Narrative
Full Description
Project narrative
On June 7, 2018, financial close was reached on a deal in which a syndicate of 14 banks — including the Bank of China (BOC) and China Construction Bank Corporation (CCB) — entered into a $4.2 billion AUD syndicated loan agreement with NSW Electricity Networks Finance Pty Limited — a special purpose vehicle (SPV) that serves as the financing vehicle for the NSW Electricity Networks (NSWEN) group — for the TransGrid Refinancing Project. The proceeds from the $4.2 billion AUD debt were to be used by the borrower to refinance TransGrid’s existing senior debt facilities. TransGrid is the manager and operator of the high voltage electricity transmission network in New South Wales (ACT) and Australian Capital Territory (ACT). Each lender, including BOC and CCB, contributed $229.3 million USD to the loan syndicate. In addition to BOC and CCB, the following banks participated in this syndicated loan: MUFG Bank, Ltd., Mizuho Financial Group (MHFG), Australia and New Zealand Banking Group (ANZ), National Australia Bank Limited (NAB), Commonwealth Bank of Australia (CBA), Société Générale S.A. (SocGen), BNP Paribas S.A., HSBC Bank PLC, RBC Capital Markets, United Overseas Bank Limited (UOB), the Bank of Nova Scotia (Scotiabank), and Norinchukin Bank (Nochu Bank). Record ID#94559 captures BOC's contribution. Record ID#94560 captures CCB's contribution.
Staff comments
1. NSW Electricity Networks Finance Pty Limited is the financing vehicle for the NSW Electricity Networks (NSWEN) group. NSWEN's principal asset is TransGrid, the monopoly high voltage electricity transmission service provider in the state of New South Wales and the Australian Capital Territory. TransGrid was acquired by a consortium of security holders under a 99-year lease from the New South Wales state government in a 2015 privatization (see "Our History - Meeting NSW & ACT's Energy Needs - Transgrid"). The shareholders of TransGrid included Canadian pension fund Caisse de depot et placement du Quebec (24.99%), Morrison & Co-managed Utilities Trust of Australia (15.01%), Spark Infrastructure (15.01%), Abu Dhabi Investment Authority's Tawreed Investments (19.99%), and Kuwait Investment Authority's Wren House Infrastructure Management. In July 2020, Canadian public pension fund Ontario Municipal Employees Retirement System (OMERS) purchased a 19.99% stake from TransGrid from shareholder and Kuwait Investment Authority investment vehicle Wren House Infrastructure Management (a deal supported by Bank of China (BOC); see Record ID#93829) (see "OMERS acquires TransGrid stake from Wren House").