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Overview

Bank of China contributes $23 million AUD to a $92 million AUD syndicated loan for the 110 MW Beryl Solar Farm Refinancing Project

Commitments (Constant USD, 2023)$15,279,793
Commitment Year2023Country of ActivityAustraliaDirect Recipient Country of IncorporationAustraliaSectorEnergyFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2023
First repayment (originally scheduled)
Aug 1, 2023
Last repayment (originally scheduled)
Jul 30, 2028

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

  • Bangkok Bank Public Company Limited (BBL)
  • DBS Bank Ltd.
  • United Overseas Bank Limited (UOB)

Receiving agencies

Private Sector

  • Banpu Energy Australia Pty Limited (BEN)

Loan description

Bank of China contributions to a $92 million AUD syndicated loan for the 110 MW Beryl Solar Farm Refinancing Project

Interest rate (t₀)6.2078%Interest typeVariable Interest RateMaturity5 years

Narrative

Full Description

Project narrative

On August 1, 2023, a syndicate of four banks — the Bank of China (BOC), Bangkok Bank, DBS Bank, and United Overseas Bank Limited (UOB) — entered into a $92.00 million AUD ($61.41 million USD) syndicated loan agreement with Banpu Energy Australia Pty Limited — an Australia-incorporated subsidiary of Banpu Public Company Limited, a Thailand-based energy company — for the 110 MW Beryl Solar Farm Refinancing Project. This loan carried a maturity period of five years, a repayment period of five years (grace period of zero years), and an interest rate of BBSY plus a margin of 150 basis points (bps), with a three-month period of fixation of the interest rate between the loan it was refinancing that matured in May 2023 and the close of the $92 million AUD loan. Each of four lenders contributed $23.00 million AUD ($15.35 million USD). The proceeds were to be used by the borrower to refinance the existing debt of the Beryl Solar Farm; specifically, the proceeds were used to refinance a syndicated loan that originated in May 2018. The Beryl Solar Farm is an operational solar farm with a 110 MWdc capacity located in Wiradjuri Country in central west New South Wales, about five kilometers west of Gulgong. It began operations in 2018 and provides energy for the Sydney Metro Northwest Rail Link.

Staff comments

1. There is a claim {{see source ID#193489}} that the lenders committed to the loan unequally, with DBS and UOB committing a higher amount. However, a specific breakdown is unknown, and Source ID#193488 states each lender contributed equally. This issue merits further investigation. 2. "Ashurst advises Banpu Energy Australia on Beryl Solar Farm refinancing", published in November 2023, claims the refinancing, which it advised on, was for $102 million AUD. This may be an indication that the loan was up-sized and/or additional lenders joined. This issue merits further investigation. 3. A 6-month BBSY was assumed. The average 6-month BBSY for August 2023 was 4.7078%. Therefore, the interest rate has been coded as 4.7078% + 1.50% (150 bps) = 6.2078%.