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Overview

ICBC contributes $5.91 million NZD to the five-year $70 million NZD tranche of a $140 million NZD syndicated loan for the Ahuroa Gas Storage Facility Acquisition Project (Linked to Record ID#99081, #99082, and #99083)

Commitments (Constant USD, 2023)$4,112,696
Commitment Year•2018Country of Activity•New ZealandDirect Recipient Country of Incorporation•New ZealandSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 31, 2018
Start (planned)
Jun 30, 2018
Start (actual)
Oct 1, 2018
End (planned)
Jun 30, 2018
End (actual)
Oct 1, 2018
Last repayment (originally scheduled)
Jul 31, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Bank of New Zealand (BNZ)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • National Australia Bank Limited (NAB)
  • Royal Bank of Canada (RBC)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Westpac Banking Corporation

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Gas Services New Zealand Limited (GSNZ)

Loan description

July 2018 $140 million NZD syndicated loan for the Ahuroa Gas Storage Facility Acquisition Project in New Zealand

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On July 31, 2018, financial close was reached on a deal in which a syndicate of 11 banks — including China Construction Bank Corporation (CCB) and the Industrial and Commercial Bank of China (ICBC) — entered into a $140.00 million NZD ($95.61 million USD) syndicated loan agreement with Gas Services New Zealand Limited (GSNZ) — a special purpose vehicle wholly owned by investors managed by Australia's First Sentier Investors — for the Ahuroa Gas Storage Facility Acquisition Project. This loan was divided into two tranches: a $70.00 million NZD ($47.80 million USD) term loan facility tranche with a maturity period of three years and final maturity date of July 31, 2021 and a $70.00 million NZD term loan facility tranche with a maturity period of five years and final maturity date of July 31, 2023. CCB contributed $9.60 million NZD ($6.56 million USD) and ICBC contributed $5.91 million NZD ($4.04 million USD) to each of the two $70 million NZD tranches. Record ID#99081 captures CCB's contribution to the three-year tranche and Record ID#99082 captures CCB's contribution to the five-year tranche. Record ID#99083 captures ICBC's contribution to the three-year tranche and Record ID#99084 captures ICBC's contribution to the five-year tranche. In addition to the Chinese banks, the following lenders contributed the respective amounts to each tranche: National Australia Bank Limited (NAB) ($5.04 million NZD; $3.44 million USD), MUFG Bank ($12.60 million NZD; $8.60 million USD), Bank of New Zealand (BNZ) ($4.46 million NZD; $3.04 million USD), Westpac Banking Corporation ($3.39 million NZD; $2.32 million USD), Australia and New Zealand Banking Group (ANZ) ($6.78 million NZD; $4.63 million USD), Mizuho Bank ($7.85 million NZD; $5.36 million USD), Société Générale S.A. (SocGen) ($4.26 million NZD; $2.91 million USD), and Royal Bank of Canada (RBC) ($7.95 million NZD) ($5.43 million USD). The proceeds were to be used by the borrower to finance the acquisition of the Ahuroa Gas Storage facility, an underground natural gas storage located in Taranaki, and utilized to store gas for the Stratford Power Station, from Contact Energy. GSNZ would operate the facility as Flex Gas. On December 21, 2017, GSNZ signed an agreement with Contact Energy Limited to purchase the Ahuroa Gas Storage facility for $200 million NZD, with the acquisition expected to be completed by June 30, 2018. The acquisition was completed on October 1, 2018.