Narrative
Full Description
Project narrative
On December 16, 2015, Chinese state-owned enterprise State Power Investment Corporation Limited (SPIC) entered into an share sale agreement with IFM Investors Ltd. in which SPIC would acquire 100% of the equity of Australian renewable energy company Pacific Hydro Pty Ltd from IFM. Then, in late January 2016, seven banks — including the Sydney Branch of China Construction Bank Corporation (CCB), Bank of China (BOC), Bank of Communications (BoComm), Industrial and Commercial Bank of China (ICBC) — entered into two syndicated bridge loans, totaling $2.5 billion USD, with an unspecified Australian subsidiary of SPIC to finance the entire cost of SPIC's acquisition of Pacific Hydro. The two syndicated loans consisted of a loan with a $1 billion AUD facility tranche and a $950 million USD facility tranche provided by a three-bank syndicate and a $750 million USD loan provided by a five-bank syndicate. Both loans had a maturity period of 12 months (one year). SPIC provided parent guarantees for the debt. The acquisition was completed on January 28, 2016. Record ID#49844 captures CCB's contribution. Record ID#95643 captures BOC's contribution. Record ID#95644 captures BoComm's contribution. Record ID#95645 captures ICBC's contribution. Then, in late January or early February 2017, a syndicate of banks — including BOC, CCB, ICBC, and Australia and New Zealand Banking Group (ANZ), acting as joint mandated lead arrangers — signed a $1.6 billion AUD syndicated facility loan agreement with SPIC Pacific Hydro Pty Ltd. The proceeds of this loan were used to refinance the January 2016 facilities and for general corporate purposes. Record ID#95647 captures BOC's contribution. Record ID#95648 captures CCB's contribution. Record ID#95649 captures ICBC's contribution. Then, in January 2020, a syndicate of banks entered into a three-year $1.6 billion AUD loan with Pacific Hydro to refinance its debt. This loan carried a maturity period of three years and was at swaps plus 0.9% percent. Then, in late January 2023, a syndicate of banks — including BOC, BoComm, CCB, China Merchants Bank, and ICBC — entered into a $1.5 billion AUD syndicated facility with Pacific Hydro to refinance the previous facility. BOC and CCB served as arrangers. The proceeds of the loan were to be used for general corporate purposes. Record ID#95650 captures BOC's contribution. Record ID#95651 captures BoComm's contribution. Record ID#95652 captures CCB's contribution. Record ID#95653 captures China Merchants Bank's contribution. Record ID#95654 captures ICBC's contribution.
Staff comments
1. SPIC Pacific Hydro Pty (formerly known as Pacific Hydro) is an Australian renewable energy company that develops, builds, and operates clean energy projects, with a focus on hydroelectric, wind, and solar power. Founded in the early 1990s, the company was one of the pioneers in Australia’s renewable energy sector and later expanded internationally, particularly in Latin America (notably Chile and Brazil). In early 2016, China’s State Power Investment Corporation (SPIC) acquired Pacific Hydro from IFM Investors. Since then, Pacific Hydro has operated as a wholly owned subsidiary of SPIC, and in formal registrations it appears as SPIC Pacific Hydro Pty Ltd. 2 . The individual contribution of the six known lenders to this $1.5 billion AUD syndicated loan is unknown except for ABC's $200 million AUD contribution. For the time being, AidData has estimated the contribution of China Banks by assuming that each lender contributed an equal amount ($325000000 AUD) to the syndicated loan.