sections

Tuesday, 21 February 2017

  • You are here:Home
  • Sectors

ADB ups private sector financing

PFI Issue 594 - February 8, 2017

The Asian Development Bank (ADB) provided US$8.3bn to private-sector projects in 2016, up 15% from the previous year. This included cofinancing facilities and US$2.5bn in direct loans to new projects, according to a statement issued on February 2.

Cricket Valley closes

PFI Issue 594 - February 8, 2017

Special purpose vehicle Cricket Valley Energy Center has closed a US$1.584bn financing backing the construction of the eponymous 1,100MW combined-cycle natural gas project in Dover, New York.

IC Power pulls IPO

PFI Issue 594 - February 8, 2017

IC Power has nixed its potentially US$400m initial public offering on the back of unkind market conditions.

Tadmax to build 1,000MW power plant

PFI Issue 594 - February 8, 2017

Malaysia’s Energy Commission (EC) has recently awarded Tadmax Resources a contract to develop a 1,000MW combined-cycle gas-fired (CCGT) power plant on a non-competitive or direct negotiation basis. Tadmax, a major real estate developer, is now moving into the power sector. The power plant is estimated to cost between M$2.5bn (US$568m) and M$3bn (US$682m).

FC for peat IPP

PFI Issue 594 - February 8, 2017

Financial close has taken place on the US$350m, 80MW peat-fired power plant (see PFI 590), with a distinctly African financing solution.

Adviser due for IPP market study

PFI Issue 594 - February 8, 2017

Zambia’s Energy Regulation Board (ERB) will appoint an international firm in the coming weeks to advise it on attracting private investors for energy generation and a planned move to cost-reflective tariffs.

I Squared eyes capital injection

PFI Issue 594 - February 8, 2017

I Squared Capital through Orazul Energia Partners is looking to land a financing related to its purchase of Duke Energy’s assets in the region.

Kalsel makes first drawdown

PFI Issue 594 - February 8, 2017

Tanjung Power Indonesia (TPI), the special purpose vehicle set up to develop the 200MW coal-fired Kalsel power plant, has made its first drawdown, about two months after the loan documents were signed in November. The project cost is US$545m and the debt amount is US$409m with a US$13m contingency fund.

Muara Laboh loan signed

PFI Issue 594 - February 8, 2017

The 20-year US$440m loan facility for Supreme Energy Muara Laboh (SEML) has been signed, the first among the Indonesian independent power projects (IPPs) lined up this year for financing.

Riau IPP awarded to Ratch/Medco

PFI Issue 594 - February 8, 2017

PLN is understood to have awarded the 250MW Riau gas-fired power plant project to the consortium comprising Ratchaburi Electricity of Thailand (49%) and Indonesia’s Medco Power (51%), which has BTMU as financial adviser.

EDF asset sale this year

PFI Issue 594 - February 8, 2017

Polish state-run utilities Enea, Energa, PGE and a unit of PGNiG are expected to buy the Polish assets of France’s EDF by year-end, the Polish government has said.

State Grid takes over CPFL stake

PFI Issue 594 - February 8, 2017

State Grid Corp of China has taken formal ownership of controlling stakes in Brazilian power utility CPFL Energia, five months after having signed the agreement for the acquisition.

AES lands notes

PFI Issue 594 - February 8, 2017

Power generation company AES Argentina has landed US$300m via the issuance of a 7NC4 bond offering. Credit Suisse, Itau BBA and JP Morgan acted as leads on the 144A/Reg S senior unsecured bonds.

Transmission projects floated

PFI Issue 594 - February 8, 2017

National energy commission CNE, through the Coordinador Eléctrico Nacional, has launched a tender for a series of transmission lines in the country. Interested companies will have from February 22 until April 24 this year to put forward proposals.

Details out on electricity auction

PFI Issue 594 - February 8, 2017

Chile’s government has published the guidelines for a new electricity tender slated for later this year. The tender will auction off 4,200GWh overall.

Greece plans €400m infra fund

PFI Issue 594 - February 8, 2017

The Greek government is planning to launch a €400m infrastructure fund in partnership with the European Investment Bank (EIB) to spur investment in the country.

Odebrecht to leave Peru

PFI Issue 594 - February 8, 2017

Brazilian construction company Odebrecht said that it was willing to sell off its remaining projects and businesses in Peru as it faces a massive graft inquiry and calls from the government to leave the Andean country.

J&K govt plans mega solar parks

PFI Issue 594 - February 8, 2017

The Jammu & Kashmir government has signed a memorandum of understanding with the central government to develop two solar parks with a total capacity of 7,500MW in the mountainous region of Ladakh.

Banks put IPP up for sale

PFI Issue 594 - February 8, 2017

A consortium of lenders led by IDBI has put its 55% stake in a GMR-built gas-fired power project in Andhra Pradesh up for sale.

Java 1 PPA signed at last

PFI Issue 594 - February 8, 2017

State-owned electricity firm Perusahaan Listrik Negara (PLN) has signed a power purchase agreement (PPA) with Jawa Satu Power, a joint venture mandated to develop the Java 1 gas-fired power plant (PLTGU) after a prolonged disagreement.

Calpine out with US$400m TLB refi

PFI Issue 594 - February 8, 2017

Calpine has launched a US$400m Term Loan B to refinance its 7.8% senior secured notes due in 2023. Price talk is 200bp over Libor with no Libor floor and a discount in the 99–99.5 range.

Calon makes another big loss

PFI Issue 594 - February 8, 2017

Calon Energy, the Macquarie-backed company that owns the Baglan Bay, Sutton Bridge and Severn gas-fired power stations, made an operating loss of £77.965m in the year to March 2016 compared with a £101m loss in the 15 months to March 2015.

Az Zour IPO due

PFI Issue 594 - February 8, 2017

The government is tendering the IPO share issue role among local Kuwaiti banks for the Az Zour independent water and power project (IWPP) scheme, the first PPP in the country that has now started operating. Under local law 50% of the shares in the project company, currently held by the government, have to be sold to the public.

Prospective Misfah bidders revealed

PFI Issue 594 - February 8, 2017

The 11 prospective bidders for the 750MW to 850MW gas-fired Misfah independent power project (IPP) have been revealed as Alfanar, EDF International, Enel, Engie, GE, Kepco, Mapna, Marubeni, Mitsui/ACWA, RWE, and Sojitz.

Fadhili gets to FC

PFI Issue 594 - February 8, 2017

Engie has reached financial close on the US$1.2bn Fadhili cogeneration project. The scheme is backed by US$958m of 22.5-year debt, including US$22m of standby facilities.

SWCC keeps advisers busy

PFI Issue 594 - February 8, 2017

Fransi is understood to be negotiating the financial advisory mandate with Saline Water Conversion Corporation (SWCC) on the Rabigh 3 independent water project (IWP) and Jubail 3 independent water and power project (IWPP) schemes. The other bidders were BNP Paribas and HSBC. 

Facility E advisory due

PFI Issue 594 - February 8, 2017

The EY/Chadbourne & Parke/Poyry team is understood to have been awarded the advisory mandate for the Kahramaa Facility E power and water project. The scheme will have a capacity of 2,520MW and produce 130m gallons of water a day and could be bid as one project or separately as a power project and a desalination project.

Bids opened on FEWA coal FA

PFI Issue 594 - February 8, 2017

Advisory bids for the 1,800MW coal-fired scheme being put together by the Federal Electricity & Water Authority (FEWA) have been opened. Deloitte bid Dh6m (US$1.62m) and PwC bid Dh7m (US$1.89m).

Moody’s downgrades Chief Power

PFI Issue 594 - February 8, 2017

Moody’s has downgraded Chief Power Finance’s US$344.8m six-year Term Loan B and US$44m five-year revolving credit to B2 from B1 on the basis of a weaker than expected financial performance for the past two years.

​BlackRock to acquire FREIF

PFI Issue 594 - February 8, 2017

Asset manager BlackRock has agreed to acquire First Reserve Energy Infrastructure Funds (FREIF), the equity infrastructure franchise of First Reserve, a private equity firm exclusively focused on energy. The FREIF team of 37 people will join BlackRock’s infrastructure investment platform. The team, led by Mark Florian, has announced or closed deals for 21 portfolio companies since 2010.The energy infrastructure team manages approximately US$3.7bn in capital across two funds, with investments in North America, Latin America, Europe and South-East Asia. BlackRock’s infrastructure platform will manage about US$14bn in client assets when the transaction closes, which is expected by the end of the second quarter.As part of the BlackRock infrastructure platform, the energy infrastructure team plans to continue its strategy ...

LPI and Endeavour Energy sales confirmed

PFI Issue 594 - February 8, 2017

The new NSW Treasurer Dominic Perrottet has reaffirmed the government’s commitment to the sale of the state’s Land & Property Information (LPI) unit and the poles and wires company Endeavour Energy.

Loy Yang B sale begins

PFI Issue 594 - February 8, 2017

French company Engie has fired the starter’s gun for the A$1bn sale of its Victorian coal-fired power station Loy Yang B. Rothschild has been given the mandate and sent out sale documents to prospective buyers last week.

Morgan Stanley joins Endeavour Energy bidding

PFI Issue 594 - February 8, 2017

Queensland Investment Corp (QIC) has hired Morgan Stanley to help in its bid for NSW poles and wires company Endeavour Energy.

Bujagali

Bujagali under pressure

PFI Issue 594 - February 8, 2017

A proposed tariff cut may force a restructuring at one of Africa’s first hydro deals. The solution in Uganda has implications for the whole continent. By Colin Leopold.

Mauricio Macri

Structures emerge for RenovAr

PFI Issue 594 - February 8, 2017

RenovAr contracts have been awarded and some have been signed. The task of financing the projects is now taking shape. By Nic Stone

NextEnergy blends at 3.32%

PFI Issue 594 - February 8, 2017

NextEnergy Solar Fund has signed its new long-term £150m debt facility, which has fixed-rate and inflation-linked tranches, at a blended cost including fees of 3.32%.

Advisers appointed on renewables

PFI Issue 594 - February 8, 2017

The Ministry of Energy, Industry & Mineral Resources (MEINR) has selected SMBC, DLA Piper and Fichtner as the advisers on its first phase of renewable projects.

Egypt

Powering the Pharaohs – Infinity 50 leads FiT 1

PFI Issue 594 - February 8, 2017

Infinity 50 – a 50MW Solar PV project under Egypt’s FiT Round 1 – has secured debt from BayernLB under Hermes cover and Arab African International Bank. By Amit Singh, senior associate, and Bibhu Prasad Das, associate, Synergy Consulting Inc.

​LIPA signs Deepwater wind contract

PFI Issue 594 - February 8, 2017

The Long Island Power Authority (LIPA) has signed a 20-year contract with Deepwater Wind for New York’s first offshore wind farm after a unanimous affirmative vote. The project is expected to cost US$740m.

Tsetsii wind farm almost completed

PFI Issue 594 - February 8, 2017

The US$122m Tsetsii wind farm that is being developed by Clean Energy Asia and Japan’s SB Energy is expected to be commissioned by April.

Dong ups holding in wind farm

PFI Issue 594 - February 8, 2017

Danish company Dong Energy has signed an agreement to acquire a 35% ownership interest in Taiwanese offshore wind project Formosa I from local developer Swancor Renewable. Completion of the transaction is subject to a number of conditions precedent, including approval from the EU and from the Investment Commission under Taiwan’s Ministry of Economic Affairs.

DP Energy appoints

PFI Issue 594 - February 8, 2017

Renewable energy developer DP Energy has appointed a new chief legal officer (CLO), Marie Mackenzie, and three advisers to its board. The Ireland-based group is planning a 374MW energy park near Port Augusta in South Australia involving both wind and solar.

Govt budget provides renewables boost

PFI Issue 594 - February 8, 2017

The Indian government tabled its budget on February 1 and announced a new boost to increasing the country’s use of renewable energy. The government aims to use new solar power projects at around 7,000 railway stations in the medium term. 

AfDB backs country’s first biomass

PFI Issue 594 - February 8, 2017

The African Development Bank (AfDB) has signed US$1m grant to local firm Earth Energy Ltd to help develop the country’s first biomass project, a 20MW baseload plant in the north of the country. The US$70m project will take 18 months to develop, said Earth Energy.

Tender on hold for two geothermals

PFI Issue 594 - February 8, 2017

Indonesia’s Ministry of Energy & Mineral Resources (MEMR) has put on hold the tender process for two geothermal power projects, Graho Nyabu in Jambi and Gunung Hamiding in North Maluku.

Scatec reveals solar lenders

PFI Issue 594 - February 8, 2017

Developer Scatec Solar has named three lenders for its 100MW (DC) Nova Scotia solar PV in Jigawa State.

Ireland considers biomass incentive

PFI Issue 594 - February 8, 2017

A consultation has been launched for an Irish renewable heat incentive (RHI) for large industrial and commercial users, weeks after an RHI scheme in Northern Ireland boiled over into a political scandal and resignations. 

Star Energy loan rolls out

PFI Issue 594 - February 8, 2017

Credit Suisse, financial adviser, DBS Bank and Maybank, have started selling down a fully underwritten US$660m dual-tranche loan facility for Star Energy Group, a key member of the consortium that is acquiring the geothermal energy assets of Chevron Corp in Indonesia.

Aboitz pulls out of geothermal project

PFI Issue 594 - February 8, 2017

Aboitiz Power Corp has withdrawn from an Indonesian 110MW geothermal power project in in Ijen, East Java to focus on other projects.

Big solar winners start market soundings

PFI Issue 594 - February 8, 2017

The winning bidders under Package 3 of the large-scale solar PV plants of Malaysia’s Energy Commission have started approaching domestic and international banks for financing options such as sukuk issues and loans.

IPP transaction advisers sought

PFI Issue 594 - February 8, 2017

Transaction advisers are being sought by the Development Bank of South Africa (DBSA) for the development, implementation and monitoring of independent power project (IPP) procurement across baseload power, gas-to-power and renewable energy.

Meeting on Eskom row due

PFI Issue 594 - February 8, 2017

A meeting to “answer” the current stand-off between state utility Eskom and 37 renewables independent power producers (IPPs) over its delayed signing of power purchase agreements (PPA) should take place by mid-February, Public Enterprises Minister Lynne Brown has said at an Eskom briefing.

First power financing signed

PFI Issue 594 - February 8, 2017

A US$200m financing package has been announced for the 404MW Vorotan Hydropower Cascade project, the first major international debt financing package in Armenia’s power sector.

Wirsol refis another

PFI Issue 594 - February 8, 2017

Wirsol Energy, part of Germany-based Wircon, has raised a £46m 18-year loan with Bayerische Landesbank to back 61MW of solar projects. Statkraft has provided the power purchase agreement (PPA) for the projects. The deal is similar to a refinancing from last summer that was put in place by the same parties (PFI issue 580).

Bids in for first solar IPP

PFI Issue 594 - February 8, 2017

Around five bids were submitted on Monday for the country’s first solar IPP, the 100MW Metehara project, from a list of more than 20 prequalified bidders. Most of the bids had conditions attached, according to a person with knowledge of the process.

Two mega hybrid IPPs launched

PFI Issue 594 - February 8, 2017

Daoukro Energies, a subsidiary of the Seres Synergies Holding SA consortium with Italian partner Energia Solare, is developing 700MW of hybrid power generation through solar PV and biomass in Daoukro, in the centre-east of the country.

Eleqtra agrees hydro

PFI Issue 594 - February 8, 2017

The government has signed a memorandum of understanding with Eleqtra for the Kokumbo hydropower project on the River Bandama, according to reports last month.

FERC clarifies storage amid Commissioner shakeup

PFI Issue 594 - February 8, 2017

The Federal Energy Regulatory Commission (FERC) has issued a policy statement to provide guidance on the ability of electric storage resources to recover costs through both cost-based and market-based rates.

Atlantis floats

PFI Issue 594 - February 8, 2017

Marine renewable project developer Atlantis Resources and Ideol, a leader in floating offshore wind technology, have entered into a strategic agreement aiming at developing a 1.5GW pipeline of floating offshore wind projects in the UK.

​Legal & General into first solar deal

PFI Issue 594 - February 8, 2017

Legal & General has entered into a US$65.8m solar debt transaction with Ahana Operations, the renewable subsidiary of ATN International, to refinance a portfolio of 59 solar panel installations, representing its first deal in US solar.

Statkraft appoints KPMG

PFI Issue 594 - February 8, 2017

Statkraft has appointed KPMG to advise on the sale of its stakes in two North Sea offshore wind farm assets – Sheringham Shoal and Dudgeon. The sale is not due to start until later this year when construction on the Dudgeon asset has been completed.

BayWa sells 100MW

PFI Issue 594 - February 8, 2017

German renewables developer BayWa has sold three solar schemes totalling 100MW to Allianz Renewable Energy Fund II (AREF II). The three projects were initially financed by Bayerische Landesbank.

Al Abadliyah ISCC back again

PFI Issue 594 - February 8, 2017

The bid date for the Al Abdaliyah integrated solar combined-cycle (ISCC) project has been put back again, from February 5 to April 2.

SUSI funds first Spanish public lights

PFI Issue 594 - February 8, 2017

Swiss investor SUSI Partners has closed its first energy efficiency deal in Spain, funding a public lighting project in the municipality of Mejorada del Campo near Madrid for an undisclosed amount.

Inox to sell wind farms

PFI Issue 594 - February 8, 2017

Independent power producer Inox, which has around 300MW of installed wind energy capacity, is in talks with Leap Green Energy to sell its renewable energy business.

SECI extends Bhadla solar bids

PFI Issue 594 - February 8, 2017

0505

Mytrah to build 2,000MW in AP

PFI Issue 594 - February 8, 2017

Mytrah Energy is developing up to 2,000MW of renewable power projects in the state of Andhra Pradesh. It has recently signed a number of memoranda of understanding with the state for the development of renewable schemes estimated to cost Rs130bn (US$1.94bn). 

Dong considers Borssele stake sale

PFI Issue 594 - February 8, 2017

Dong Energy is considering selling a stake in the Borssele I & II offshore wind farm projects and could launch the deal by the summer, according to people looking at the deal.

EOS buys Telmo renewables

PFI Issue 594 - February 8, 2017

EOS Investment Management has bought a 40MW portfolio of renewable power plants from Telmo Group for €140m. EOS financed the deal using only equity, without raising external debt.

Wind farm gets refi

PFI Issue 594 - February 8, 2017

Developers Bow Power and Sowitec have refinanced the debt backing the 52.8MW Vientos de Pastorale wind project. The refinancing is for US$100m and Credit Agricole and CaixaBank took tickets while the developers committed US$45m in equity, with Sowitec retaining a 10% share.

Offshore wind tender launched

PFI Issue 594 - February 8, 2017

Germany’s Federal Network Agency has launched its first tender for offshore wind farms, tendering 1.55GW of capacity in the North Sea and Baltic Sea with a maximum bid price of €120/MWh.

MUFG and Allianz commit tax equity

PFI Issue 594 - February 8, 2017

MUFG and Allianz have committed tax equity to EDF Renewable Energy’s 225MW Great Western wind project in Oklahoma. Under the terms of the deal, units of Allianz and MUFG will acquire Class A non-managing interests in the Great Western wind project for an amount in excess of US$10m. It is Allianz’s fourth tax equity deal in the US.

Silverton wind farm reaches FC

PFI Issue 594 - February 8, 2017

AGL’s Powering Australian Renewables Fund (PARF) has reached financial close on the A$300m debt funding required to construct the 200MW Silverton wind farm in NSW. PARF recently acquired the right to develop the wind farm in a A$36m deal with AGL. PARF is owned by AGL (20%), QIC (40%) and The Future Fund (40%).

Morrison signs Bald Hills wind farm deal

PFI Issue 594 - February 8, 2017

NZ infrastructure fund Morrison & Co has signed a deal with Japanese company Mitsui to buy the 107MW Bald Hills wind farm in Victoria. Financial adviser PwC is handling the sale.

Blair Athol solar project ready to go

PFI Issue 594 - February 8, 2017

TerraCom, the mining company that recently bought the Blair Athol coal mine in Queensland, is set to ask for EoIs from solar developers to fund and run a proposed 60MW solar project.

Consortium to target large scale solar projects

PFI Issue 594 - February 8, 2017

Broadspectrum, formerly Transfield, and MPower Projects have announced the formation of a new consortium to target large-scale solar projects in Australia.

CEFC to fund solar plants

PFI Issue 594 - February 8, 2017

Four large-scale solar plants in regional NSW and one in Queensland have been approved by the Clean Energy Finance Corporation for debt and equity funding.

CEFC invests in renewable energy fund

PFI Issue 594 - February 8, 2017

The Clean Energy Finance Corporation (CEFC) is looking to attract mid-tier and large institutional investors to support the next wave of renewable energy projects, with a A$75m cornerstone commitment to a new specialist renewable energy fund managed by Palisade Investment Partners.

Equis invests in renewables

PFI Issue 594 - February 8, 2017

Asia’s largest renewable energy investor, Equis, is ploughing US$400m into two solar projects in Australia. The more advanced of the local investments involves a 100MW solar project near Tailem Bend, about 60km south-east of Adelaide, where construction is about to start. It will be built next to a 28.8MW diesel-fired power station.

FRV secures PPA for Lilyvale solar

PFI Issue 594 - February 8, 2017

Spanish company FRV has signed a power purchase agreement (PPA) with Ergon Energy, the Queensland government-owned electricity retailer, for 100% of the output from its proposed 100MW Lilyvale Solar Farm project.

Aquila Capital opens Oslo office

PFI Issue 594 - February 8, 2017

German investor Aquila Capital has opened an office in Oslo as it seeks to expand in the Norwegian renewables market.

EIB and DKB partner for renewables

PFI Issue 594 - February 8, 2017

The European Investment Bank (EIB) and Germany’s Deutsche Kreditbank (DKB) have signed a €250m framework agreement to finance renewable and infrastructure projects.

Inspired Evolution eyes second fund close

PFI Issue 594 - February 8, 2017

South African energy investor Inspired Evolution has raised US$90m for its US$250m Evolution II fund and sold interests in four renewable energy assets.

Cement firm plans wind farm

PFI Issue 594 - February 8, 2017

Local firm Mombasa Cement is planning to develop a 36MW wind farm in Kilifi and will sell part of the electricity generated to state utility Kenya Power, according to Kenyan press reports

Nordergründe commissioning delayed

PFI Issue 594 - February 8, 2017

The commissioning of WPD’s 111MW Nordergründe near-shore wind farm has been delayed by a few months after BVT, the contractor in charge of the substation, went bankrupt.

EIB approves new loans

PFI Issue 594 - February 8, 2017

The European Investment Bank’s board has approved €7.8bn in new funding, including a number of loans to energy and infrastructure projects.

Commerz Real buys Brandenburg wind

PFI Issue 594 - February 8, 2017

Commerzbank’s investment unit Commerz Real has closed a €105m acquisition of two wind farms in Brandenburg from Saxony-based developer UKA Umweltgerechte Kraftanlagen.

IIC backs hydro project

PFI Issue 594 - February 8, 2017

Hidronormandia has penned a US$78m financing package led by the Inter-American Investment Corporation (IIC) backing a 49.6MW a run-of-the-river hydropower plant and transmission line on the Upano River in the city of Macas.

IFC funds for clean energy

PFI Issue 594 - February 8, 2017

The International Finance Corporation (IFC) has provided US$92.5m in long-term financing to local lenders in Latin America to boost access for small and medium-sized enterprises.

Spanish group buys wind projects

PFI Issue 594 - February 8, 2017

ACS’ renewable energy subsidiary Saeta Yield has agreed to purchase a pair of operational wind farms in the Maldonado department with a combined capacity of 95MW.

Scatec and Kroma seek solar financing

PFI Issue 594 - February 8, 2017

Oslo-based solar developer Scatec Solar and local partner Kroma Energia are looking for financing from local and international development banks backing a 150MW cluster of photovoltaic plants in Ceara state.

Prime Energia lands diesel approval

PFI Issue 594 - February 8, 2017

Prime Energia has won approval for the 50MW San Javier back-up diesel-fired power project in the central-southern Maule region VII. The project will require investment of US$30m and will connect to the SIC grid.

South Korea

South Korea gets smart with roads

PFI Issue 594 - February 8, 2017

South Korea is planning to invest in a network of smart roads. But first it has to deal with minimum revenue guarantees. By John Arbouw.

ADB ups private sector financing

PFI Issue 594 - February 8, 2017

The Asian Development Bank (ADB) provided US$8.3bn to private-sector projects in 2016, up 15% from the previous year. This included cofinancing facilities and US$2.5bn in direct loans to new projects, according to a statement issued on February 2.

South Korean team wins Çanakkale bridge

PFI Issue 594 - February 8, 2017

The South Korean-led consortium of Daelim, SK Engineering, Limak and Yapı Merkezi won the auction for the Çanakkale 1915 bridge PPP held on January 26.

Qube reaches Moorebank Intermodal Terminal deal

PFI Issue 594 - February 8, 2017

Qube Holdings and the Australian government have reached agreement on a deal that will see the A$2bn infrastructure development of the Moorebank Intermodal Terminal Precinct in Sydney’s south-west.

A8

A8 – First for EIB senior debt enhancement

PFI Issue 594 - February 8, 2017

An innovative mix of privately placed bonds, senior loan financing and EIB senior debt credit enhancement came together in the deal to refinance the A8 motorway. By Thanos Babanikas, managing director, Infrastructure & Power Project Finance, UniCredit; Lars Warrink, vice-president, Project Finance, Hochtief; Klaus Kathmann, Head of Structured Finance, Strabag; and Florian Degenhardt, partner, White & Case LLP.

SMBC pulls out of Magdalena

PFI Issue 594 - February 8, 2017

Japanese lender SMBC has pulled out of its commitment to provide US$250m to the Navelena consortium in charge of the Magdalena River navigability project.

​ACS team wins Highway 427

PFI Issue 594 - February 8, 2017

Infrastructure Ontario and the province’s Ministry of Transportation have selected the Link 427 consortium as the preferred proponent to design, finance, build and maintain the expansion of Highway 427 north of Toronto.

​Premier denies Toronto tolling

PFI Issue 594 - February 8, 2017

Ontario Premier Kathleen Wynne has denied the City of Toronto’s request to toll the Gardiner Expressway and Don Valley Parkway, leaving the fate of both projects uncertain.

​LA Metro advancing four proposals

PFI Issue 594 - February 8, 2017

The Los Angeles County Metropolitan Transportation Authority (Metro) is moving forward on four projects submitted as unsolicited proposals. Two of the proposals are for the West Santa Ana Branch Transit Corridor and two are for the Sepulveda Pass Transit Corridor.

​Allianz funds Pocahontas with bonds

PFI Issue 594 - February 8, 2017

Allianz has closed its investment of US$300m in the 89-year Pocahontas Parkway concession backing the eight-mile toll road in Virginia. The financing consisted of two bullet tranches of unlisted bonds with an up to 35-year term that were privately placed with US and European investors through AllianzGI’s infrastructure debt platform.

​Shortlist of Trump projects emerges

PFI Issue 594 - February 8, 2017

A shortlist of 50 Trump administration priority infrastructure projects has emerged and includes many projects known to be utilising a P3 structure or private funding that is likely to involve a non-recourse component. The Purple Line light rail and Gordie Howe bridge made the list, as did the DC Union Station expansion and rehabilitation and I-70 and I-25 improvements in Colorado.

​Louisiana issues RFI on I-10

PFI Issue 594 - February 8, 2017

The Louisiana Department of Transportation & Development has issued a request for information (RFI) on a project to fast-track major improvements on Interstate 10 in the Baton Rouge area. I-10 Capital Corridor Improvements includes the widening of I-10 from the Mississippi River Bridge to the I-10/I-12 split, work on the Pecue Interchange and widening I-10 between La. Hwy. 415 and La. 1.

WestConnex toll road sale gears up

PFI Issue 594 - February 8, 2017

Lenders and sponsors are preparing to form consortia to bid for the 50% sale of the NSW government-owned A$17bn WestConnex toll road project in Sydney.

EIB approves new loans

PFI Issue 594 - February 8, 2017

The European Investment Bank’s board has approved €7.8bn in new funding, including a number of loans to energy and infrastructure projects.

Greece plans €400m infra fund

PFI Issue 594 - February 8, 2017

The Greek government is planning to launch a €400m infrastructure fund in partnership with the European Investment Bank (EIB) to spur investment in the country.

New Orleans out for rail P3

PFI Issue 594 - February 8, 2017

The City of New Orleans has issued a request for qualifications (RFQ) seeking a long-term concession for the New Orleans Public Belt Railroad (NOPB).

Award for Ruta Caribe 2

PFI Issue 594 - February 8, 2017

Agencia Nacional de Infraestructura (ANI) has awarded Grupo KMA Construcciones the contract for the Ruta Caribe 2 public-private partnership highway project. The works have an estimated cost of about Ps1.44tn (US$491m).

IDB backs airports

PFI Issue 594 - February 8, 2017

The Inter-American Development Bank (IDB) will provide a US$35m loan backing infrastructure improvements at four airports in the Bahamas. The loan has a tenor of 25 years, with a 5.5-year grace period, and is pegged to Libor.

ProInversion outlines PPP programme

PFI Issue 594 - February 8, 2017

Peru plans to award the rights to develop the Michiquillay copper deposit in a public tender this year, one of 16 public-private partnership projects worth US$4bn that it intends to auction in 2017, the head of the state bidding agency said recently.

IFC and locals into 4G financing

PFI Issue 594 - February 8, 2017

The International Finance Corporation (IFC) and local banks are set to finance the Santana to Neiva 4G public-private partnership highway project.

Odebrecht to leave Peru

PFI Issue 594 - February 8, 2017

Brazilian construction company Odebrecht said that it was willing to sell off its remaining projects and businesses in Peru as it faces a massive graft inquiry and calls from the government to leave the Andean country.

Drawdown nears on 4G loan

PFI Issue 594 - February 8, 2017

The Sociedad Futura Autovía Neiva-Girardot consortium is set to starting drawing down some of the financing it landed backing the Neiva-Girardot 4G private initiative.

ANI head wants Odebrecht out

PFI Issue 594 - February 8, 2017

The head of Agencia Nacional de Infraestructura (ANI) Luis Andrade has told reporters that they are “working toward the definitive exit of Odebrecht from Colombia”.

FDN approves 4G financings

PFI Issue 594 - February 8, 2017

Concessionaire Estructura Plural Vias del Nus (Vinus) has seen its request for a Ps300bn (US$102.1m) senior debt financing backing its private 4G initiative Magdalena 1 approved by state-run lender Financiera de Desarrollo Nacional (FDN).

Comments sought for toll roads

PFI Issue 594 - February 8, 2017

National land transport agency ANTT has launched a public consultation for potentially R$7.9bn (US$2.53bn) in toll roads. The consultation period will be open until March 17 and seeks contributions to improve the draft contract and tender documents for the BR-101/290/386/448 roadways.

ADB to support PPP in transport

PFI Issue 594 - February 8, 2017

The Asian Development Bank (ADB) is advising the government of Myanmar on the development of its transport services through public-private partnerships (PPP). It signed an advisory services agreement in its Manila headquarters on February 1.

Govt relaunches regional airport PPPs

PFI Issue 594 - February 8, 2017

The Philippine Department of Transportation and the PPP Center have released the much awaited invitation to develop the regional airports under the PPP programme. Prospective investors have been invited to send in documents for pre-qualification to bid for five airport PPP projects – Bacolod-Silay, Davao, Iloilo, Laguindingan and Bohol (Panglao) airports.

Ayala plans to bid for airports

PFI Issue 594 - February 8, 2017

Ayala Infrastructure intends to bid for major infrastructure projects in the country, its president and chief executive officer Jose Rene Almendras told the media.

Moto refi due

PFI Issue 594 - February 8, 2017

Motorway services company Moto is set to launch its refinancing shortly. The company said in the autumn it would refinance but would look at a sale and leaseback structure as part of the deal, which now appears to have been dropped.

Dover docks upgraded funded

PFI Issue 594 - February 8, 2017

The Port of Dover has raised £200m in debt to fund its upgrade project. The Dover Western Docks Revival project will create a purpose-built cargo and logistics facility at the port, which currently handles up to £119bn of UK trade each year.

Roads authority appoints PPP adviser

PFI Issue 594 - February 8, 2017

Law firm Baker & McKenzie has been selected to advise Poland’s General Directorate for National Roads &  Motorways (GDDKIA) on the development of road PPPs in the country.

Bidding delayed on first road PPP

PFI Issue 594 - February 8, 2017

The deadline for requests for qualification (RFQs) on the US$550m Nairobi–Nakuru–Mau Summit Road PPP has been extended until February 17.

Chinese wins Frankfurt-Hahn Airport

PFI Issue 594 - February 8, 2017

The state of Rhineland-Palatinate has selected a consortium of China’s HNA Group and Germany’s ADC as the preferred bidder to buy Frankfurt-Hahn Airport.

Fourth extension for Sofia Airport sale

PFI Issue 594 - February 8, 2017

The Bulgarian government has postponed until May 19 the deadline for submission of bids for a concession to operate Sofia airport.

Abertis signs Sanef investment

PFI Issue 594 - February 8, 2017

Abertis has signed an agreement with the French government to invest €147m in road upgrade projects in return for tariff increases on its motorway network.

BMVI picks A49 adviser and seeks more

PFI Issue 594 - February 8, 2017

Germany’s Federal Ministry of Transport & Digital Infrastructure (BMVI) has hired Greenberg Traurig as legal adviser for the A49 motorway PPP project and is looking for more advisers to work on the next generation of highway PPPs.

NGE wins road PPP

PFI Issue 594 - February 8, 2017

The department of Cantal in south-central France has awarded a PPP project to NGE to build the Saint-Flour north bypass. The project requires a €28.15m investment and is based on a 20-year concession.

A3 bidders consider consortia

PFI Issue 594 - February 8, 2017

The A3 motorway PPP in Bavaria is attracting the interest of the main construction companies active in the German market ahead of the prequalification phase.

Three groups eye A10 bids

PFI Issue 594 - February 8, 2017

Three companies are looking to file intermediate bids for the A10/A24 motorway PPP in Brandenburg, vying for one of only two positions open for the final phase of the tender.

A16 bidders prequalified

PFI Issue 594 - February 8, 2017

All five bidders for the A16 motorway PPP near Rotterdam have prequalified to take part in the project’s €1bn tender launched in December.

Regional airports financing pushed back

PFI Issue 594 - February 8, 2017

The closing of the acquisition of 14 regional Greek airports by Fraport and Copelouzos has been delayed by a few weeks.

AIIM takes port operator stake

PFI Issue 594 - February 8, 2017

Equity investor African Infrastructure Investment Managers (AIIM) has taken a 60% interest in DSM Corridor Group Tanzania (DCG), a specialist dry bulk terminal operator in the port of Dar es Salaam.

Yilport out to banks shortly

PFI Issue 594 - February 8, 2017

Banks will be approached in the next few weeks for Turkish firm Yilport Holdings’ debt financing, which follows its €300m acquisition of Portuguese terminal operator Tertir in February last year. 

HH Ferries refinances debt

PFI Issue 594 - February 8, 2017

First State Investments has closed a SKr2.45bn (€260m) refinancing of the debt backing its acquisition of Danish-Swedish ferry operator HH Ferries.

Northleaf Capital closes fund

PFI Issue 594 - February 8, 2017

Northleaf Capital Partners has held the final closing for its second OECD-focused pooled infrastructure fund, Northleaf Infrastructure Capital Partners II, at its US$950m hard cap.

Brazil plans to change port laws

PFI Issue 594 - February 8, 2017

Brazil’s government is looking to approve a change to laws that will make it easier for private port owners that own their land to expand their terminals without governmental approval. 

ADB ups private sector financing

PFI Issue 594 - February 8, 2017

The Asian Development Bank (ADB) provided US$8.3bn to private-sector projects in 2016, up 15% from the previous year. This included cofinancing facilities and US$2.5bn in direct loans to new projects, according to a statement issued on February 2.

Gas Natural considers sale

PFI Issue 594 - February 8, 2017

Spain’s Gas Natural Fenosa is considering selling its Italian gas distribution assets and has hired Rothschild to advise on the deal.

Govt sacks top Pertamina bosses

PFI Issue 594 - February 8, 2017

Indonesia’s State-Owned Enterprises Ministry dismissed on Friday the top leaders of energy company Pertamina, citing leadership issues and lack of teamwork.

Nord Stream 1 bond back on

PFI Issue 594 - February 8, 2017

The bond refinancing for the Nord Stream 1 gas pipeline is back on, with the banks in the syndicate asked for a waiver to allow it to go ahead. BNP Paribas and UniCredit were appointed in 2013 to arrange the bond issue and are still believed to be on the deal.

Oil

Playtime for PE in O&G

PFI Issue 594 - February 8, 2017

The collapse in the oil price in summer 2014 was supposed to lead to a private equity boom in the sector. Distressed players and distressed assets would come on the market at ultra-low prices and the bargains would be snapped up by those clever PE folk. That did not quite happen then but there are signs it is happening now.

Greece plans €400m infra fund

PFI Issue 594 - February 8, 2017

The Greek government is planning to launch a €400m infrastructure fund in partnership with the European Investment Bank (EIB) to spur investment in the country.

Limetree Bay plans terminal loan

PFI Issue 594 - February 8, 2017

Limetree Bay Terminals, a joint venture between ArcLight and Freepoint Commodities and the operator of an oil storage terminal in the Virgin Islands, is preparing a US$440m seven-year term loan to finance a US$290m distribution to the sponsor and a US$120m liquidity reserve for growth capex projects.

GyM eyes asset sales

PFI Issue 594 - February 8, 2017

Peruvian company Graña y Montero has announced plans to sell up to US$300m in assets following its removal as one of the concessionaires for the Gasoducto Sur Peruano pipeline project.

ProInversion outlines PPP programme

PFI Issue 594 - February 8, 2017

Peru plans to award the rights to develop the Michiquillay copper deposit in a public tender this year, one of 16 public-private partnership projects worth US$4bn that it intends to auction in 2017, the head of the state bidding agency said recently.

DUET and CKI arrange debt

PFI Issue 594 - February 8, 2017

DUET Group and its suitor Cheung Kong Infrastructure have both been arranging new debt recently but approval by Australia’s Foreign Investment Review Board and the recently formed Critical Infrastructure Centre on their  proposed A$7.3bn (US$5.6bn) takeover/merger deal has yet to be given.

AGL looks to sell gas storage

PFI Issue 594 - February 8, 2017

AGL Energy is seeking buyers for the gas storage and exploration assets it inherited as part of the Mosaic Oil takeover in 2010.

Origin Energy calls for pipeline offers

PFI Issue 594 - February 8, 2017

The bidders for Origin Energy’s Darling Downs pipelines will have 10 weeks in which to lodge final offers. The bidders include APA, advised by Morgan Stanley, Jemena advised by UBS, and DUET group.

Aramco eyes petchem in AP

PFI Issue 594 - February 8, 2017

Global oil giant Saudi Aramco may invest in a proposed petrochemical plant in the state of Andhra Pradesh, Minister for Petroleum and Natural Gas Dharmendra Pradhan said at a recent conference conducted by the Confederation of Indian Industry (CII) at Visakhapatnam, the state’s financial centre.

Big RBL for Chrysaor

PFI Issue 594 - February 8, 2017

BNP Paribas, Bank of Montreal, Citigroup, DNB and ING are leading the US$1.5bn reserve-based lending (RBL) loan being put in place by Chrysaor to back its US$3bn acquisition of a portfolio of North Sea assets from Royal Dutch Shell. The deal is now going out to syndication.

Faroe gets new RBL

PFI Issue 594 - February 8, 2017

Oil independent Faroe Petroleum has secured a new US$250m seven year reserve-based lending (RBL) deal with a US$100m accordion feature plus a NKr1bn, US$120m, four-year revolving credit facility, and a further NKr500m on an accordion basis.

EACOP FA RFP due out

PFI Issue 594 - February 8, 2017

Banks are being asked to bid for the financial advisory mandate for the US$4bn 200,000–230,000 barrels a day pipeline from the Lake Albert oil field to Tanzania. Total has 54.9% of the oil development project and the other shareholders are Tullow Oil and CNOOC.

Premier Oil margins up

PFI Issue 594 - February 8, 2017

Premier Oil is paying an extra 150bp on its US$3.9bn of debt as part of its proposed refinancing, plus 100bp in fees. Schuldschein lenders will get an extra 100bp in margin and 50bp in fees.

Delek to buy Ithaca

PFI Issue 594 - February 8, 2017

Israel’s Delek Group has offered to buy North Sea independent Ithaca Energy for US$646m. Delek already holds 20% of Ithaca and has hired UBS to work on possible financing requirements associated with deal. 

March deadline for Redexis bids

PFI Issue 594 - February 8, 2017

Bidders for Goldman Sachs’ Spanish gas distribution network Redexis have until March 22 to submit their final offers. Two main consortia are competing for the asset. One group is made up of First State Investments and CPPIB, while its main rival is a group including China Investment Corporation, Allianz and Borealis.

Final EDP Gas bids due

PFI Issue 594 - February 8, 2017

Final bids for EDP Gás Distribuição, the gas distribution network previously known as Portgas owned by Portuguese utility EDP, are due at the end of the month.

Banten LNG docs being finalised

PFI Issue 594 - February 8, 2017

Banks and sponsors are finalising the loan documents for the estimated 19.5-year US$1bn debt financing for the Banten LNG receiving terminal.

IFFCO keen on Swan LNG stake

PFI Issue 594 - February 8, 2017

Indian Farmers Fertiliser Cooperative (IFFCO), India’s largest fertiliser producer, is the latest company to indicate interest in the LNG project of Swan Energy, which intends to build it at Jafrabad in Gujarat.

Octopus LNG setback

PFI Issue 594 - February 8, 2017

The Chilean Supreme Court has revoked the environmental permit for the Penco Lirquen or Octopus LNG regasification project in the Bio Bio region. The ruling comes after the Asociación Indígina Koñintu Lafken Mapu group requested a stay on the works.

Oman LNG cancels debt deal

PFI Issue 594 - February 8, 2017

Oman LNG has cancelled plans to raise up to US$1bn of project debt to pay its gas supplier, paying the bill directly instead. The project company holds both Oman LNG and Qalhat LNG projects, which have 10.4m tonnes of annual capacity.

​Magnolia gets Indian LNG buyer

PFI Issue 594 - February 8, 2017

LNG Ltd’s Magnolia LNG project has signed a heads of agreement (HOA) with Vessel Gasification Solutions, the developer of a floating LNG import and regasification terminal in Andhra Pradesh, India. The non-binding HOA provides for a 20-year free-on-board (FOB) sale and purchase agreement (SPA) of up to 4m metric tonnes per annum (mtpa).The deal is contingent on conditions including financial close for the India project and credit requirements underpinning LNG purchases within agreed time-frames. The Kakinada-based Krishna terminal is expected to be East Coast India’s first LNG import project to become operational. It will allow for the full utilisation of close to 7,000MW of near-idled power plants.

Toshiba markets Freeport LNG capacity

PFI Issue 594 - February 8, 2017

Toshiba has signed a sales and marketing contract with Jera, a joint venture between Tokyo Electric Power and Chubu Electric Power, to help find buyers for capacity from the Freeport LNG project, according to Japanese press reports. Toshiba is under contract to buy 2.2m tons of LNG from Freeport starting in September 2019 but has lined up buyers for only about half of the LNG it is contractually obligated to purchase beginning in September 2019. Freeport is under construction on Quintana Island in Brazoria County, Texas.