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Overview

ICBC contributes $41.96 million USD to $531.68 million USD term loan tranche of $591.68 million USD syndicated loan for the 1050 MW Caithness Moxie Freedom Generating Station Project

Commitments (Constant USD, 2023)$43,898,484
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 10, 2015
Start (actual)
Dec 1, 2015
End (actual)
Sep 1, 2018
Last repayment (originally scheduled)
Dec 29, 2023

Geospatial footprint

Map overview

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The 1050 MW Caithness Moxie Freedom Project is a combined-cycle natural gas fired power plant located in the Salem Township of Luzerne County, Pennsylvania, US. More detailed location information can be found here: https://www.openstreetmap.org/way/862782990

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • CIT Group
  • Citigroup Inc.
  • GE Energy Financial Services (EFS)
  • ING Group N.V.
  • Investec Group
  • Mitsubishi UFJ Financial Group
  • SunTrust Bank

State-owned Banks

  • Landesbank Hessen-Thüringen (Helaba)
  • Norddeutsche Landesbank Girozentrale (NORD/LB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Moxie Freedom, LLC

Implementing agencies

Private Sector

  • Gemma Power Systems, LLC

Loan description

ICBC contributes to $591.68 million USD syndicated loan for the 1050 MW Caithness Moxie Freedom Generating Station Project

Interest rate (t₀)•3.84175%Interest type•Variable Interest RateMaturity•8.0833 years

Narrative

Full Description

Project narrative

On November 10, 2015, financial close was reached on a deal in which a syndicate of 11 lenders — including the Industrial and Commercial Bank of China (ICBC) — entered into a $950.68 million USD loan agreement with Moxie Freedom, LLC — a special purpose vehicle (SPV) jointly sponsored by Caithness Energy (50%) and Moxie Energy (50%) — for the 1050 MW Caithness Moxie Freedom Generating Station Project. The loan facility included a $60 million USD working capital loan tranche and a $531.68 million USD term loan tranche. Both tranches carry a maturity period of eight years and one month (construction plus five years), a final maturity date of December 29, 2023, and a rate of LIBOR plus 325 basis points (3.25%). ICBC contributed $41.96 million USD to the $531.68 million USD term loan tranche. The following lenders also contributed the following amounts: BNP Paribas (coordinating lead arranger/ syndication agent and contributed $45 million USD), CIT Group ($41.96 million USD), Citigroup (coordinating lead arranger and contributed $35 million USD), Credit Agricole Group ($41.96 million USD), GE Energy Financial Services (coordinating lead arranger/ syndication agent and contributed $74 million USD), Landesbank Hessen-Thüringen (Helaba) ($41.96 million USD), ING Group ($41.96 million USD), Investec ($41.96 million USD), Mitsubishi UFJ Financial Group (coordinating lead arranger/ administrative agent and contributed $45 million USD), NordLB ($38.96 million USD), and SunTrust Bank ($41.96 million USD). Construction began in December 2015 and the plant reached commercial operations in September 2018. The 1050 MW Caithness Moxie Freedom Generating Station Project is a combined-cycle natural gas fired power plant located in the Salem Township of Luzerne County, Pennsylvania. Gemma Power Systems — a wholly-owned subsidiary of Argan Inc. — provided engineering, procurement and construction (EPC) services. The plant sells power to the PJM Interconnection market, a power transition market which spans the eastern United States. In lieu of a power purchase agreement, it has a hedge.

Staff comments

1. The following entities played the following roles in the agreement: Leidos provided technical advice on the deal and Latham and Watkins played legal adviser to lender(s).