Bank of China contributes $10.01 million AUD to the $164.16 million AUD term loan tranche of a $170.37 million AUD syndicated loan to facilitate Guohua Energy's acquisition of a 75% equity stake in the 140 MW Woolnorth Wind Farm Project

Project narrative

In December 2011, Chinese renewable energy firm Guohua Energy Investment Corporation (GEIC) entered into an agreement with Tasmanian Government-owned Hydro Tasmania to purchase a 75% equity stake in the Woolnorth Wind Farm Project for a consideration of $88.6 million AUD. A joint venture between Hydro Tasmania and China Light and Power (CLP), Roaring 40s, had previously owned the wind farm, before 2010, when the joint venture was wound up and Hydro Tasmania took full control of the Woolnorth wind farms. The acquisition was to wipe $208 million AUD off of Hydro's balance sheets and provide to the State Government of Tasmania with a $30 million AUD sales tax windfall. Then, on February 27, 2012, financial close was reached on a deal in which a syndicate of three banks — the Bank of China (BOC), National Australia Bank Limited (NAB), and Mizuho Financial Group (MHFG) — provided a $170.37 million AUD ($181.93 million USD) syndicated loan to Shenhua Clean Energy Holdings Pty Ltd (SCEH) — an Australia-incorporated company jointly owned by GEIC (75% equity) and by GEIC's Hong King sister company Shenhua Hong Kong Limited (25% equity stake) — to facilitate GEIC's acquisition of a 75% equity stake in the 140 MW Woolnorth Wind Farm Project. Specifically, the funds were to partially used to refinance two existing term loans for the Woolnorth Wind Farm. The $170.37 million AUD loan was divided into three tranches: a $164.16 million AUD ($175.30 million USD) term loan tranche provided by all three lenders with a maturity period of five years, a $4.20 million AUD ($4.49 million USD) letter of credit tranche from NAB with a five-year maturity, and a $2.00 million AUD ($2.14 million USD) working capital tranche from NAB with a one-year maturity. BOC contributed $10.01 million AUD ($10.69 million USD) to the $164.16 million AUD term loan tranche. NAB contributed $129.33 million AUD ($138.10 million) and MHFG contributed $24.82 million AUD ($26.51 million USD) to the tranche. NAB was the mandated lead arranger. The proceeds of this loan were used by the borrower to facilitate the acquisition of a 75% stake in the two wind farms comprising the Woolnorth Wind Farm: the Woolnorth Studland Bay and Woolnorth Bluff Point Wind Farm. The acquisition was successfully completed. The Woolnorth Studland Bay Wind Farm has an installed capacity of 75 MW and 25 Vestas V90 turbines; it was commissioned in 2007. The Woolnorth Bluff Point Wind Farm has an installed capacity of 64.75 MW and 37 Vestas V66 wind turbines. It was commissioned in two stages from 2002 to 2004. Both wind farms are located in northwest Tasmania on the historic Woolnorth grazing property, and each provides about 2% of Tasmania's electrical energy needs in a year. Then, on June 28, 2016, financial close was reached on a deal in which a syndicate of four banks — BOC, the Industrial and Commercial Bank of China (ICBC), National Australia Bank Limited (NAB), and Sumitomo Mitsui Banking Corporation (SMBC) — provided a $135.22 million AUD ($100.02 million USD) syndicated loan to Woolnorth Wind Farm Pty Ltd — a special purpose vehicle (SPV) that jointly owned by GEIC (75% equity stake) and Hydro Tasmania (25% equity stake) — for the refinancing of the 140 MW Woolnorth Wind Farm Project. The $135.22 million AUD syndicated loan was divided into two tranches: a $133.22 million AUD ($98.54 million USD) credit facility tranche with a maturity period of five years and a final maturity date of June 28, 2021 that was provided by all four lenders and a $2.00 million AUD ($1.48 million USD) five-year letter of credit provided by NAB. BOC and ICBC each contributed $19.74 million AUD ($14.60 million USD) to the $133.22 million AUD tranche. Record ID#93902 captures BOC's contribution. Record ID#93903 captures ICBC's contribution.