ICBC contributes $75 million AUD to a $600 million AUD syndicated term loan for the WestConnex M4-M5 Link Tunnel Project

Project narrative

On December 18, 2018, financial close was reached on a deal in which a syndicate of six banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $600.00 million AUD ($431.30 million USD) syndicated term loan agreement with WCX M4-M5 Link Finco Pty Limited — an Australia-incorporated special purpose vehicle (SPV) and wholly owned subsidiary of WCX M4-M5 Link Asset Trust, itself owned by Sydney Motorway Corporation — for the WestConnex M4-M5 Link Tunnel Project. WAX M4-M5 Link FinCo Pty Ltd on-lent provided the debt to WCX M4-M5 Link Asset Trust on broadly back-to-back terms. ICBC contributed $75.00 million AUD ($53.91 million USD). In addition to ICBC, the following banks contributed the respective amounts to the loan syndicate: Commonwealth Bank of Australia (CBA) ($100.00 million AUD; $71.88 million USD), Export Development Canada (EDC) ($130.00 million AUD; $93.45 million USD), KEB Hana Bank ($90.00 million AUD; $64.69 million USD), National Australia Bank Limited (NAB) ($75.00 million AUD), and Westpac Banking Corporation ($130.00 million AUD). The proceeds of this loan were to be used by the borrower for the construction of the M4-M5 Link Tunnels in Sydney, New South Wales, tolled road tunnels approximately 7.5 kilometers long and four lanes wide in each direction connecting the New M4 at Haberfield to the M8 at St Peters with additional connections to the Anzac and Iron Cove bridges via the Rozelle Interchange. The M4-M5 Link Tunnels are part of the WestConnex Project, a 33-kilometer long motorway network in Sydney. The M4-M5 Link Tunnels were expected to remove up to 40 minutes from the average peak journey between Parramatta and the Sydney Airport and tens of thousands of vehicles from surrounding streets. On June 12, 2018, a project deed, which set out the terms by which the trustees would fund, design and construct the M4-M5 Link Tunnels and operate, maintain and toll the Motorway, was signed. Originally, design and construction was contracted to a joint venture of Lendlease Engineering Pty Ltd, Bouygues Construction Australia Pty Ltd, and Samsung C&T Corporation. In December 2019, Acciona S.A. acquired the ongoing projects of Lendlease Engineering, including the WestConnex 3A Project. As a result, the joint venture was renamed as Acciona Samsung Bouygues Joint Venture (ASBJV). Jacobs Aurecon Joint Venture (JAJV) was responsible for design and construction phase services for ASBJV. Fredon was responsible for the installation, testing, and commissioning of various electrical systems including 33kV GIS High Voltage Switchboards, DC systems, and optical fiber and communications systems. SICE was also involved in project implementation. Resource Services Group (RSGx) was responsible for design, supply, installation, and commissioning of tunnels' common gravity drainage system, the Low Point Sump (LPS). Arcure was contracted to provide Blatair pedestrian detection sytems around industrial vehicles during construction; UPG was responsible for the installation of the sytems and day-to-day field support. The Penetron Group provided its PENETRON ADMIX for the concrete mix used for the tunnels. The M4-M5 Link Tunnels were scheduled to open in March 2023. The tunnels were officially opened on January 19, 2023.