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Overview

ICBC contributes $20.00 million AUD to a $250 million AUD syndicated loan to United Energy Distribution to fund capital expenditure, refinance existing senior debt facilities and for general corporate purposes in 2016 (Linked to Record ID#94278)

Commitments (Constant USD, 2023)$16,219,145
Commitment Year•2016Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 28, 2016
Last repayment (originally scheduled)
Oct 27, 2021

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

  • Australia and New Zealand Banking Group (ANZ)
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Sumitomo Mitsui Trust Bank, Limited (SMTB)
  • Westpac Banking Corporation

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • United Energy Distribution Pty Ltd (UED)

Loan description

ICBC and BOC contributions to a $250 million AUD syndicated loan to United Energy Distribution to fund capital expenditure, refinance existing senior debt facilities and for general corporate purposes in 2016

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On October 28, 2016, financial close was reached on a deal in which a syndicate of eight banks — the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) — provided a $250 million AUD ($189.85 million USD) loan to United Energy Distribution Pty Ltd (UED) — a special purpose vehicle and joint venture of DUET Group (66% equity stake) and SGSP Australia Assets (34% equity stake). This revolving loan carried a maturity period of five years and a maturity date of October 28, 2021. ICBC and BOC each contributed $20.00 million AUD ($15.19 million USD) to this syndicated loan. In addition to these banks, the following banks contributed the following amounts to the loan: Australia and New Zealand Banking Group ($40.00 million AUD; $30.38 million USD), MUFG Bank, Ltd. ($40.00 million AUD), Commonwealth Bank of Australia (CBA ($30.00 million AUD; $22.78 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($40.00 million AUD), Sumitomo Mitsui Trust Holdings ($20.00 million AUD), and Westpac Banking Corporation ($40.00 million AUD). The proceeds of this loan were to be used by the borrower to fund capital expenditure, refinance existing senior debt facilities and for general corporate purposes. Record ID#94277 captures ICBC's contribution. Record ID#94278 captures BOC's contribution.

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. SGSP Australia is 60% owned by State Grid Corporation of China and 40% by Singapore Power.