Narrative
Full Description
Project narrative
In early September 2022, a syndicate of 12 banks — including China Everbright Bank and the Sydney Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $725 million AUD ($497 million USD) syndicated term loan agreement with AusNet Services Holdings Pty Ltd — an Australia-incorporated wholly-owned subsidiary of AusNet Pty Ltd, an Australian energy delivery services business that owns and operates Victoria's electricity transmission network, one of the five electricity distribution networks in Victoria, and one of the three gas distribution networks in Victoria fully owned by Australian Energy Holdings No 4 Pty Limited, a company controlled by Brookfield Asset Management in consortium with Australian multi-industry superannuation fund Sunsuper Superannuation Fund (later merged into Australian Retirement Trust), Alberta Investment Management Corporation (AIMCo), Investment Management Corporation of Ontario (IMCO), Healthcare of Ontario Pension Plan (HOOPP), and Canada’s Public Sector Pension Investment Board (PSP Investments) — for unspecified purposes. This loan carried a maturity period of 10 years and an interest rate of BBSY plus a margin of 165 basis points (bps). Record ID#101869 captures China Everbright Bank's contribution. Record ID#101870 captures ICBC Sydney Branch's contribution. In addition to the two Chinese state-owned banks, the following lenders contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), ING Group N.V., National Australia Bank Limited (NAB), Export Development Canada (EDC), Dai-Ichi Life Insurance Company, Daido Life Insurance Company, The 77 Bank, E.Sun Commercial Bank, Fukoku Mutual Life Insurance, and Hua Nan Commercial Bank (HNCB). ANZ, ING, and NAB served as mandated lead arrangers and bookrunners (MLABs). China Everbright Bank, EDC, and Dai-Ichi joined in syndication as mandated lead arrangers (MLAs). ICBC Sydney Branch and Daido Life Insurance joined in syndication as lead arrangers. 77 Bank, E.Sun Commercial Bank, Fukoku Mutual Life, and HNCB joined in syndication as arrangers. The loan was oversubscribed from its minimum launch size of about $300 million AUD.
Staff comments
1. The individual contribution of the 12 lenders to this $725 million AUD syndicated loan are unknown. For the time being, AidData has estimated the contribution of China Everbright Bank and ICBC by assuming that each lender contributed an equal amount ($60,416,666.6667 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% + 1.65% (165 bps) = 4.73%.