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Overview

ICBC contributes to a $120 million AUD loan to United Energy for the refinancing of its corporate debt

Commitments (Constant USD, 2023)$47,137,801
Commitment Year2015Country of ActivityAustraliaDirect Recipient Country of IncorporationAustraliaSectorEnergyFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 17, 2015
Last repayment (originally scheduled)
Feb 16, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • National Australia Bank Limited (NAB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • United Energy (UE)

Loan description

ICBC contributions to a $120 million AUD loan to United Energy for the refinancing of its corporate debt

Interest typeUnknownMaturity5 years

Narrative

Full Description

Project narrative

On February 17, 2015, it was announced that financial close had been achieved in which a two-bank syndicate — consisting of the Industrial and Commercial Bank of China (ICBC) and National Australia Bank Limited (NAB) — entered into a $120.0 million AUD syndicated revolving bank debt facility with United Energy (UE) — a special purpose vehicle and joint venture of DUET Group (66% equity stake) and SGSP Australia Assets (34% equity stake) — to refinance UE's corporate debt. This facility carried a maturity period of five years and a maturity date of February 2020. The proceeds of this facility were to be used to refinance UE's existing facilities.

Staff comments

1. United Energy (UE) is a Victoria-based electricity distributor, serving approximately 660,000 customers across east and southeast Melbourne and the Mornington Peninsula. The distribution network transports electricity from the high voltage transmission network to residential, commercial and industrial electricity users. It covers 1,472 square kilometers and includes 46 zone substations, about 215,000 poles, 12,600 distribution substations, approximately 10,200 kilometers of overhead power lines, and 2,600 kilometers of underground cables. 2. The precise breakdown of ICBC and NAB's contributions to this $120.0 million AUD loan is unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed equally ($60.0 million AUD) to the syndicated loan.