ICBC contributes $43.68 million USD to a $635.02 million USD syndicated loan the Enfinium Kelvin Waste to Energy Plant Project

Project narrative

On November 15, 2021, financial close was reached on a deal in which a syndicate of seven banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $635.02 million USD syndicated loan agreement with Enfinium Kelvin Limited — a special purpose vehicle owned by Enfinium Group Limited, a portfolio company of Australia's Igneo Infrastructure Partners — for the Enfinium Kelvin Waste to Energy Plant Project. This loan was secured by (i.e. collateralized against) the borrower's first legal mortgage on all real property in England and Wales owned by the borrower as of November 15, 2021; a first fixed equitable charge on all other real property owned by the borrower before November 15, 2021 and acquired therefore if not validly and effectively mortgaged; a first fixed charge on all the borrower's bank accounts if not validly and effectively assigned; a first fixed charge on all receivables if not validly and effectively assigned; a first fixed charge on all the borrower's investments (shares, stocks, units, debentures, units, bonds, notes, commercial paper, certificates of deposit, depository interests, securities, warrants, options and other rights to subscribe for, purchase or otherwise acquire securities and investments, and any other securities or investments deriving from investments or rights attaching or relating to securities or investments); a first fixed charge on all the borrower's right, title, and interest from time to time in and to its uncalled capital and goodwill; a first fixed charge on all the borrower's intellectual property; a first fixed charge of all the borrower's right, title, and interest from time to time in and to its beneficial interest, claim, or entitlement in any pension fund; a first fixed charge on Enfinium Kelvin plant and its machinery; a first fixed charge on all the borrower's insurances, if not validly and effectively assigned, and a first floating charge on all the borrower's undertaking and all of its assets, present and future. ICBC contributed $43.68 million USD and served as a Mandated Lead Arranger. In addition to ICBC, the following banks participated in this loan: ABN AMRO, Banco Santander S.A., Crédit Agricole Corporate and Investment Bank (CACIB), MUFG Bank Ltd., Natixis, and Coöperatieve Rabobank U.A. (Rabobank). ABN AMRO, Santander, CACIB, MUFG, and Natixis served as bookrunners. MUFG Bank served as Security Agent. The purpose of the project was to design, build, finance and operate a fully integrated waste management facility, Enfinium Kelvin, in the United Kingdom. The combined heat and power, located in West Bromwich, Midlands, was capable or processing up to 395,000 tons of residual (post-recycled) waste to generate 47 MW (gross) of partially renewable, baseload electricity, able to power over 95,000 British homes. The plant was expected to create over 400 jobs during construction and 40 full-time jobs once operational. The Sandwell Council provided planning permission for the plant in September 2019. The Environment Agency awarded an environmental permit on July 2019. In January 2021, Enfinium Kelvin signed a long-term waste supply contract with SUEZ for more than 50% of the facility’s annual capacity. In October 2021, it signed additional long-term waste supply contracts with Biffa and B&M Waste. ACCIONA, S.A. was the Engineering, Procurement and Construction (EPC) contractor for the delivery of the facility. In May 2022, Acciona awarded a £8 million GBP piling contract to Van Elle for the installation and testing of over 1,000 rotary and continuous flight auger (CFA) piles for the plant, the installation of 200 meters of concrete guide walls and secant piled retaining walls for two bunkers, and the removal of about 16,000 cubic meters of spoil. In June 2022, Acciona awarded a contract to Doosan Lentjes for the supply of the flue gas cleaning system for the plant. Acciona awarded Careys a contract for enabling package of works at the project site including the removal of vegetation, site clearance, demolition of existing structures, cut and fill earthworks, and perimeter fencing. Construction was planned to commence in November 2021. Construction appears to have been in progress by May 2022. The plant has been the cause of local controversy; initially, the Sandwell Council had denied approval, only for an independent planning inspector to overturn the denial in October 2019. Concerns among residents included the noise and traffic associated with the facility, and among prominent opponents of the plant was MP for West Bromwich, Tom Watson, former Labour Party deputy leader.