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Overview

China Everbright Bank contributes to a $450 million AUD syndicated loan for the ElectraNet 2022 Refinancing Project

Commitments (Constant USD, 2023)$49,214,538
Commitment Year•2022Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2022
Last repayment (originally scheduled)
Aug 29, 2032

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • China Everbright Bank

Cofinancing agencies

Private Sector

  • Dai-ichi Life Insurance Company, Limited
  • Daido Life Insurance Company
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Norinchukin Bank (Nochu Bank)
  • SBI Shinsei Bank, Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • ElectraNet Pty Ltd

Loan description

China Everbright Bank contributions to a $450 million AUD syndicated loan for the ElectraNet 2022 Refinancing Project

Interest rate (t₀)•4.63%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

In or around early September 2022, a syndicate of six banks — including China Everbright Bank — entered into a $450 million AUD ($307 million USD) syndicated term loan agreement with ElectraNet Pty Ltd — a South Australian electricity transmission company jointly owned by State Grid International Development Asia and Australia Holding Company Limited, subsidiary of Chinese state-owned State Grid International Development Ltd (SGID) (46.56% equity stake) and Australian Utilities Pty Ltd, the trustee for the Australian Utilities Trust (53.44% equity stake) — for the ElectraNet 2022 Refinancing Project. This loan carried a maturity period of 10 years and an interest rate of BBSY plus a margin of 155 basis points (bps). The proceeds were to be used by the borrower for refinancing, capital expenditure, working capital, and general corporate purposes. In addition to China Everbright Bank, the following lenders contributed to the loan syndicate: MUFG Bank, Ltd., Dai-ichi Life Insurance Company, Limited, Daido Life Insurance Company, Norinchukin Bank, and Shinsei Bank. MUFG served as the sole mandated lead arranger and bookrunner; the other five lenders joined in general syndication.

Staff comments

1. The individual contribution of the six lenders to this $450 million AUD syndicated loan is unknown. For the time being, AidData has estimated the contribution of China Everbright Bank by assuming that each lender contributed an equal amount ($75,000,000 AUD) to the loan syndicate. 2. A 6-month BBSY was assumed. The average 6-month BBSY for September 2022 was 3.08%. Therefore, the interest rate has been coded as 3.08% + 1.55% (155 bps) = 4.63%.