Narrative
Full Description
Project narrative
On November 13, 2020, State Grid International Development Co., Ltd. signed a share purchase agreement to acquire a 96.04% equity stake in Compañía General de Electricidad S.A. from Naturgy Energy Group, S.A. and others for EUR 2.6 billion. The acquisition was completed on July 26, 2021. State Grid International Development Co., Ltd. obtained an EUR 780 million syndicated loan from ICBC and other banks to facilitate the acquisition.
Staff comments
1. The Chinese project title is 国家电网收购智利CGE or 国家电网收购智利目 or 中国国家电网将以30.4亿美元收购智利电力公司. 2. Banco Santander, S.A and Banco Bilbao Vizcaya Argentaria, S.A. acted as financial advisors to the borrower. 3. As the largest power distribution company and the second largest transmission company in Chile, CGE operates 3,647 kilometers of transmission lines, 65,000 kilometers of distribution lines, and serves three million customers in 14 of Chile's 16 regions. 4. For the time being, AidData assumes that the two banks that served as financial advisers to the borrower (Banco Santander, S.A and Banco Bilbao Vizcaya Argentaria, S.A.) were also participants in the bank syndicate. This issue merits further investigation. 5. The size of ICBC’s contribution to the EUR 780 million syndicated loan. For the time being, AidData assumes that ICBC was one of the banks that participated in the syndicate and every member of the syndicate made equal contributions (EUR 260 million). This issue merits further investigation. 6. CGE is a utility company based in Chile, operates in the sectors of electricity, natural gas and other services and is listed on the Santiago Stock Exchange.