Narrative
Full Description
Project narrative
On October 8, 2018, financial close was reached on a deal in which a syndicate of eight banks — including the Bank of Communications (BoComm) —entered into a $645.84 million AUD ($455.85 million USD) syndicated loan agreement with Southern Way Finance Pty Ltd. — a special purpose vehicle (SPV) for equity investors State Super SAS Trustee Corp (41.13%), Commonwealth Super Group (34.17%) and Prime Super (24.6%) — for the Peninsula Link Public-Private Partnership (PPP) Refinancing Project. This loan was divided into two tranches: a $322.92 million AUD ($227.92 million USD) term loan tranche with a maturity period of five years and a final maturity date of October 8, 2023 and a $322.94 million AUD ($227.94 million USD) term loan tranche with a maturity period of ten years and a final maturity date of October 8, 2028. All lenders served as mandated lead arrangers. BoComm contributed $20.38 million AUD ($14.38 million USD) to the five-year $322.92 million AUD term loan tranche. In addition to BoComm, the following lenders contributed the respective amounts to the tranche: MUFG Bank, Ltd. ($53.82 million AUD; $37.99 million USD), Australia and New Zealand Banking Group (ANZ) ($25.00 million AUD; $17.65 million USD), National Australia Bank Limited (NAB) ($53.82 million AUD), Sumitomo Mitsui Banking Corporation (SMBC) ($53.82 million AUD), Westpac Banking Corporation ($53.82 million AUD), Commonwealth Bank of Australia (CBA) ($53.82 million AUD), and Sumitomo Mitsui Trust Bank, Limited (SMTB) ($8.44 million AUD; $5.96 million USD). Record ID#94610 captures BoComm's contribution to the five-year $322.92 million AUD term loan tranche. BoComm contributed $20.38 million AUD to the ten-year $322.94 million AUD term loan tranche. In addition to BoComm, the following lenders contributed the respective amounts to the tranche: MUFG Bank ($53.82 million AUD), ANZ ($25.00 million AUD), NAB ($53.82 million AUD), SMBC ($53.82 million AUD), Westpac ($53.82 million AUD), CBA ($53.82 million AUD), and SMTB ($8.44 million AUD). Record ID#94611 captures BoComm's contribution to the ten-year $322.94 million AUD term loan tranche. The proceeds of this loan were to be used by the borrower to refinance the availability-payment based Peninsula Link PPP, a four-lane 27-kilometer long motorway in the Melbourne area that connects Melbourne's east and south, specifically linking EastLink at Carrum Downs to the Mornington Peninsula Freeway at Mouth Martha, south of Melbourne. The Peninsula Link freeway features nine interchanges, eight rother grade separations, 40 water crossings, and a 23 kilometer shared use path. Construction was completed in early 2013.
Staff comments
1. "Plenary completes $646 million Peninsula Link refinancing" from Plenary, acting on behalf of the Southern Way consortium, describes the refinancing as involving all "eight existing banks – including all four major domestic banks and four leading international banks" as participating in the refinance, suggesting Bank of Communications had earlier provided a loan for the Peninsula Link PPP. However, Bank of Communications as not reported as lender during the last refinance of this project, in 2014 (see "Aus & NZ: US private placement considered for Peninsula Link PPP refinance" for a list of the lenders to the 2014 refinancing). This issue merits further investigation.