Bank of China contributes $165.3 million USD to a $1.72438 billion AUD syndicated loan for the WestConnex M4 Project

Project narrative

On November 23, 2016, financial close was reached on a deal in which a syndicate of six banks entered into a $1,724,381,000 AUD ($1.27957 billion USD) syndicated loan agreement with WCX M4 Finco Pty Ltd — a special purpose vehicle (SPV) responsible for raising external debt finance and wholly owned subsidiary of New South Wales government-owned Sydney Motorway Corporation Pty Limited (SMC) — for the WestConnex M4 Project. Then, on March 29, 2017, the lenders successfully syndicated the loan, bringing on two additional lenders — including the Bank of China (BOC). This syndicated loan was divided three tranches: a $924.38 million AUD ($685.94 million USD) term loan tranche with a maturity period of five years and a maturity date of November 23, 2021; a $400.00 million AUD ($296.82 million USD) term loan tranche with a maturity period of seven years and a maturity date of November 23, 2023; and a $400.00 million AUD revolver tranche with a maturity period of five years and a maturity date of November 23, 2021. WCX M4 Finco on-lent the proceeds of the loan to WCX M4 Asset Trust — a special purpose vehicle (SPV) wholly owned by SMC responsible for the financing, design, and construction of the project — on substantially the same terms as that of the senior debt facility. All post-syndication lenders (eight banks), including BOC, contributed approximately $165.3 million USD to the loan syndicate. In addition to BOC, the following lenders contributed to the loan syndicate: Commonwealth Bank of Australia (CBA), Crédit Agricole Corporate and Investment Bank (CACIB), ING Bank, National Australia Bank Limited (NAB), Westpac Banking Corporation, and Korea Development Bank (KDB). CBA, CACIB, ING, NAB, and Westpac served as mandated lead arrangers, underwriters, and bookrunners. CBA served as agent. Natixis served as a hedging provider providing its pro-rata share of the interest rate swaps (c. 17%). This loan was secured and there was a security trustee. As of June 30, 2017, $189,732,000 AUD of the facility had been drawn down. The proceeds of this loan were to be used by the borrower to support the WestConnex M4 Project, the first stage of the $16.8 billion AUD 33-kilometer long WestConnex motorway in Sydney, New South Wales, being delivered by the Sydney Motorway Corporation. Specifically, the WestConnex M4 Project sought to establish a toll road under a long-term concession (expiring in 2060). It was divided into two substages: the M4 Widening, which sought to widen a 7.5 kilometer section of the existing M4 Motorway from Parramatta to Homebush to four lanes (referred to as the M4 Widening); and M4 East, which sought to construct 6.5 kilometers of roadway, including, twin 5.5-kilometer long tunnels between Homebush and Haberfield via Concord, with room for future connection to the M4-M5 Link at the Wattle Street Interchange. The specific route of the 7.5-kilometer-long four lines in either direction M4 Widening Project began with an upgrade to the existing ramps to the M4 Motorway at Church Street, Parramatta, then proceeded to involve construction of a new viaduct between Church Street, Parramtta, and Wentworth, Granville, a reconfiguration of the traffic lanes on the existing viaduct structure to make it four lanes in either direction, a widening and lengthening of the existing ramps at James Ruse Drive, a widening of the existing motorway carriageway between Wentworth Street, Granville and Duck River, Auburn, the construction of a new bridge/viaduct over Duck River at Auburn, the widening and lengthening of the existing ramps at Silverwater Road, the lengthening of the existing westbound on-ramp at Hill Road, the widening of the existing motorway between Junction Street, Auburn and Homebush Bay Drive, Homebush to allow for four lanes in either direction, and the construction of a new westbound on-ramp loop to the M4 Motorway from Homebush Bay Drive, Homebush, replacing the existing signalized right turn. The widening was an upgrade from three lanes. The specific route of the 6.5-kilometer, three lanes in either direction M4 East Project began with surface road widening from Homebush Bay Drive, Homebush, to Powells Creek, Homebush (about one kilometer) to provide for three lines in either direction, then the construction of a western tunnel portal located at Powerlls Creek, Homebush through to Haberfield, the construction of eastbound on-ramps and westbound off-ramps at Concord into the tunnel, connecting with Parramatta Road via Concord Road and to Concord Road adjacent to M4 endpoint, the construction of westbound on-ramps and eastbound off-ramps connecting the tunnel to Parramatta Road at Ashfield, the construction of eastern tunnel portal surfaces at the City West Link, Haberfield, and the construction of tunnel stubs to facilitate underground connection to the M4-M5 Link Tunnels. Planning consent was granted for the M4 Widening in December 2014. The contract was awarded in December 2014. It was scheduled to open to traffic in the first quarter of 2017. The M4 East contract was awarded in June 2015. Construction was planned to begin in mid-2016 and the M4 East was expected to open to traffic by early 2019. The Government of New South Wales awarded a $3.802 billion AUD design-build contract to a Leighton Contractors (later renamed CPB Contractors), Samsung C&T Corporation and John Holland joint venture and a $497 million AUD design-build contract to a joint venture between Rizzani De Eccher and Leighton Contractors for the M4 Widening. Kapsch TrafficCom Australia won a tolling equipment contract for the project. McMillen Jacobs Associates was responsible for geotechnical and structural design of supports for the tunnels and other services. AECOM provided civil, structural, and building design services to the CPB-Samsung-John Holland JV. Construction on the M4 Widening began in March 2015. The widened M4 opened to traffic in July 2017 and tolling began on August 15, 2017. Construction on the M4 East began in March 2016. The M4 East was opened to traffic on July 13, 2019. Then, in October 2018, a syndicate of 16 lenders — including the Agricultural Bank of China (ABC), BOC, and the Industrial and Commercial Bank of China (ICBC) — entered into a $4 billion AUD ($2,903,830,000 USD) syndicated loan agreement with STP Finco Pty Ltd. — a special purpose vehicle (SPV) — for the WestConnex M4 2018 Refinancing Project and the WestConnex Privatization Refinancing Project. This loan was divided into four tranches, split evenly into $2 billion AUD of three-year debt and $2 billion AUD of five-year debt: a $1.362 billion AUD ($988.75 million USD) term loan tranche with a maturity period of three years and a maturity date of September 27, 2021; a $1.362 billion AUD term loan tranche with a maturity period of five years and a maturity date of September 27, 2023; a $638.00 million AUD ($463.16 million USD) term loan tranche with a maturity period of three years and a maturity date of September 27, 2021; and a $638.00 million AUD term loan tranche with a maturity period of five years and a maturity date of September 27, 2023. It carried an interest rate based on a floating rate plus a margin of 140 basis points (bps). The proceeds of this loan were used to refinance the existing debt accrued for WestConnex M4 Project and the $1.12 billion AUD syndicated bridge facility that partially funded the STP's consortium upfront acquisition payment. ABC contributed $85.13 million AUD ($61.80 million USD), BOC contributed $103.85 million AUD ($75.39 million USD, and ICBC contributed $71.51 million AUD ($51.91 million USD) to the three-year $1.362 billion AUD term loan tranche. Record ID#96864 captures ABC's contribution. Record ID#96865 captures BOC's contribution. Record ID#96866 captures ICBC's contribution. ABC contributed $85.13 million AUD, BOC contributed $103.85 million AUD, and ICBC contributed $71.51 million AUD to the five-year $1.362 billion AUD term loan tranche. Record ID#96867 captures ABC's contribution. Record ID#96868 captures BOC's contribution. Record ID#96869 captures ICBC's contribution. ABC contributed $39.86 million AUD ($28.94 million USD), BOC contributed $48.65 million AUD ($35.32 million USD), and ICBC contributed $33.50 million AUD ($24.32 million USD) to the three-year $638 million AUD term loan tranche. Record ID#96870 captures ABC's contribution. Record ID#96871 captures BOC's contribution. Record ID#96872 captures ICBC's contribution. ABC contributed $39.86 million AUD, BOC contributed $48.65 million AUD, and ICBC contributed $33.50 million AUD to the five-year $638 million AUD term loan tranche. Record ID#96873 captures ABC's contribution. Record ID#96874 captures BOC's contribution. Record ID#96875 captures ICBC's contribution. On December 11, 2020, a syndicate of 19 lenders — including ABC, BOC, the Bank of Communications (BoComm), and ICBC — entered into a $4.250 billion AUD ($3.21281 billion USD) syndicated loan agreement with WestConnex Finance Company Pty Limited — a special purpose vehicle (SPV) and the financing vehicle of the WestConnex Group (WCX) owned by Sydney Motorway Corporation, itself jointly owned by the Government of New South Wales (49% equity stake) and the Sydney Transport Partners join venture (51% equity stake) — for the WestConnex M4 2020 Refinancing Project. This syndicated loan was divided into four tranches: a $1.000 billion AUD ($755.95 million USD) term loan tranche with a maturity period of three years; a $1.200 billion AUD ($907.15 million USD) term loan tranche with a maturity period of five years; a $800.00 million AUD ($604.76 million USD) term loan tranche with a maturity period of seven years, and a $1.250 billion AUD ($944.94 million USD) bridge facility tranche with a maturity period of two years. Financial close was achieved on December 18, 2020. The proceeds of this syndicated loan were to be used by the borrower to refinance $4.0 billion AUD of existing bank debt facilities for the WestConnex M4 Project that were established when the Sydney Transport Partners acquired a 51% stake in WestConnex in 2018 and to help fund its associated transaction costs. ABC, BOC, BoComm, and ICBC contributed $52.43 million AUD ($39.64 million USD) each to the $1 billion AUD term loan tranche. Record ID#96828 captures ABC's contribution. Record ID#96829 captures BOC's contribution. Record ID#96830 captures BoComm's contribution. Record ID#96831 captures ICBC's contribution. ABC, BOC, BoComm, and ICBC contributed $62.92 million AUD ($47.56 million USD) each to the $1.2 billion AUD term loan tranche. Record ID#96832 captures ABC's contribution. Record ID#96833 captures BOC's contribution. Record ID#96834 captures BoComm's contribution. Record ID#96835 captures ICBC's contribution. ABC, BOC, BoComm, and ICBC contributed $41.86 million AUD ($31.65 million USD) each to the $800 million AUD term loan tranche ($35.15 million USD). Record ID#96836 captures ABC's contribution. Record ID#96837 captures BOC's contribution. Record ID#96838 captures BoComm's contribution. Record ID#96839 captures ICBC's contribution. ABC, BOC, BoComm, and ICBC contributed $69.44 million AUD ($52.50 million USD) each to the $1.25 billion AUD bridge facility tranche. Record ID#96840 captures ABC's contribution. Record ID#96841 captures BOC's contribution. Record ID#96842 captures BoComm's contribution. Record ID#96843 captures ICBC's contribution. Then, on August 8, 2022, financial close was reached a deal in which a syndicate of 11 lenders — including ABC and BOC — entered into a $1.7 billion AUD ($1.17897 billion USD) syndicated loan agreement with WestConnex Finance Company Pty Limited — now jointly owned by Transurban (50.0% equity stake), AustralianSuper (20.5% equity stake), Canadian Pension Plan Investment Board (10.5% equity stake), Caisse de dépôt et placement du Québec (10.0% equity stake), and Tawreed Investments (9.0% equity stake) — for the WestConnex M4 2022 Refinancing Project. This syndicated loan was divided into two tranches: a $900.00 million AUD ($624.16 million USD) term loan tranche with a maturity period of four years and a maturity date of August 8, 2026 and a $800.00 million AUD ($554.81 million USD) term loan tranche with a maturity period of seven years and a maturity date of August 8, 2029. The proceeds of this loan were used by the borrower to refinance the WestConnex toll road. ABC and BOC each contributed $60.00 million AUD ($41.61 million USD) to the $900 million AUD term loan tranche. Record ID#96844 captures ABC's contribution. Record ID#96845 captures BOC's contribution. ABC and BOC each contributed $50.00 million AUD ($34.68 million USD) to the $800 million AUD term loan tranche. Record ID#96846 captures ABC's contribution. Record ID#96847 captures BOC's contribution.