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Overview

Bank of China contributes €150 million EUR to the €600 million EUR term loan tranche of a €925 million EUR syndicated loan to Infrastructure Investment Fund to finance its acquisition of a 100% stake in Falck Renewables

Commitments (Constant USD, 2023)$149,197,758
Commitment Year2022Country of ActivityItalyDirect Recipient Country of IncorporationItalySectorEnergyFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 20, 2022
Start (actual)
May 18, 2022
End (actual)
May 18, 2022
Last repayment (originally scheduled)
Jun 20, 2029

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

  • Canadian Imperial Bank of Commerce (CIBC)
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)

State-owned Banks

  • National Westminster Bank Plc (NatWest)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Green BidCo S.p.A.

Loan description

June 2022 €925 million EUR syndicated loan to Infrastructure Investment Fund to finance its acquisition of a 100% stake in Falck Renewables in Italy

Interest typeUnknownMaturity7 years

Narrative

Full Description

Project narrative

On June 20, 2022, financial close was reached on a deal in which a syndicate of four banks — including Bank of China (BOC), Canadian Imperial Bank of Commerce (CIBC), Intesa Sanpaolo S.p.A., and National Westminster Bank Plc (NatWest) — entered into a €925.00 million EUR ($973.44 million USD) syndicated loan agreement with Green BidCo S.p.A. — an Italy-incorporated special purpose vehicle (SPV) wholly owned by Cayman Islands-incorporated IIF Int’l Acquisitions Ltd, of Infrastructure Investment Fund (IIF), an investment vehicle advised by J.P. Morgan Investment Management Inc. — to finance the acquisition of a 100% stake in Falck Renewables S.p.A. The loan was divided into a €600.00 million EUR ($631.42 million USD) term loan tranche with a maturity period of seven years and a final maturity date of June 20, 2029; and a €325.00 million EUR ($342.02 million USD) revolver tranche with a maturity period of five years and a final maturity date of June 20, 2027. Each lender, including BOC, contributed €150.00 million EUR ($157.86 million USD) to the €600 million EUR term loan tranche and €81.25 million EUR ($85.51 million USD) to the €325 million EUR revolver tranche. Record ID#108682 captures BOC's contribution to the €600 million EUR term loan. Record ID#108683 captures BOC's contribution to the €325 million EUR revolver. The proceeds were used by the borrower to finance the acquisition of a 100.00% equity stake in Falck Renewables S.p.A., an Italy-incorporated company headquartered in Milan and listed on the Borsa Italiana that develops, designs, builds and manages renewable power production plants, with an installed capacity of 1,320 MW (1,283 MW according to the IFRS 11 reclassification) in the United Kingdom, Italy, United States, Spain, France, Norway and Sweden, using wind power, solar power, WtE and biomass technologies, with a renewable energy technical advisory and asset management services business via its wholly owned subsidiary Vector Renewables, and an energy management and downstream services business, from its owner Italian energy company Falck. IIF Int’l Acquisitions Ltd. entered into a sale and purchase agreement with Falck for its entire 60% interest on October 19, 2021 for €8.81 EUR ($10 USD) per share. The acquisition was expected to close in the first quarter of 2022. The acquisition closed on February 24, 2022. The acquisition triggered a mandatory cash tender offer for the remaining 40% share capital at closing. The acquisition of over 95% shares of Falck Renewables from the offer was achieved by May 10, 2022, with a squeeze-out (giving IIF 100%) was completed on May 18, 2022. In November 2022, Falck Renewables rebranded as Renantis.

Staff comments

1. AidData has assumed that Green BidCo S.p.A., as the SPV specifically involved in acquiring the company, was the borrowing institution or an affiliate of it.