Narrative
Full Description
Project narrative
On May 19, 2011, a syndicate of 15 banks — including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — entered into a $2.50354 billion AUD ($2.68597 billion USD) syndicated senior loan agreement with SA Health Partnership Securitisation Pty Ltd (later renamed as Celsus Securitisation Pty Limited) — an Australia-incorporated special purpose vehicle (SPV) then jointly owned by InfraRed Infrastructure Fund III (30.58% equity stake), Leighton Contractors (19.9% equity stake), John Laing Group plc (17.26% equity stake), Uberior Infrastructure Investments Limited (17.26% equity stake), and Macquarie Capital (15% equity stake) — for the New Royal Adelaide Hospital Public-Private Partnership (RAH PPP) Project. This debt carried a tenor (maturity) of seven years, a final maturity date of May 18, 2018, and an interest rate based on and an interest rate of BBSY plus a margin between 245 basis points (bps) and 260 bps. Financial close was reached on June 6, 2011. ICBC (Asia) contributed $91 million USD to this loan. Record ID#93468 captures ICBC (Asia)'s contribution. In addition to ICBC (Asia), the following banks contributed the following amounts to the syndicate: Australia and New Zealand Banking Group (ANZ) ($273 million USD), National Australia Bank Limited (NAB) ($273 million USD), HSBC ($227.5 million USD), ING Bank N.V. ($227.5 million USD), WestLB AG ($227.5 million USD), Crédit Agricole Corporate and Investment Bank (CACIB) ($227.5 million USD), Intesa Sanpaolo S.p.A. ($217.6 million USD), Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) ($204.7 million USD), Lloyds Bank ($182 million USD), Société Générale S.A. (SocGen) ($182 million USD), DBS Bank ($136.5 million USD), Banco Santander, S.A. ($136.5 million USD), Bank of Ireland ($91 million USD), and Investec ($68 million USD). ANZ, NAB, WestLB, and CACIB served as mandated lead arrangers. Due to a delay in the completion of the project to 2017, refinancing the original debt upon the 2018 maturity was not feasible for the sponsors. Instead, the sponsors decided to seek to amend and extend the existing debt until refinancing could be achieved. On April 24, 2018, a syndicate of 28 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into an amendment agreement with the borrower to extend the maturity period of the loan by two years and one months (a new maturity period of 9.083 years). Some of the original lenders did not participate in the extension, and new lenders participated. Record ID#93485 captures ICBC's contribution to this extension. In 2020, the same lenders — including ICBC — entered into an amendment agreement with the borrower to extend the loan by one year and nine months (a new maturity of 10.833 years), having a new final maturity of September 2021. Record ID#96446 captures ICBC's contribution to this extension. On July 14, 2021, financial close on a deal in which a syndicate of 18 banks — including the Bank of China (BOC) and ICBC — entered into a $2.2 billion AUD ($1.63997 billion USD) syndicated sustainability-linked loan (SLL) agreement with Celsus Securitisation Pty Limited — whose shareholders were now InfraRed Infrastructure Fund III (30.58% equity stake), AMP Capital (17.26% equity stake), Aberdeen Asset Management (abrdn) (27.21% equity stake), The Infrastructure Fund (15% equity stake), and MM Capital Infrastructure Fund 1 (9.95% equity stake) — for the New Royal Adelaide Hospital PPP 2021 Refinancing Project. This loan carried a maturity period of four years. BOC contributed $75.03 million AUD ($55.93 million USD) and ICBC contributed $130.05 million AUD ($96.94 million USD). Record ID#93486 captures BOC's contribution. Record ID#93487 captures ICBC's contribution. Then, on June 15, 2023, financial close was reached on a deal in which a syndicate of 14 banks — including BOC and ICBC — entered into a $2.124 billion AUD ($1.44597 billion USD) syndicated green loan agreement with Celsus Securitisation Pty Limited — whose shareholders were now Dexus Community Infrastructure Fund (CommIF) (58.69% equity stake), Dexus Healthcare Property Fund (DHPF) (9.95% equity stake), AMP Capital Core Infrastructure Fund (CIF) (4.15% equity stake), abrdn (17.26% equity stake), and MM Capital Infrastructure Fund 1 (9.95% equity fund) — for the New Royal Adelaide Hospital PPP 2023 Refinancing Project. This term loan carried a maturity period of four years, a final maturity date of June 15, 2027, and an interest rate of BBSY plus a margin of 140 bps. This loan was a green and social loan, issued under the principles of the Asia Pacific Loan Market Associations and the Loan Syndications and Trading Association. The proceeds were to be used by the borrower to refinance the existing $2.2 billion AUD syndicated loan from 2021. BOC and ICBC each contributed $155.06 million AUD ($105.56 million USD) to the loan syndicate. Record ID#101580 captures BOC's contribution. Record ID#101581 captures ICBC's contribution.
Staff comments
1. This project is also known as the New Royal Adelaide Hospital PPP Project (NRAH). 2. There is a dedicated website for the Royal Adelaide Hospital: https://www.rah.sa.gov.au/. 3. "Aussie hospital PPP gets A$2.5bn from 15 banks" states the original debt was divided into two facilities: an "almost" five-year construction facility with an interest rate of BBSY plus a 2.6% margin and a two-year term loan that refinances the construction facility with an interest rate of BBSY plus 2.45%. While AidData has evidence elsewhere of those interest rates being present, it has found no evidence that this loan is not a 7-year facility; it is possible that the interest rates were banded, with different rates being activated upon the meeting of certain requirements. 4. IJGlobal's "Australia's Royal Adelaide Hospital PPP", a narrative case study, and IJGlobal's "New Royal Adelaide Hospital PPP", its transaction entry, report slightly different figures for contributions. While the former's figures are larger, AidData has judged that the narrative case study to be of higher value as a source, and has coded this project accordingly. 5. AidData is calculating the loan's interest rate (7.745%) as the sum of the average of the two reported margin rates (252.5bps/2.525%, derived from 245bps and 260bps) and the contemporary 6-month BBSY rate (5.22%). BBSY rate information was taken from this source: https://www.dropbox.com/scl/fi/vf4hmk3ca1b11nm8tyjkg/BBSW-and-BBSY-Daily-Reference-Rates-2000-to-2023.xlsx.xlsx?cloud_editor=gsheet&dl=0&rlkey=ozq8sa1itiq8kmpnqhdb6jndh#gid=544580120