Bank of China contributes $79.6 million USD to a $715 million AUD syndicated loan for the Loy Yang B Power Plant Acquisition Project (Linked to Record ID#94378, #94379, and #94380)

Project narrative

On November 23, 2017, Chow Tai Fook Enterprises, owner of Alinta Energy, entered into a conditional binding agreement to purchase the total share in the Loy Yang B Power Plant from its owners ENGIE S.A. (70%) and Mitsui & Co. (30%) for a consideration of approximately $1.2 billion AUD. Then, on January 15, 2018, financial close was reached on the acquisition. To help finance the acquisition, a syndicate of seven banks — including the Bank of China (BOC) — provided a $715 million AUD syndicated loan to Latrobe Valley Power (Finance) Pty Ltd — a special purpose vehicle (SPV) that is wholly owned by Alinta Energy — for the Loy Yang B Power Plant Acquisition Project. This loan carried a maturity period of five years, an interest rate based on BBSY plus a margin of 235 basis points (bps), and a 40% commitment fee of the margin. The borrower used the proceeds of this loan to support its purchase of the Loy Yang B Power Plant. It is Victoria's newest and most efficient coal plant, generating ~17% of Victoria's power. BOC provided $79.6 million USD in debt financing to the syndicate. In addition to BOC, the following banks contributed to the syndicated loan: Australia and New Zealand Banking Group ($79.6 million USD contribution), Sumitomo Mitsui Banking Corporation (SMBC) ($79.6 million USD contribution), DBS Group Holdings Ltd. ($79.6 million USD contribution), Standard Chartered Bank PLC ($79.6 million USD contribution), UOB-Kay Hian Holdings Ltd. ($79.6 million USD contribution), and Intesa Sanpaolo S.p.A.. Then, on March 30, 2021, financial close was reached on a deal in which a syndicate of seven banks — including the Bank of China (BOC), China Everbright Bank, and China Merchants Bank Co., Ltd. — provided a $440.5 million AUD syndicated loan to Alinta Energy Pty Limited for the Loy Yang B Power Plant Refinancing Project. The proceeds were used by the borrower to refinance the $715 million AUD acquisition loan that was used to purchase the Loy Yang B Power Plant. The coal-fired 1050 MW Loy Yang B is located in the Latrobe Valley in the State of Victoria. It is Victoria's newest and most efficient coal plant, generating ~17% of Victoria's power. BOC's contribution to the loan is captured by Record ID#94378. China Everbright's contribution to the loan is captured by Record ID#94379. China Merchant Bank's contribution to the loan is captured by Record ID#94380.