ICBC contributes $130.05 million AUD to a $2.2 billion AUD syndicated loan for the New Royal Adelaide Hospital PPP 2021 Refinancing Project (Linked to Record ID#93486)

Project narrative

On May 19, 2011, a syndicate of 15 banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — entered into a $2.50354 billion AUD ($2.68597 billion USD) syndicated senior loan agreement with SA Health Partnership Securitisation Pty Ltd (later renamed as Celsus Securitisation Pty Limited) — an Australia-incorporated special purpose vehicle (SPV) then jointly owned by InfraRed Infrastructure Fund III (30.58% equity stake), Leighton Contractors (19.9% equity stake), John Laing Group plc (17.26% equity stake), Uberior Infrastructure Investments Limited (17.26% equity stake), and Macquarie Capital (15% equity stake) — for the New Royal Adelaide Hospital Public-Private Partnership (RAH PPP) Project. This debt carried a tenor (maturity) of seven years, a final maturity date of May 18, 2018, and an interest rate based on and an interest rate of BBSY plus a margin between 245 basis points (bps) and 260 bps. Financial close was reached on June 6, 2011. ICBC (Asia) contributed $91 million USD to this loan. Record ID#93468 captures ICBC (Asia)'s contribution. Due to a delay in the completion of the project to 2017, refinancing the original debt upon the 2018 maturity was not feasible for the sponsors. Instead, the sponsors decided to seek to amend and extend the existing debt until refinancing could be achieved. On April 24, 2018, a syndicate of 28 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into an amendment agreement with the borrower to extend the maturity period of the loan by two years and one months (a new maturity period of 9.083 years). Some of the original lenders did not participate in the extension, and new lenders participated. Record ID#93485 captures ICBC's contribution to this extension. In 2020, the same lenders — including ICBC — entered into an amendment agreement with the borrower to extend the loan by one year and nine months (a new maturity of 10.833 years), having a new final maturity of September 2021. Record ID#96446 captures ICBC's contribution to this extension. On July 14, 2021, financial close on a deal in which a syndicate of 18 banks — including the Bank of China (BOC) and ICBC — entered into a $2.2 billion AUD ($1.63997 billion USD) syndicated sustainability-linked loan (SLL) agreement with Celsus Securitisation Pty Limited — whose shareholders were now InfraRed Infrastructure Fund III (30.58% equity stake), AMP Capital (17.26% equity stake), Aberdeen Asset Management (abrdn) (27.21% equity stake), The Infrastructure Fund (15% equity stake), and MM Capital Infrastructure Fund 1 (9.95% equity stake) — for the New Royal Adelaide Hospital PPP 2021 Refinancing Project. This loan carried a maturity period of four years. BOC contributed $75.03 million AUD ($55.93 million USD) and ICBC contributed $130.05 million AUD ($96.94 million USD). Record ID#93486 captures BOC's contribution. Record ID#93487 captures ICBC's contribution. In addition to BOC and ICBC, four Australian and 12 international banks contributed to this syndicated loan: In addition to BOC and ICBC, the following lenders contributed the respective amounts to the loan syndicate: Australia and New Zealand Banking Group (ANZ) ($170.06 million AUD; $126.77 million USD), Commonwealth Bank of Australia (CBA) ($170.06 million AUD), Crédit Agricole Corporate and Investment Bank (CACIB) ($130.05 million AUD), HSBC Bank ($75.03 million AUD), ING Bank ($161.56 million AUD; $120.43 million USD), KB Kookmin Bank ($75.03 million AUD), MUFG Bank, Ltd. ($161.56 million AUD), Mizuho Bank ($161.56 million AUD), National Australia Bank Limited (NAB) ($75.03 million AUD), Natixis ($130.05 million AUD), Nippon Life Insurance ($130.05 million AUD), Norinchukin Bank ($130.05 million AUD), Société Générale S.A. (SocGen) ($75.03 million AUD), Sumitomo Mitsui Trust Bank, Limited (SMTB), ($75.03 million AUD), United Overseas Bank Limited (UOB) ($161.56 million AUD), and Westpac Banking Corporation ($130.05 million AUD). All banks served as mandated lead arrangers. ANZ and CBA served as the sustainability coordinators. This loan was classified as a sustainability loan because it aligned with the international Green Loan Principles and Social Loan Principles, namely because RAH was the first large-scale Australian hospital complex to achieve a 4 Star Green Star – Healthcare ‘As Built’ rating from the Green Building Council of Australia (GBCA) and that it had provided a wide range of health services for South Australians and served as an accredited teaching hospital. This was reportedly the largest Environmental Social and Governance loan in the Asia-Pacific. Then, on June 15, 2023, financial close was reached on a deal in which a syndicate of 14 banks — including BOC and ICBC — entered into a $2.124 billion AUD ($1.44597 billion USD) syndicated green loan agreement with Celsus Securitisation Pty Limited — whose shareholders were now Dexus Community Infrastructure Fund (CommIF) (58.69% equity stake), Dexus Healthcare Property Fund (DHPF) (9.95% equity stake), AMP Capital Core Infrastructure Fund (CIF) (4.15% equity stake), abrdn (17.26% equity stake), and MM Capital Infrastructure Fund 1 (9.95% equity fund) — for the New Royal Adelaide Hospital PPP 2023 Refinancing Project. This term loan carried a maturity period of four years, a final maturity date of June 15, 2027, and an interest rate of BBSY plus a margin of 140 bps. This loan was a green and social loan, issued under the principles of the Asia Pacific Loan Market Associations and the Loan Syndications and Trading Association. The proceeds were to be used by the borrower to refinance the existing $2.2 billion AUD syndicated loan from 2021. BOC and ICBC each contributed $155.06 million AUD ($105.56 million USD) to the loan syndicate. Record ID#101580 captures BOC's contribution. Record ID#101581 captures ICBC's contribution.