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Overview

China Construction Bank participates in $250 million syndicated revolving credit facility with Transelec S.A. for working capital purposes in May 2021

Commitments (Constant USD, 2023)$32,933,629
Commitment Year•2021Country of Activity•ChileDirect Recipient Country of Incorporation•ChileSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 28, 2021
Last repayment (originally scheduled)
May 28, 2024

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

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)
  • Bank of Nova Scotia (Scotiabank)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • Transelec S.A.

Loan description

In 2021, Bank of China and China Construction Bank contribute to USD 250 million syndicated revolving credit facility to Transelec S.A., Chile

Interest rate (t₀)•1.13138%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3 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 The Bank of Nova Scotia (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. Then, on May 28, 2021, Transelec S.A. signed another $250 million syndicated RCF agreement with a group of bank for working capital purposes. Participants in the syndicate included The Bank of Nova Scotia, MUFG Bank Ltd, Bank of China Limited, Banco Santander, Sumitomo Mitsui Banking Corporation, China Construction Bank, and JP Morgan Chase Bank N.A. The RCF carried a 3-year maturity (final maturity date: May 28, 2024) and an interest rate of 3-month LIBOR plus a 1% margin.

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. The precise size of Bank of China’s contribution to the syndicate is unknown. For the time being, AidData assumes equal contributions ($35,714,285) across the seven members of the syndicate. This issue warrants further investigation. 3. China Construction Bank joined the syndicate in July 2021. 4. AidData has calculated the all-in interest rate (1.15219%) by adding the average 3-month LIBOR rate (0.15219%) the month of signing (May 2021) and the 1% margin.