Bank of China contributes $100 million to $1.35 billion syndicated loan for Esentia Energy Systems pipeline refinancing in Mexico

Project narrative

On May 25, 2023, Esentia Hub Chávez Holding, S. de R.L. de C.V. -- a subsidiary of Esentia Energy Systems (50% equity) and Swiss private equity firm Partners Group (50% equity) -- signed a $1,347,820,000 debt package with a syndicate of banks. The financing package consisted of a $1.128 billion term loan, an operating letter of credit facility, and a reserve account letter of credit facility. Bank of China reportedly contributed $100 million to the $1.128 billion term loan. The other participants in the syndicate were Banco Sabadell, BBVA, Grupo Financiero Inbursa, ING Bank, Intesa Sanpaolo, KfW IPEX Bank, Mizuho Bank, NordLB, Scotiabank, Société Générale, and Sumitomo Mitsui Banking Corporation. The loan carried a 7-year maturity period and an unknown interest rate. The proceeds were to be used to refinance existing project finance loans to three pipeline projects located in Mexico in which Esentia Energy Systems has an equity stake: the 321.9 km Roadrunner Gas Transmission Pipeline, the 450 km La Laguna – Aguascalientes Gas Pipeline, and the 389 km Villa de Reyes - Aguascalientes - Guadalajara Gas Pipeline. The Roadrunner Gas Transmission Pipeline is a 50/50 joint venture of Esentia Energy Systems and ONEOK Partners, and connects ONEOK's WesTex Transmission natural gas pipeline system located in Coyanosa, Texas, across the US-Mexican border to Fermaca’s Tarahumara Gas Pipeline. It became operational in 2016. The La Laguna – Aguascalientes Gas Pipeline is fully owned by Esentia and became operational in 2019. It passes through the states of Aguascalientes, Durango, and Zacatecas and connects to the third project, the Villa de Reyes - Aguascalientes - Guadalajara Gas Pipeline, which is also fully owned by Esentia. The Villa de Reyes - Aguascalientes - Guadalajara pipeline became operational in 2020.