Narrative
Full Description
Project narrative
On February 16, 2023, Ha Noi Thien Y Environmental Energy Joint Stock Company — a special purpose vehicle that is majority-owned by China Tianying (a publicly-owned environmental management company that operates in China and internationally) — signed a $200 million, 3-year, syndicated loan agreement with Ping An Bank Co, HSBC, Bank SinoPac Co, Cathay United Bank, Shanghai Pudong Development Bank, the Bank of East Asia, The Hong Kong Mortgage Corporation Limited, and Deutsche Bank. Shanghai Pudong Development Bank contributed $20 million. The transaction was structured as a hybrid (quasi-project) financing as the lenders relied on both the income stream from the project contracts entered into by the borrower and corporate guarantees from the sponsors and the borrower’s ultimate controlling shareholder. The proceeds of the loan were to be used by the borrower to refinance a Sinosure-backed $195 million debt financing package for the construction and operation of the Soc Son municipal solid waste (MSW) plant at Nam Son Waste Treatment Complex, which is located in the Soc Soc district of Hanoi City (exact locational coordinates: 21.3398, 105.8357) and has a processing capacity of 4,000 tons of solid waste per day to help treat litter in many urban districts. Construction of the facility commenced in August 2019 and concluded in April 2022. It is now one of the largest solid waste-to-energy (WtE) projects in the country, boasting a power generation capacity of 75MW. It addresses up to 70% of Hanoi municipality's waste treatment needs.
Staff comments
1. Allen & Overy served as counsel to the lenders. Freshfields Bruckhaus Deringer served as counsel to the sponsors. 2. The bank participants in the original, $195 million financing included Banco Santander, S.A., the Shenzhen Branch of China Minsheng Banking Corp. Ltd and Standard Chartered Bank as Mandated Lead Arrangers and Lenders, and Société General Hong Kong Branch as a Lender. 3. Sources conflict on whether Shanghai Pudong Development Bank provided $20 million or $25 million towards the syndicated loan. AidData has gone with the more conservative estimate and coded the transaction amount as $20 million.