous financing in 2016”. It adds that the level of interest in the finance package “is a strong validation of its attractiveness as a borrower, as well as the strong relationships it maintains with the international banking community”.