MegaProject 1034: Victorian Desalination PPP secures refinancing debt
- Nippon Life Insurance
- Bank of Tokyo-Mitsubishi (BTMU)
- AMP Capital
- HICL Infrastructure Company Limited (HICL)
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Aquasure has secured refinancing of a big portion of the debt for a the desalination project PPP in Melbourne, Australia. The long-term project finance has been arranged with mainly Japanese banks and insurers.
The total amount of debt refinanced has reached AUD766 million (US$601 million). Nippon Life Insurane Company made a loan of AUD176 million (US$137 million) for the project, being the biggest lender on the deal.
Mitsubishi UFJ Group acted as sole lead arranger, underwriter and bookrunner on the transaction. The loan has a tenor of 15 years.
The project is a AUD3.5 billion capital investment between the Victorian Government and AquaSure, the company contracted to finance, design, construct, operate and maintain the project for 30 years. There are 22 years remaining to the end of the concession.
The scope of the project includes the construction and operation of the desalination plant, the 84-kilometre transfer pipeline to connect the plant to Melbourne’s existing water supplies, delivery of power supply for the project, operations and maintenance, and the purchase of renewable energy credits. The plant was successfully commissioned in December 2012.
As we reported in October last year, AMP Capital reached financial closure on a deal to acquire a 5.2 per cent stake in the Victorian Desalination Project (VDP) from Pacific Partnerships. In March 2014 we also informed that InfraRed-managed HICL Infrastructure Company Limited also acquired a 5.85% equity interest in project.
In 2013, Aquasure refinanced the project with a US$3.46 billion, divided in four tranches.