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Overview

Bank of China contributes $75 million AUD to a $600 million AUD syndicated loan to NSW Electricity Networks Finance Pty Limited for TransGrid's capital expenditures

Commitments (Constant USD, 2023)$52,000,468
Commitment Year•2021Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 10, 2021
Last repayment (originally scheduled)
Feb 9, 2026

Stakeholders

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

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • Mizuho Bank, Ltd.
  • National Australia Bank Limited (NAB)
  • Royal Bank of Canada (RBC)
  • United Overseas Bank Limited (UOB)
  • Westpac Banking Corporation

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • NSW Electricity Networks Finance Pty Limited

Loan description

Bank of China contributions to a $600 million AUD syndicated loan to NSW Electricity Networks Finance Pty Limited for TransGrid's capital expenditures

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On February 10, 2021, financial close was reached on a deal in which a syndicate of eight banks — including the Bank of China (BOC) — entered into a $600.00 million AUD ($464.37 million USD) syndicated term loan agreement with 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 TransGrid's capital expenditures. This loan carried a maturity period of five years. The proceeds of the facility were to be used by TransGrid for its capital expenditures, namely to finance pipeline projects and upgrades to its grid. TransGrid is the manager and operator of the high voltage electricity transmission network in New South Wales (ACT) and Australian Capital Territory (ACT). All lenders, including BOC, contributed $75.00 million AUD ($58.05 million USD) to the syndicated facility. In addition to BOC, the following lenders contributed to this syndicated facility: United Overseas Bank Limited (UOB), Westpac Banking Corporation, Royal Bank of Canada, National Australia Bank Limited (NAB), Mizuho Bank, Commonwealth Bank of Australia (CBA), and BNP Paribas S.A..

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").