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Overview

Bank of China participates in $250 million syndicated revolving credit facility with Transelec S.A. for working capital purposes in July 2020

Commitments (Constant USD, 2023)$42,988,909
Commitment Year•2020Country of Activity•ChileDirect Recipient Country of Incorporation•ChileSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 31, 2020
End (actual)
Dec 1, 2020
Last repayment (originally scheduled)
Jul 31, 2021

Geospatial footprint

Map overview

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The purpose of this project was to participate in a syndicated revolving credit facility with Transelec S.A., with headquarters at Orinoco 90, 14th Floor, Las Condes Santiago, Chile, for working capital purposes. More detailed locational information can be found at: https://www.openstreetmap.org/node/12089163568

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

  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of Nova Scotia (Scotiabank)
  • BNP Paribas S.A.
  • JP Morgan
  • The Bank of Tokyo-Mitsubishi, Ltd. (BTM)

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

State-owned companies

  • Transelec S.A.

Loan desecription

In 2020, Bank of China and China Construction Bank contribute to USD 250 million syndicated revolving credit facility to Transelec S.A., Chile

Interest rate (t₀)•1.74875%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•1 years

Narrative

Full Description

Project narrative

On December 26, 2017, Canada's Brookfield Asset Management (BAM) announced its intention to sell a 27.7% equity stake in Transelec S.A. — Chile's leading power transmission company — to China Southern Power Grid International (CSGI) for $1.3 billion. Then, on March 15, 2018, BAM sold its 27.7% equity stake in Transelec S.A. to China Southern Power Grid International (CSGI). On July 31, 2020, Transelec S.A. signed a $250 million syndicated revolving credit facility (RCF) agreement with a group of bank for working capital purposes. Participants in the syndicate included Scotiabank, Bank of Tokyo-Mitsubishi, BNP, Banco Santander, Bank of China, China Construction Bank, and JP Morgan. The RCF carried an interest rate of 3-month LIBOR plus a 1.5% margin and a 1-year maturity (final maturity date: July 31, 2021). The borrower drew down $100 million through the RCF and full repaid the debt in December 2020.

Staff comments

1. Transelec S.A. is Chile's leading power transmission company, supplying electricity to 98% of the country's population. It is owned by a consortium that consists of China Southern Power Grid International (CSGI) and the Canadian funds Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (BCI), and Public Sector Pension Investment Board (PSP). 2. AidData has estimated the all-in interest rate by adding 1.5% to average 3-month LIBOR in July 2020 (0.26776%). 3. The precise size of Bank of China’s contribution to the syndicate is unknown. For the time being, AidData assumes equal contributions ($41,666,666) across the six members of the syndicate. This issue warrants further investigation.