ICBC contributes $45 million AUD to a $900 million AUD syndicated loan for the Victorian Desalination 2016 Refinancing Project (Linked to Record ID#96654)

Project narrative

On September 2, 2009, financial close was reached on a deal in which a syndicate of 12 lenders — including Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) — signed a $3.9384 billion AUD ($3.33743 billion USD) syndicated loan agreement with AquaSure Finance Pty Ltd — a special purpose vehicle (SPV) — for the Victorian Desalination Project. The proceeds of this loan were used by the borrower to construct a seawater desalination plant and associated infrastructure along the Bass Coast in Wongthaggii, Victoria. The syndicated loan was divided into two tranches: a $3.64086 billion AUD ($3.08529 billion USD) term loan tranche and a $297.54 million AUD ($252.14 million USD) export credit facility. The $3.64086 billion AUD term loan carried a maturity period of seven years, a maturity date of September 3, 2016, and a variable interest rate that shifted through the life of the loan, with an interest rate of BBSY plus a margin of 350 basis points (bps) from year one to year five, an interest rate of BBSY plus a margin of 375 bps in year six, and an interest rate of BBSY plus a margin of 400 bps in year seven. This loan was secured by (i.e. collateralized) against a fixed and floating charge over the assets of AquaSure Pty Ltd — a SPV and 100% owned subsidiary of AquaSure holdings of which equity is owned by Macquarie Group, Degrémont SA (Suez Environment), Thiess Pty Ltd, UniSuper, and foreign investors Itochu Corporation, HSBC Environmental Infrastructure Fund, Samsung C&T Corporation — as managed by a Security Trustee. ICBC (Asia) contributed $99.18 million AUD ($84.05 million USD) to the $3.64086 billion AUD term loan tranche, as captured by Record ID#96654. On March 4, 2016, financial close was reached on a deal in which a syndicate of 12 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $900.00 million AUD ($663.22 million USD) syndicated term loan agreement with AquaSure Finance Pty Ltd — a special purpose vehicle (SPV) jointly owned by Suez Environnement SAS and Degrémont SA (20.8%); UniSuper (26.0%); Samsung C&T Corp (20.8%); Itochu Corp (13.0%); Macquarie Capital Group (8.3%); InfraRed (5.9)%; and Pacific Partnerships (5.2%) — for the Victorian Desalination 2016 Refinancing Project. This loan carried a maturity period of seven years, a maturity date of March 4, 2023, and a reported interest rate of BBSY plus a margin of 145 bps. The proceeds of this loan were to be used by the borrower to refinance the Victorian Desalination Project; specifically, refinancing a portion of commercial bank debt raised in late 2013 to refinance the original 2009 loan. ICBC contributed $45.00 million AUD ($33.16 million USD) to the loan syndicate, as captured by Record ID#96655. In addition to ICBC, the following banks contributed the respective amounts to the loan syndicate: Commonwealth Bank of Australia (CBA) ($50.00 million AUD; $36.85 million USD), Crédit Agricole Group ($45.00 million AUD), Crédit Industriel et Commercial (CIC) ($65.00 million AUD; $47.90 million USD), Mizuho Financial Group (MHFG) ($110.00 million AUD; $81.06 million USD), National Australia Bank Limited (NAB) ($50.00 million AUD), Sumitomo Mitsui Banking Corporation (SMBC) ($50.00 million AUD), the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($110.00 million AUD), Westpac Banking Corporation ($110.00 million AUD), Sumitomo Mitsui Trust Bank, Limited (SMTB) ($100.00 million AUD; $73.69 million USD), Australia and New Zealand Banking Group (ANZ) ($55.00 million; $40.53 million USD), HSBC Bank ($110.00 million AUD).