ICBC contributes $28 million USD to a $115 million AUD syndicated loan for the 100 MW Haughton Solar Farm (Stage 1) Project (Linked to Record ID#101218)

Project narrative

On September 24, 2018, financial close was reached on a deal in which a syndicate of three banks — the Industrial and Commercial Bank of China (ICBC), National Australia Bank Limited (NAB) and Westpac Banking Corporation — provided a $115 million AUD syndicated loan to Pacific Hydro Pty Ltd — an Australia-based renewables company wholly owned by SPIC Pacific Energy Pty Ltd, a vehicle for Chinese state-owned enterprise State Power Investment Corporation Limited (SPIC) — for the Haughton Solar Farm (Stage 1) Project in Queensland. Each bank contributed $28.0 million USD to the syndicated loan. Record ID#93938 captures ICBC's contribution. The proceeds of this loan were to be used by the borrower for the construction of the first stage of the Haughton Solar Farm, a 100 MW solar farm in Upper Haughton, located 17 kilometers northwest from the township of Clare and 37 kilometers southwest of the township of Ayr in North Queensland. Specifically, the 1,181 hectare property site was owned by the Burdekin Shire Council and was surrounded by the Haughton River to the north, and Piccaninny and Oaky creeks to the south. The project also included the construction of 23 inverter stations, a 33 kV solar collector system, and a 33/275 kV substation and switchyard adjacent to the existing Queensland Electricity Generating Board-operated Ross substation, allowing the solar power's output to be transmitted to Strathmore electricity transmission line for use in the grid. Consisting of 400,000 photovoltaic modules, the Haughton Solar Farm was designed to generate energy equivalent to the demands of about 50,000 homes annually. Stage 1 was expected to offset about 320,000 tons of greenhouse gas emissions annually. Haughton is located an area with solar irradiance of 2,095 KWh per square meter per annum, and further stages were planned that would expand the solar farm's capacity to 500 MW. The project had an expected service life of 25 years. Pacific Hydro awarded a $175 million AUD engineering, procurement, and construction (EPC) contract to RCR Tomlinson for project implementation as well as the provision of operation and management (O&M) services for up to five years with an five-year extension. Jacobs Australia was responsible for hydraulic impact assessment study for the farm. Pacific Hydro signed a connection and access agreement with Powerlink to connect the plant through the new substation to the grid. Northern Consulting Engineers supplied a traffic assessment report for the project. AECOM Australia conducted an ecological assessment of the project site. Vision Surveys provided survey services for RCR. RCR Tomlinson began early works on November 10, 2017; it received a notice to proceed on or around May 1, 2018. It was expected that Haughton would begin commercial operations by early to mid-2019. Stage 1 was commissioned in 2019. On April 27, 2023, financial close was reached on a deal in which a syndicate of three banks — the Industrial and Commercial Bank of China (ICBC), National Australia Bank Limited (NAB) and Westpac Banking Corporation — entered into a $74.10 million AUD ($49.03 million USD) syndicated term loan agreement with Pacific Hydro Haughton Solar Farm Pty. Ltd — an Australia-incorporated special purpose vehicle (SPV) wholly owned by Pacific Hydro Pty Ltd, an Australia-based renewables company wholly owned by SPIC Pacific Energy Pty Ltd, a vehicle for Chinese state-owned enterprise State Power Investment Corporation Limited (SPIC) — for the 100 MW Haughton Solar Farm Refinancing Project. This loan carried a maturity period of one year and four months (1.333 years) and a final maturity date of August 30, 2024. Each lender contributed $24.70 million AUD ($16.34 million USD) to the loan syndicate. The proceeds were to be used by the borrower to refinance Stage 1 of the 100 MW Haughton Solar Farm in Upper Haughton, Queensland. Record ID# captures ICBC's contribution.