China Merchants Bank contributes $13.18 million AUD to the $144.98 million AUD credit facility tranche of a $639.43 million AUD syndicated loan for the Port of Newcastle 2021 Refinancing Project (Linked to Record ID#95822, #95823, #95824, #95825, and #95827)

Project narrative

On December 18, 2015, financial close was reached on a deal in which a syndicate of seven lenders — including the Industrial and Commercial Bank of China (ICBC) — entered into a $897.00 million AUD ($639.15 million USD) syndicated loan agreement with Port of Newcastle Investments Financing Pty Ltd. — a special purpose vehicle (SPV) that is jointly owned by The Infrastructure Fund (TIF) (50% ownership stake) and China Merchants Port Holdings Company (50% ownership stake) — for the Port of Newcastle 2015 Refinancing Project. This syndicated loan consisted of four tranches: a $502.00 million AUD ($357.70 million USD) term loan tranche with a maturity period of three years and a maturity date of December 18, 2018; a $320.00 million AUD ($228.01 million USD) term loan tranche with a maturity period of five years and a maturity date of December 20, 2020; a $60.00 million AUD ($42.75 million USD) capex term loan tranche with a maturity period of three years and a maturity date of December 18, 2018; and a $15.00 million AUD ($10.69 million USD) revolver tranche with a maturity period of three years and a maturity date of December 18, 2018. ICBC contributed $63.00 million AUD ($44.89 million USD) to the $502 million AUD term loan, as captured by Record ID#95701 captures ICBC's contribution. ICBC contributed $80.00 million AUD ($57.00 million USD) to the $320 million AUD term loan, as captured Record ID#95702 captures ICBC's contribution. ICBC contributed $7.00 million AUD ($4.99 million USD) to the $60 million AUD capex term loan, as captured by Record ID#95744. On July 23, 2018, financial close was reached on a deal in which a syndicate of 10 banks — including the Bank of China (BOC), the Bank of Communications (BoComm), and ICBC — entered into a $948 million AUD ($703.59 million USD) syndicated loan agreement with Port of Newcastle Investments Financing Pty Ltd. for the Port of Newcastle 2018 Refinancing Project. This loan was split into four tranches: a $515.00 million AUD ($382.23 million USD) term loan tranche with a maturity period of three years and a maturity date of July 23, 2021; a $343.00 million AUD ($254.57 million USD) term loan tranche with a maturity period of five years and a maturity date of July 23, 2023; and a $75.00 million AUD ($55.66 million USD) with a maturity period of three years and a maturity date of July 23, 2021; a $15.00 million AUD ($11.13 million USD) revolver term loan with a maturity period of three years and a maturity date of July 23, 2021. The interest rate was said to based on BBSY plus a margin in the 100s basis points (bps) range. The proceeds of this loan were used to refinance existing facilities, to pay transaction costs, and provide capex drawdowns and working capital for the Port of Newcastle in New South Wales; specifically, refinancing the 2015 $897 million AUD syndicated loan. BOC contributed $36.05 million AUD ($26.76 million USD), BoComm contributed $36.05 million AUD, and ICBC contributed $67.80 million AUD ($50.32 million USD) to the $515 million AUD term loan tranche. Record ID#95703 captures BOC's contribution. Record ID#95704 captures BoComm's contribution. Record ID#95705 captures ICBC's contribution. BOC contributed $38.75 million AUD ($28.76 million USD), BoComm contributed $38.75 million AUD, and ICBC contributed $47.00 million AUD ($34.88 million USD) to the $343 million AUD term loan tranche. Record ID#95817 captures BOC's contribution. Record ID#95818 captures BoComm's contribution. Record ID#95819 captures ICBC's contribution. ICBC contributed $10.00 million AUD ($7.42 million USD) to the $75 million AUD term loan tranche. Record ID#95820 captures ICBC's contribution. Then, on May 7, 2021, financial close was reached on a deal in which a syndicate of 11 banks — including the Agricultural Bank of China, BOC, BoComm, China Everbright Bank, China Merchants Bank, and ICBC — entered into a $639.43 million AUD ($497.16 million USD) syndicated loan agreement with Port of Newcastle Investments Financing Pty Ltd. for the Port of Newcastle 2021 Refinancing Project. This loan was split into two tranches: a $494.5 million AUD ($384.44 million USD) sustainability-linked 'green' loan (SLL) with a maturity period of five years, a maturity date of May 7, 2026, and an interest rate of BBSW plus an estimated margin between two and six bps; and a $144.98 million AUD ($112.72 million USD) credit facility tranche with a maturity period of two years and six months (2.5 years) and an interest rate of BBSW plus an estimated margin of two to six bps. The proceeds of this loan were used for the refinancing of the Port of Newcastle in New South Wales; specifically, refinancing the 2018 $948 million AUD syndicated loan. The exact interest rate of the SLL green loan was determined by the Port of Newcastle's compliance with social and environmental metrics, with lower margins to be met if compliance on these metrics was achieved: keeping its Scope 1 and 2 greenhouse gas emissions below the 2025 trajectory level; ensuring that existing and new suppliers are screened for modern slavery risks and that engagement occurs when higher risk is identified; establishing an Aboriginal and Torres Strait Islander student internship program with the University of Newcastle; acquiring accreditation of mental health first aiders in each of the port's departments; and demonstrating progress under Sustainability Advantage Recognition Scheme of the New South Wales Government. All 11 lenders, including the six Chinese state-owned banks, contributed $44.95 million AUD ($34.95 million USD) to the $494.45 million AUD SLL tranche and $13.18 million AUD ($10.25 million USD) to the $144.98 million AUD credit facility tranche. In addition to the six Chinese state-owned banks, the following lenders contributed to the loan syndicate: National Australia Bank Limited (NAB), Commonwealth Bank of Australia (CBA), RBC Capital Markets, First Commercial Bank, and Citigroup. Previous lenders to the Port of New Castle, including Australia and New Zealand Banking Group (ANZ), DBS Bank, Mizuho Bank, and DBS Bank, declined to participate in this round of refinancing amidst a shift in banks financing coal-related projects, of which the port is a major exporter of. Some bankers also raised concerns that the fact that a coal port receiving an SLL would harm the credibility of the financing mechanism. NAB served as Sustainable Finance Structuring Coordinator. Record ID#95706 captures ABC's contribution to the $494.45 million AUD SLL tranche. Record ID#95707 captures BOC's contribution. Record ID#95708 captures BoComm's contribution. Record ID#95709 captures China Everbright Bank's contribution. Record ID#95710 captures China Merchants Bank's contribution. Record ID#95711 captures ICBC's contribution. Record ID#95822 captures ABC's contribution to the $144.98 million AUD credit facility tranche. Record ID#95823 captures BOC's contribution. Record ID#95824 captures BoComm's contribution. Record ID#95825 captures China Everbright Bank's contribution. Record ID#95826 captures China Merchants Bank's contribution. Record ID#95827 captures ICBC's contribution.