ICBC participates in $2.055 billion syndicated loan for refinancing the acquisition of Transportadora Associada de Gas (TAG)

Project narrative

On September 29, 2023, Transportadora Associada de Gás S.A. (TAG) signed a $2.055 billion syndicated loan agreement with a group of Chinese and non-Chinese banks to refinance a June 2019 loan that facilitated ENGIE Brasil Energia, ENGIE S.A., and CDPQ's acquisition of TAG from Petrobras. The loan carries an 8 year maturity and an interest rate of SOFR plus a 4.20% margin, a credit adjustment spread of 0.428%, and an additional unknown spread. Bank of China, BBVA, China Construction Bank, Citibank, Credit Agricole Group, ICBC, Intesa Sanpaolo, JP Morgan, Mizuho Bank, MUFG Bank, Santander, Société Générale, and Sumitomo Mitsui Banking Corporation all participated in the September 2023 syndicated loan. Bank of China contributed $150 million. The purpose of the loan was to refinance the $2.45 billion loan from June 2019 used by Engie and Canadian fund Caisse de Dépôt et Placement du Québec (CDPQ) to finance the acquisition of the 90% stake in TAG. Banco do Brasil, BNP Paribas, Bradesco, Credit Agricole Group, ING Bank, Itau BBA ,Mizuho Financial Group, MUFG Bank, Societe Generale, and Sumitomo Mitsui Banking Corporation contributed equally ($250 million) to the original loan. The original borrowing terms of the 2019 loan included an 8 year maturity and interest rate of 6-month LIBOR plus a 2.63% margin. There was an obligation under the June 2019 agreement to refinance by November 2026.