ICBC contributes $70.83 million AUD to a $425 million AUD syndicated loan for the 209 MW Murra Warra Wind Farm Phase 2 Project

Project narrative

On July 30, 2020, financial close was reached on a deal in which a syndicate of six banks — including the Industrial and Commercial Bank of China (ICBC) — provided a $425.00 million AUD ($304.76 million USD) syndicated loan to Murra Warra II Finco Pty Ltd — a special purpose vehicle (SPV) initially owned by RES Australia Pty Ltd (50% equity) and Macquarie's Green Investment Group (GIG) (50% equity) — for 209 MW Murra Warra Wind Farm Phase 2 Project. This loan carried a maturity period of five years and a final maturity date of July 30, 2025. In addition to ICBC, the following banks contributed: ING Bank N.V., Mizuho Bank, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation (SMBC), and Société Générale S.A. (SocGen). Each bank, including ICBC, contributed $70.83 million AUD ($50.79 million USD) to the syndicated loan. MUFG served as the account bank. This loan was securitized. In addition to the $425 million AUD, the Murra Warra Wind Farm Phase 2 Project was financed by a $15.00 million AUD ($10.76 million USD) five-year letter letter of credit from MUFG and SMBC and $180.00 million AUD ($129.07 million USD) of equity. Concurrently at the financial close of the farm, Swiss-based private equity firm Partners Group Holding AG acquired a 100% equity in Murra Warra II Finco Pty Ltd and Murra Warra Wind Farm Phase 2 Project for $180 million AUD ($128.5 million USD). This debt financing was raised in alignment with the Asia Pacific Loan Market Association’s Green Loan Principles, and was believed to be the first instance of a project finance green backing the construction of an Australian wind farm. The proceeds of this loan were to be used to construct a 209 MW wind farm located near Horsham in Western Victoria, adjacent to the 61 turbine first stage of the Murra Wind Farm. Murra Warra II consisted of 38 General Electric Cypress 5.5 MW turbines, and was capable of generating enough energy to power 150,000 homes in Victoria. It was expected to offset carbon dioxide emissions by about 468,000 tons annually. Murra Wind II was supported by a 15-year Power Purchase Agreement with Australian utility state-owned Snowy Hydro for 100% of the energy generated by the farm and 50% of its green products. The Murra Warra Wind Farm complex is one of the largest in the Southern Hemisphere. In January 2017, Macquarie had acquired 50% of the Murra Warra Wind Farm Project; it was then split into two stages to accelerated its development. In March 2018, 226 MW Murra Warra I was financially closed and then sold to Partners Group for $200 million AUD. General Electric International was awarded an engineering, procurement, and construction (EPC) contract for project implementation. It subcontracted work to Zenviron. RES Australia was charged to act as the construction management contractor and the asset management contractor under a long-term agreement. Allthread Industry provided 38 anchor cages for the wind farm. Ethos Urban prepared economic and community benefits planning for Murra Warra II. icubed served as engineer. Precision Oxycut and Milltech Martin Bright served as steel processors. GE Renewable Energy provided the wind turbines. BlueScope and InfraBuild were the manufacturers. AusNet Transmission Group Pty Ltd was contracted for connection services. The project was planned to begin construction in August 2020 and was to be completed by mid-2022. The project entered implementation.. The project reached commercial operations in 2023.