Narrative
Full Description
Project narrative
On March 31, 2022, the Bank of China (BOC) and Intesa Sanpaolo S.p.A. entered into a £30.0 million GBP revolving credit facility (RCF) agreement with Kelda Finance (No.2) Limited — an England and Wales-incorporated wholly-owned subsidiary and special purpose vehicle of Kelda Finance (No.1) Limited, an England and Wales-incorporated wholly-owned subsidiary of Kelda Group Limited, an England and Wales-incorporated utility headquartered in Bradford, England and a wholly-owned subsidiary of Kelda Eurobond Co Limited, an England and Wales-incorporated wholly-owned subsidiary of Kelda Holdings Limited, a Jersey-incorporated joint venture of GIC Special Investments Pte. Ltd., the Singapore-incorporated private equity investment arm and wholly owned subsidiary of Singaporean sovereign wealth fund GIC Private Limited (33.56% stake); Wharfedale Hong Kong Limited, a Hong Kong-incorporated wholly-owned subsidiary of Infrastructure Saxon S.à r.l., a Luxembourg-incorporated company owned by Jersey-incorporated Pan-European Infrastructure Fund LP, a fund managed by Deutsche Asset Management (23.37% equity stake); SAS Trustee Corporation (STC), the trustee of certain New South Wales public sector superannuation schemes in Australia (12.75% equity stake); and by Kelda Holdings Gateway Infrastructure HK Limited, Gateway HK Water Limited, and Gateway HK Water II Limited, three Hong Kong-incorporated companies managed by Corsair Infrastructure Management L.P., the division of Corsair Capital (30.32% equity stake) — for refinancing purposes related to Yorkshire Water. The loan carried a maturity period of five years. The proceeds were to be used to replace and refinance Kelda Finance (No.2)'s existing £30.0 million GBP RCF maturing in December 2022 and that was early terminated on April 7, 2022. Record ID#111071 captures BOC's contribution. Then, on April 7, 2022, the Bank of China (BOC) and Intesa Sanpaolo S.p.A. entered into a £65.0 million GBP secured term loan agreement with Kelda Finance (No.2) Limited for refinancing purposes related to Yorkshire Water. The loan carried a maturity period of seven years and an interest rate carried an interest rate of SONIA plus an initial margin of 3.00%, with the margin dependent on covenanted gearing levels (Group RAR). The loan was secured (i.e. collateralized). The proceeds were to used by the borrower to refinance an existing £65.0 million GBP term loan that was due for repayment in December 2022. Record ID#111072 captures BOC's contribution. The two facilities included a common term agreement that BOC and Intesa Sanpaolo established. Kelda owns Yorkshire Water, a water supply and waste water treatment company headquartered in Bradford servicing West Yorkshire, South Yorkshire, the East Riding of Yorkshire, part of North Lincolnshire, most of North Yorkshire and part of Derbyshire, in England. It treats and supplies about 1.3 billion liters of drinking water and collects, treats, and returns about 1 billion liters of wastewater to the environment.
Staff comments
1. AidData assumes the facilities were syndicated and that both BOC and Intesa Sanpaolo contributed to each tranche. This issue merits further investigation. 2. The individual contributions of the two lenders to this £65 million GBP syndicated term loan are unknown. For the time being, AidData has estimated the contribution of BOC by assuming each contributed an equal amount (£32,500,000 GBP) to the loan syndicate.