Bank of China participates in $500 million syndicated revolving credit facility for Southeast Gateway Pipeline

Project narrative

On January 17, 2023, TC Energía Mexicana S. de R.L. de C.V. — a special purpose vehicle and wholly-owned subsidiary of TC Energy Corporation — signed a $500 million senior unsecured revolving credit facility agreement (with a 5-year maturity) and a $1.8 billion senior unsecured term loan agreement (with a 5-year maturity) with a bank syndicate for the 2928 km Transportadora de Gas Natural de la Huasteca (TGNH) Southeast Gateway Pipeline Refinancing Project. Both loans carried floating (variable) interest rates. Participants in the syndicate included Scotiabank, BBVA México, BMO Capital Markets, Mizuho Bank, Banco Inbursa (Institución de Banca Múltiple), Banco Nacional de México (Member of Grupo Financiero Banamex), Bank of America, Bank of China, HSBC Bank, ATB Financial, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Deutsche Bank AG. Bank of China reportedly contributed $36.3 million to the $500 million senior unsecured revolving credit facility and $130.7 million to the $1.8 billion term loan. The senior unsecured revolving credit facility and the senior unsecured term loan were guaranteed by three Mexican affiliates of TC Energy Corporation. The borrower is expected to use the loan proceeds to (a) refinance existing intercompany debt and (b) develop and construct the Transportadora de Gas Natural de la Huasteca (TGNH) Southeast Gateway Pipeline. The TGNH Southeast Gateway Pipeline is a $3.9–$4.5 billion offshore natural gas transmission project designed to transport 1.3 billion cubic feet per day (Bcf/d) of natural gas to the central and southeast regions of Mexico, including Veracruz and Tabasco. The project includes three pipelines: the Tamazunchale pipeline, the Tula–Villa de Reyes pipeline, and the Tuxpan–Tula pipeline. The Southeast Gateway section specifically is a 715 km subsea pipeline extending from Tuxpan, Veracruz, to Coatzacoalcos and Paraíso, Tabasco, in the Gulf of Mexico. Construction of the Southeast Gateway Pipeline began in late 2023, and the project was completed in May 2025, approximately 13% under its original budget. Commercial operations (i.e., tolling) commenced on June 27, 2025. The project is implemented under a 30-year contract between TC Energy and the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power utility. Under the terms of the agreement, CFE holds a 15% equity interest in the TGNH system, which will increase to approximately 49% upon contract expiration in 2055.