ICBC contributes $8.58 million AUD to the $85.50 million AUD capex facility tranche of a $2.04 billion AUD syndicated loan for the refinancing and long-term lease (privatization) of Port Botany and Port Kembla (Linked to Record ID#94520 and #94521)

Project narrative

On May 31, 2013, financial close was reached on a deal in which a syndicate of 10 banks — including the Industrial and Commercial Bank of China (ICBC) — provided a $2.03976 billion AUD ($1.95732 million USD) syndicated loan to NSW Ports Finance Co. Pty. Ltd. — a special purpose vehicle jointly owned by Industry Funds Management (35.05%), AustralianSuper (20%), Tawreed Investments (19.99%), QSuper (15%), IFM-managed entities (9.96%) that operates as a finance subsidiary of NSW Ports — for the refinancing and long-term lease (privatization) of Port Botany and Port Kembla. This loan was divided into four tranches: a $972.11 million AUD ($932.82 million USD) term loan tranche with a maturity period of three years, a final maturity date of May 31, 2016, and an interest rate based on 3-month BBSY plus a margin of 175 basis points (bps); a $972.11 million AUD term loan tranche with a maturity period of five years, a final maturity date of May 31, 2018, and an interest rate based on 3-month BBSY plus a margin of 200 bps); a $85.50 million AUD ($82.04 million USD) capex facility tranche with a maturity period of three years, a final maturity date of May 31, 2016, and an interest rate based on 3-month BBSY plus a margin of 170 bps; and a $10.06 million AUD ($9.65 million USD) revolving credit facility tranche with a maturity period of three years, a final maturity date of May 31, 2016, and an interest rate based on 3-month BBSY plus a margin of 170 bps that was provided solely by Australia and New Zealand Banking Group (ANZ). ANZ acted as agent. ICBC contributed $87.67 million AUD ($84.13 million USD) to the three-year $972.11 million AUD tranche and to the five-year $972.11 million AUD tranche ($173.34 million AUD combined to these tranches). Each lender to these tranches contributed the exact same amount for both of these tranches. In addition to ICBC, the following lenders contributed the following amounts to each tranche: ANZ ($108.64 million AUD; $104.25 million USD), Canadian Imperial Bank of Commerce (CIBC) ($109.59 million AUD; $105.16 million USD), Crédit Agricole Group ($109.59 million AUD), ING Group N.V. ($109.59 million AUD), Sumitomo Mitsui Banking Corporation (SMBC) ($109.59 million AUD), National Australia Bank Limited (NAB) ($113.97 million AUD; $109.36 million USD), Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($91.96 million AUD; $88.24 million USD), DBS Bank ($65.76 million AUD; $63.10 million USD), and Korea Development Bank (KDB) ($65.76 million AUD; $63.10 million USD). Record ID#94520 captures ICBC's $87.67 million AUD contribution to the three-year $972.11 million AUD tranche. Record ID#94521 captures ICBC's $87.67 million AUD contribution to the five-year $972.11 million AUD tranche. ICBC contributed $8.58 million AUD ($8.23 million USD) to the $85.50 million AUD capex facility tranche. In addition to ICBC, the following lenders contributed to this tranche: ANZ ($10.06 million AUD; $9.65 million USD), CIBC ($10.71 million AUD; $10.28 million USD),Crédit Agricole Group ($10.71 million AUD), ING Group ($10.71 million AUD), SMBC ($10.71 million AUD), NAB ($11.15 million AUD; $10.70 million USD), DBS Bank ($6.43 million AUD; $6.17 million USD), and KDB ($6.43 million AUD). Record ID#94522 captures ICBC's $8.58 million AUD contribution to the $85.50 million AUD capex facility tranche. The proceeds of this loan were to be used by the borrower to support the privatization of Port Botany and Port Kembla, two of Australia's largest bulk and container terminals located in the Sydney area of New South Wales. Port Botany consisted of three container terminals, with container vessels berths that were to increase to 11 berths upon completion of an expansion, and a bulk liquid berth. Botany has a monopoly on coal shipment. Port Kembla, located south of Sydney in Wollongong, was known as a facility for exporting bulk products, such as steel and coal, and was Australia's largest import facility, notably a major vehicle importation hub. In October 2012, the Government of New South Wales, wishing to privatize ports to support further infrastructure spending and pay debt, issued a request for expressions of interest documents in the privation of the ports. Then, in April 2013, NSW Ports Consortium, a joint venture between Industry Funds Management (35.05%), AustralianSuper (20%), Tawreed Investments (19.99%), QSuper (15%), IFM-managed entities (9.96%), won the bid for the 99-year leases of the ports. The bidders contributed $3.0685 billion AUD ($2.94448 billion USD) in equity to back the $5.10826 billion AUD ($4.9018 billion USD) privatization. IFM Australian Infrastructure Fund contributed $1.38113 billion AUD ($1.32531 billion USD), Tawreed Investments contributed ($613.39 million AUD; $588.60 million USD), QSuper contributed ($460.27 million AUD; $441.67 million USD), and contributed AustralianSuper ($613.70 million AUD; $588.90 million USD). The lease was acquired at financial close on May 31, 2013. Bankers familiar with the deal expected the debt to be refinanced with bonds in the future, because the acquisition was conducted through short-term bullet debt with relatively low leverage.