ICBC contributes $33.85 million AUD to a $830.15 million AUD syndicated loan for the 414 MW Uungula Wind Farm Project (Linked to Record ID#104996)

Project narrative

On December 15, 2023, a syndicate of 10 banks — including the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) — entered into a $830.15 million AUD ($558.12 million USD) syndicated term loan agreement with Squadron Breeze Finco Pty Ltd — an Australia-incorporated special purpose vehicle (SPV) and wholly-owned subsidiary of Squadron Energy, a wholly-owned portfolio company of Tattarang — for the 414 MW Uungula Wind Farm Project. This loan carried a maturity period of five years, a final maturity date of December 19, 2028, and an interest rate of BBSY plus a margin of 170 basis points (bps). Financial close was reached on December 19, 2028. BOC contributed $29.02 million AUD ($19.51 million USD) and ICBC contributed $33.85 million AUD ($22.76 million USD) to the loan syndicate. Record ID#104996 captures BOC's contribution. Record ID#104997 captures ICBC's contribution. In addition to BOC and ICBC, the following lenders contributed to the loan syndicate: Commonwealth Bank of Australia (CBA) ($99.91 million AUD; $67.17 million USD), HSBC Bank ($77.37 million AUD; $52.02 million USD), ING Bank N.V. ($125.73 million AUD; $84.53 million USD), MUFG Bank, Ltd. ($77.37 million AUD), National Australia Bank Limited (NAB) ($77.37 million AUD), Société Générale Corporate & Investment Bank (SGCIB) ($72.55 million AUD; $48.77 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($101.56 million AUD; $68.28 million USD), and Westpac Banking Corporation ($135.41 million AUD; $91.04 million USD). SGCIB served as mandated lead arranger. The proceeds were to be used by the borrower to finance the construction of the 414 MW Uungula Wind Farm, a 69-turbine wind farm located in Wiradjuri Country between the towns of Wellington (14 kilometers east of Wellington) and Gulgong in New South Wales. In addition to the wind turbines, the project included a 150 MW battery energy storage facility, up to six permanent wind monitoring masts, ancillary infrastructure including concrete batching plants, and underground transmission and control cables, a 11.6-kilometer 330 kV single-circuit transmission line, collector substations, a 330kV switching station, a 330/33kV substation, site compounds, crane hardstands, and assembly areas/ the wind farm would produce electricity, transformer to 33 kV by on-site transformers, then with underground cables transferring the power to a collector substation, and then to TransGrid's Wellington-to-Wollar 330kV transmission line at the northern part of the site. the wind farm would produce electricity, transformer to 33 kV by on-site transformers, then with underground cables transferring the power to a collector substation, and then to TransGrid's Wellington-to-Wollar 330kV transmission line at the northern part of the site. The wind turbines were GE 6.0-164 turbines with a capacity of 6 MW each, with the wind turbine generators part of the Cypress platform with a unique two-piece blade design to optimize logistics and reduce costs. The wind farm would have the capacity to generate enough electricity to power over 220,000 homes and prevent carbon emissions of 560,000 tons annually. The wind farm was expected to create over 260 jobs for the regional community and inject $41 million AUD into the economy. The wind farm was projected to have an operational life of 30 years. In addition to the debt, Squadron Energy provided $170.00 million AUD ($114.29 million USD) in cash equity for the $1.00015 billion AUD ($672.41 million USD) project. GE Vernova was responsible for the manufacture of the wind turbines, and GE Vernova, Nacap, and CCP in a consortium were responsible for engineering, procurement, and construction (EPC) services. AECOM served as owners' engineer to support project delivery via design reviews, equipment inspections, site inspections, construction monitoring, and handover assistance. Transgrid Group’s Lumea, an energy infrastructure provider, is set to build, own, operate and maintain the transmission infrastructure, with site works expected to begin in 2025. The project was initially announced publicly in July 2021. Eco Logical Australia prepared an environmental impact statement (EIS) in July 2013. In May 2021, the New South Wales Department of Planning, Industry, and Environment issued development approval for the project. In 2021, the wind farm received developmental approval. In June 2022, Squadron Energy signed a 15-year Power Purchase Agreement (PPA) for 200 MW of the farm's production from 2026 onwards. Construction began on January 11, 2024.