Bank of China contributes $167 million USD to the $2.4 billion USD construction term loan of a $2.9969 billion USD syndicated loan for the Wiggins Island Coal Export Terminal Project (Linked to Record ID#95098, #95099, #95100, #95101, #95102, #95103, #95104, and #95105)

Project narrative

On September 9, 2011, financial close was reached on a deal in which a syndicate of banks — including the Bank of China (BOC), China Development Bank Corporation (CDB), and the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — entered into a $2.9969 billion USD ($3.08549 billion AUD) syndicated loan agreement with Wiggins Island Coal Export Terminal Pty Ltd (WICET) — a special purpose vehicle (SPV) and joint venture of Aquila Resources, Bandanna Energy, Caledon Resources, Cockatoo Coal, Northern Energy Corporation, Xstrata Coal, Yancoal Australia, and Wesfarmers Curragh — for the Wiggins Island Coal Export Terminal Project. This syndicated loan facility consisted of five tranches: a $2.4 billion USD ($2.47094 billion AUD) non-recourse construction term loan tranche with a maturity period of three years and an interest rate of LIBOR plus a margin of 300 basis points (bps) provided by a syndicate; a $350 million USD ($360.35 million AUD) cost-overrun term loan tranche with a maturity period of four years; a $100 million USD ($102.96 million AUD) equity bridge term loan tranche with a maturity period of one year; a $48.97 million USD ($50.42 million AUD) working capital tranche with a maturity period of four years and a final maturity date of September 30, 2018; and a $97.93 million USD ($100.82 million AUD) letter of credit tranche with a maturity period of seven years and a final maturity date of September 30, 2018. BOC contributed $167 million USD, CDB contributed $229 million USD, and ICBC (Asia) contributed $93 million USD to the $2.4 billion USD term loan. In addition to the three banks, the following lenders contributed the respective amounts to the tranche: Commonwealth Bank of Australia (CBA) ($237 million USD), Korea Development Bank (KDB Bank) ($209 million USD), DBS Bank ($167 million USD), National Australia Bank Limited (NAB), Banco Santander, S.A. ($125 million USD), ING Bank ($125 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($167 million USD), Australia and New Zealand Banking Group (ANZ) ($125 million USD), BOS (International) Australia ($125 million USD), the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($84 million USD), Export Finance and Insurance Corporation (EFIC) ($84 million USD), Export Development Canada (EDC) ($42 million USD), KfW-IPEX Bank GmbH ($93 million USD), Westpac Banking Corporation ($42 million USD), BNP Paribas S.A. ($63 million USD), and Mizuho Corporate Bank, Ltd. (MHCB) ($84 million USD). Record ID#95097 captures BOC's contribution. Record ID#95098 captures CDB's contribution. Record ID#95099 captures ICBC (Asia)'s contribution. EFIC provided a $100 million USD export finance guarantee for a portion of the $2.4 billion USD construction loan tranche. BOC contributed $24 million USD, CDB contributed $33 million USD, and ICBC (Asia) contributed $13 million USD to the $350 million USD term loan tranche. In addition to the three Chinese banks, the following lenders contributed to the tranche: ANZ, Santander, BNP Paribas, BOS (International), CBA, DBS Bank, EDC, ING, KfW, Mizuho, NAB, SMBC, BTMU, KDB Bank, and Westpac. Record ID#95100 captures BOC's contribution. Record ID#95101 captures CDB's contribution. Record ID#95102 captures ICBC (Asia)'s contribution. The $97.93 million USD letter of credit tranche did not feature any Chinese banks; ANZ provided $25 million AUD, NAB provided $25 million AUD, and Westpac provided $50 million AUD. The $48.97 million USD working capital tranche did not feature any Chinese banks; ANZ was the sole provider of the loan. The $100 million USD equity bridge term loan did not feature any Chinese banks; ANZ provided the loan. BOC, CDB, ANZ, CBA, BOS International, KDB Bank, DBS, ING, NAB, Santander and SMBC served as mandated lead arrangers. ICBC, KFW-IPEX, BTMU, Westpac, EFIC, and MHCB served as lead arrangers. BNP Paribas and EDC served as arrangers. The sponsors of the project contributed $275 million AUD as preference shares for the project. The project also received mezzanine debt worth $450 million AUD and $50 million USD in Gladstone Long Term Securities (GLTS) featuring 13 participants. Then, on September 25, 2018, financial close was reached on a deal in which a syndicate of 22 banks — including BOC, CDB, and the Industrial and Commercial Bank of China (ICBC) — entered into a $2.56958 billion USD syndicated loan agreement with WICET for the Wiggins Island Coal Export Terminal 2018 Refinancing Project. The proceeds of this loan were to be used by the borrower for the refinancing of the Wiggins Island Coal Export Terminal. This syndicated loan was divided into two tranches: a $2.55154 billion USD term loan tranche with a maturity period of eight years, a final maturity date of September 25, 2026, and an interest rate of LIBOR plus a margin of 325 bps and a $18.04 million USD letter of credit tranche with a maturity period of eight years, a final maturity date of September 25, 2026, and an interest rate of LIBOR plus a margin of 325 bps BOC, CDB, ICBC, and all lenders, except DBS Bank which contributed contributed $221.88 million USD, $110.94 million USD to the $2.55154 billion USD term loan tranche. Record ID#95103 captures BOC's contribution. Record ID#95104 captures CDB's contribution. Record ID#95105 captures ICBC (Asia)'s contribution. The proceeds of this loan were to be used by the borrower to finance the construction and operation of the Wiggins Island Coal Export Terminal in the Port of Gladstone, Queensland. Specifically, the Wiggins Island Coal Export Terminal is located on 140 hectares of land at Golding Point, to the west of the existing RG Tanna Coal Terminal. This project involved the construction of an offshore wharf capable of accommodating vessels ranging from 40,000 deadweight tonnage (DWT) to 220,000 DWT, and loading facilities situated north of Wiggins Island, adjacent to the Targinie Channel and rail unloading facilities located immediately south of the North Coast Line (NCL) connected to the Golding Point stockyard via a 5.6 kilometer long overland conveyor. The project also included the construction of a stockyard area for 1.9 million tons of coal, materials handling and sampling systems to feed the 2-kilometer long jetty conveyor, a single berth with a travelling ship loader capable of filling ships at 8,250 tons per hour, a 132 kV substation, access roads, workshops, administrative offices, and amenities. The terminal was designed to have an annual throughput of 27 million tons per annum (mtpa). The Wiggins Island Coal Export Terminal was first proposed in 2010 by WICET. By the end of September 2010, eight coal companies had made commitments to export 27 million tons of coal via the terminal, enough to allow the project to advance. A second and a third phase, to increase the terminals' capacity to 80 mtpa, were envisioned after completion of the terminal. Associated with the Wiggins Island Coal Export Terminal Project was the Wiggins Island Rail Project (WIRP), which sought to construct rail segments to service the coal terminal, including the construction of a 13 kilometer rail balloon loop near Yarwun, triplication of 3.5 kilometer of the NCL through Yarwun to connect to the Wiggins Island Balloon Loop, the construction of 2.5 kilometers of holding track at Aldoga. the construction of two holding tracks (approx. 5.5 kilometers) at Kabra, the upgrade of existing rail formation to the east of the Moura system, the duplication of 18 kilometers of track between Rocklands and Stanwell and of 24 kilometers of track between Dingo and Bluff, the upgrade of 16 kilometers of access road, and the construction of a 2 kilometer passing loop and two access easements on the Bauhinia Line between Kinrola and Sirius Creek. Worley Parsons served as procurement, construction and management (PMC) contractor via an October 2011 contract; it was responsible for procurement, construction management, commissioning, and handover. A joint venture of Van Oord Australia and Dredging International Australia (DEME) was the dredging contractor via an August 2011 contract. John Holland was contracted, via a $235 million USD February 10, 2012 contract, for construction works on the stockyards, the supply of equipment related with in-loading, stacking, reclaiming, and out-loading systems, the installation of 13 pre-fabricated substations, and the project's primary electrical, control, communication, and piping reticulation. On April 2, 2012 WICET awarded Monadelphous Group Limited two contracts worth $135 million USD for the construction and commissioning of a ship loader and the provision of fabricated steelwork and mechanical components for the stacker bridges and runway support gantries. Monadelphous tapped PDC Consultants to provide Building Information Modelling (BIM) consultancy services. Monadelphous Muhibbah Marine (MMM) company, a joint venture of Monadelphous Group Ltd and Muhibbah Construction Pty Ltd, a subsidiary of Malaysian-based marine contractor Muhibbah Engineering (M) Bhd, was responsible via a December 2011 $320 million USD contract to construct a 1.8 kilometer approach jetty and ship berth including a wharf, wharf conveyor, berthing and mooring dolphins, ship access platforms, jetty conveyor, and transfer tower. AGJV, a joint venture between Abigroup and Golding, and Civil Mining Construction, were the earthworks contractors. Abigroup was also responsible, via a June 22, 2012 civil works contract, for the balloon loop. ABB was responsible via an October 2012 contract to provide electrical and automation systems for the conveyors. BMD was responsible for civil and structural works within the Gladstone-Mt Larcom Road corridor, such as roadwork and bridges for both public and project-relevant use. Tracey Brunstrom & Hammond Pty Ltd (TBH) provided programming advice, contractual claims analysis, and cost management and dispute resolution services. Data#3 provided a technology solution for the terminal including a site-wide communications network, information system platforms, and associated technology. DBM Vircon was contracted for the design and detailing of the lifting frames for the east and west Stacker Bridge, stacker legs, central carriage, and tripper for the lifting of the bridges to the site. Sinostruct was responsible for bridge work. MMM awarded a contract to TWE Pty. Ltd. for the supply of special class welders, painters, and supervisors to assist in the construction of offshore plant and wharf and jetty infrastructure. Aurecon was responsible for design of the terminal. Construction began around financial close in September 2011. The project had an anticipated completion date of 2015. In October 2013, Bloomberg reported that slumping coal demand globally was expected to leave the terminal operating at half of its 27 million ton capacity. In April 2014, RenewEconomy.com expressed skepticism about the terminals' financial viability due to record low coal prices and the strength of the Australian dollar. Furthermore, in October 2014, the Sydney Morning Herald reported that the terminal had experienced delays in construction due to cost disputes with its contractors. Nonetheless, the terminal opened in April 2015. In 2018-19, approximately 11.4 million tons of coal were exported from WICET. In 2019, the terminal operated at less than 50% of its designed capacity. Queensland Government-owned Gladstone Ports Corporation operates the terminal.