IJGlobal Magazine - Summer 2021 Issue - 8889f0

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The publication discusses awards for major infrastructure deals in 2020 and provides contact information for BNY Mellon's corporate trust team. It also advertises IJGlobal's services and databases.

BNY Mellon provides a comprehensive suite of corporate trust services including bond trustee, depositary bank, loan administration and collateral agent. They aim to be an independent servicer with technology-enhanced solutions and reporting.

Projects featured include the Mutkalampi Wind Farm in Europe, Thruway Service Stations P3 in North America, Gás Natural Açu in Latin America, and a hybrid portfolio financing in Asia Pacific.

Issue 383 EUROPE

Mutkalampi Wind Farm


Summer 2021
NORTH AMERICA
Thruway Service Stations P3
LATIN AMERICA
Gás Natural Açu
ASIA PACIFIC
Hybrid portfolio financing
MIDDLE EAST & AFRICA
Project Finance & Infrastructure Journal Yanbu-4 IWP

IJGLOBAL AWARDS 2020 WINNERS INSIDE

2020
Awards special
This year’s roll-call of the victorious
for deals closed in 2020
Navigating the
Complexities of
Infrastructure and
Project Finance. PROVIDING CLIENTS WITH CROSS-INDUSTRY
INSIGHT, GLOBAL EXPERTISE AND ROBUST

Together
SERVICE SOLUTIONS:

• Comprehensive suite of services including bond


trustee, depositary bank, loan administration
and collateral agent
• Independent servicer that ensures a
client-centric approach
• Technology-enhanced solutions to perform
waterfall calculations and customized reporting
• Closed deals involving projects in more than
15 countries1

Contact our global Corporate Trust 1


Project finance deals FY 2020
team for more information:

Hector Herrera Rob McIntyre Miguel Barrios


Head of Business Development - Americas Director, Business Development Vice President, Business Development
Corporate Trust Corporate Trust Corporate Trust
1-212-815-4293 1-212-815-7141 1-212-815-7018
[email protected] [email protected] [email protected]

© 2021 The Bank of New York Mellon Corporation. All rights reserved. BNY Mellon is the corporate brand for The Bank of New York Mellon
Corporation. Products and services referred to herein are provided by The Bank of New York Mellon Corporation and its subsidiaries.
Content is provided for informational purposes only and is not intended to provide authoritative financial, legal, regulatory or other
professional advice. For more disclosures, see https://www.bnymellon.com/us/en/disclaimers/business-disclaimers.jsp#corporatetrust
Contents

From the editor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


5 IJGlobal ESG
Awards 2020 IJGlobal ESG Awards 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

IJ Global Awards 2020. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10


The Societe Generale Interview. . . . . . . . . . . . . . . . . . . . . . . . . . 11
The ACWA Power Interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
The Herbert Smith Freehills Interview . . . . . . . . . . . . . . . . . . . . 15
The Quinbrook interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
The DBS Interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
The Fitch Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
31
The White & Case Interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
The SMBC Interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
The Citi Interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2020 The Astris Finance interview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

IJGlobal Awards 2020 – winning companies. . . . . . . . . . . . . . 31


IJGlobal Awards 2020 – winning deals…. . . . . . . . . . . . . . . . . 75
Winning companies
Europe
Mutkalampi Wind Farm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
75
North America
New York Thruway Service Stations P3. . . . . . . . . . . . . . . . . . . 151
Latin America
2020 Gás Natural Açu, Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Asia Pacific
Hybrid portfolio financing, Rajasthan. . . . . . . . . . . . . . . . . . . . . 157
Winning deals Middle East & Africa
Yanbu-4 IWP, Saudi Arabia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Editorial Director Reporter, Funds and M&A Reporter, European Energy M&A Business Development Manager, IJGlobal
Angus Leslie Melville Arran Brown Edin Imsirovic EMEA Euromoney Institutional Investor PLC,
+44 20 7779 8034 +44 20 7779 8441 +44 77 4264 7824 Doug Roberts 8 Bouverie Street
[email protected] [email protected] [email protected] +44 207 779 8546 London, UK EC4Y 8AX
[email protected] +44 20 7779 8870
Editor Reporter, Energy Reporter, Latin American
Ila Patel Elliot Hayes Infrastructure Head of Subscription Sales Directors
+44 20 7779 8629 +1 212 224 3445 George Hames Dan Sedman Leslie Van De Walle (Chair),
[email protected] [email protected] +44 20 7779 8175 +44 20 7779 8675 Andrew Rashbass (CEO), Wendy
[email protected] [email protected] Pallot (CFO), India Gary-Martin,
Assistant Editor Reporter, European Infrastructure Jan Babiak, Colin Day, Imogen Joss,
Anna Cole-Bailey Maya Chavvakula Production Editor Lorna Tilbian, Tim Pennington
+44 20 7779 8040 +44 20 7779 8648 Head of Data
Tim Huxford
[email protected] [email protected] Sophia Radeva No part of this magazine can be reproduced without the
[email protected] written permission of the Publisher. IJGlobal. Registered
in the United Kingdom ISSN 2055-4842.
Asia Pacific Editor Reporter, MEA
IJGlobal is a full service business website and e-news
Dave Doré James Hebert Data Managers Managing Director, Market facility with printed supplements by Euromoney
+852 2912 8052 +44 20 7779 8181 Yavor Guerdjikov Intelligence Institutional Investor PLC.

[email protected] [email protected] Stefaniya Dyulgerova Tim Wakefield Although Euromoney Institutional Investor PLC has made
every effort to ensure the accuracy of this publication,
+44 20 7779 8637 neither it nor any contributor can accept any legal
Funds Editor Reporter, Asia Pacific [email protected] responsibility for consequences that may arise from
Ott Tammik Civi Yap Data Analysts errors or omissions or any opinions or advice given.

+44 0 207 097 3842 +852 2842 6971 Lyudmila Zlateva Divisional CEO This publication is not a substitute for specific
professional advice on deals. ©Euromoney Institutional
[email protected] [email protected] Aleksandar Arsov Jeffrey Davis Investor 2021

www.ijglobal.com Summer 2021


3
From the editor

Then with the losers let it sympathize,


for nothing can seem foul to those that win
If you had cameras set up in the homes of However, I feel your pain. Some beleaguered
IJGlobal journalists – a rather alarming prospect, analyst is badgered into submitting and does a half-
and not one that I’m comfortable with – you arsed job. Even worse, someone from marketing/
would have a bird’s-eye view of what goes on in PR with little knowledge of the deal (not fair as
the judging process for IJGlobal Awards 2020… some are excellent) has it dumped on their desk
and you might be a tad taken aback at how and they make as good a fist of it as they can.
labour-intensive it is. Understandably, they only do as good a job as the
This year we had 1,400 submissions to wade support they receive.
through, entries that range from masterpieces of But there’s good news.
ingenuity to outright stinkers that are dismissed Once this issue of the magazine is firmly in the rear-
with one click of the cursor. view mirror, I’m going to trawl through the awards
I feel, however, that it is about time I clarify methodology and categorisation in a bid to simplify
certain elements of the judging process. the process and make it clearer where we draw the
Company awards (lenders, lawyers, etc.) are line between the IJGlobal Awards (broadly speaking
judged by our team of industry experts for each greenfield and refi) and the IJInvestor Awards (infra
region at five separate Judgment Days while the fund activity and M&A).
Deal category… well, that’s our cross to bear. The
editor from each region marshals editorial forces Is this a magazine which I see before me? Editorial Director
and their own market knowledge to make a call Apologies for butchering Shakespeare, but once Angus Leslie Melville
on this front, based on submissions. again due to this pesky Coronavirus thing you might [email protected]
It is for this reason that at the end of a physical have read about in the news, this issue of IJGlobal
award nights (not happening this year), we might Magazine is in virtual format. But there’s plenty to read.
look a trifle miffed when someone ends up We have a bumper summer issue for your
hollering in our faces for not winning an award. entertainment. One of the first things you will notice
Usually it’s the Company awards (legal/financial/ is that we have created an Editor’s Choice Award.
technical adviser of the year, etc.) that get most This allows the senior journalist for the region that
folk het up, which is particularly galling when we they cover to identify a significant project of their
have no power over those results… the judging choice – whether submitted for the awards or not –
panels make that call. to win.
The argument tends to go: “We’re on all the Too often I have watched awards sail past with
winning deals for the region, but we didn’t win certain deals not being singled out for recognition
overall adviser trophy… how does that work?” for any number of reasons. Sometimes, perhaps
And now you have the answer. The Company they are left on the sideline because those involved
awards – everything from MLA of the Year expect the biggest deals to win. Sometimes,
through to Legal/Financial/Technical Adviser – are everyone involved is too busy working on deals and
voted on by our independent panel of judges, they (understandably) prioritise that. Sometimes
based on the submissions from each of the – not an option I like at all – they don’t know
shortlisted organisations. IJGlobal… perish the thought.
When it comes to the Deals category… well, So here we have created a category for the
we’d have the judges up all night if we had them editorial team to doff the cap at a deal they have
voting on the outcome of those submissions. So watched progress to financial close and they believe
we [IJGlobal] do it ourselves… and that’s how it warrants special mention.
there can occasionally be a discrepancy between
the Company awards and the Deal awards. Read on Macduff
I can draw only one conclusion when an For now, I welcome you to the latest issue of our
organisation is involved in all the winning Deals, quarterly magazine and I will take a moment to
but fails to scoop the Company category award… congratulate all the winners while thanking everyone
your submission sucked by such magnificent who submitted entries for their not inconsiderable
proportions that it failed to impress the judges. efforts.
You clearly failed to get across to the judges what Here’s to you all… and the hope of seeing all your
was apparent for the IJGlobal editorial team to smiling (some glaring) faces at awards nights later
see in the Deals section. this year… or next… or the one after that.

To find out more about IJGlobal and the services we offer, contact us at:
[email protected]

www.ijglobal.com Summer 2021


4
ESG Awards 2020

Celebrating ESG Champions in


Infrastructure & Energy Finance
We are delighted to announce the judging panel for the
inaugural IJGlobal ESG Awards.

The IJGlobal ESG Awards – reflecting developments across


the infrastructure and energy community from 1 April 2020 to
31 March 2021 – will recongise achievements achieved in the
infrastructure and energy sectors over the judging period.

Click here to enter

Entry deadline 8th July 2021

For more information contact:


[email protected]

www.ijglobal.com Summer 2021


5
ESG Awards 2020

ESG Awards Judges

Jemima Atkins  Simon Currie  Edward Dixon 


Allianz Global investor  Energy Estate Aviva Investors Real Assets 

Jemima is well-known to IJGlobal having Simon Currie  As head of ESG at Aviva Investors’ £46
been voted Rising Star in the IJInvestor billion real assets platform – encompassing
Awards 2020, proving to be a popular real estate, infrastructure and private debt –
choice among the judging team based – Ed was a shoo-in for this panel.
among other reasons – for the impressive He works closely with colleagues across
role she has played in AllianzGI on the ESG the platform to lead the firm’s ESG strategy
front. across investment, development and asset
She brings a welcome breath of management, and he’s well qualified to do
(comparative) youth to the judging panel, this given his 18 years’ experience in the
but more than justifies her presence for the industry
key role she has played in driving the ESG Prior to Aviva, he held the role of
agenda within her organisation. sustainability insights director at Landsec,
Jemima is an investment professional joining the business in January 2016 to lead
within the infrastructure debt team at Allianz integration of the company’s sustainability
Global Investors, having joined it in 2018. strategy through a £3.6 billion development
She has made investments in various pipeline as well as ESG strategy, research
European infrastructure assets while – in IJGlobal’s relationship with Simon dates and governance functions.
tandem – creating the inaugural ESG back to when he was a London-based
integration framework for infrastructure debt. partner at (then) Norton Rose – now Norton Edward Dixon 
Interestingly, she is currently working with Rose Fulbright. Back then, he was way
other investment teams within Allianz Global ahead of the curve, driving the renewable
Investors to roll out a standardised approach energy agenda… usually in a suit that
to ESG risk integration across the private was inordinately cooler than any of his
markets platform. colleagues.
We like Simon so much, we even wrote a
Jemima Atkins  profile on him back in September 2019!
A New Zealander by birth, Simon returned
some years ago to the southern hemisphere
with NRF to practise in Sydney. The years
since have seen him switch sides of the
table and launch an interesting business
that seems to be doing rather well.
He is a principal and co-founder of
Energy Estate which they describe as “an
advisory firm and business accelerator,
focused on driving the transformation of the
global energy sector”. His career also includes consulting,
Simon is renowned as a leader and development and project management roles
pioneer in the transformation of the global at UK-based construction company Mace,
energy sector with a focus on integrating multi-national retailer Marks & Spencer
the energy sector alongside other industries. and Simons Group – the well-established,
He is passionate about the digitisation development and design business, based
of the industry, new and emerging in Lincoln and owned by the Hodgkinson
technologies and the potential for creating family.
jobs and economic growth through this Ed is a critical thinker and believes in
approach. the power of organisational behaviour and
Simon is also recognised for his leadership theory as a tool to address
innovative approach to realising the broader sustainability challenges.
environmental, social and economic
outcomes of all the projects he works
on, and encouraging partners and other Silke Goldberg 
industry leaders to do the same. Herbert Smith Freehills
In addition, Jemima is the investment-lead Energy Estate’s track record includes
for implementing the EU Taxonomy and many pioneering projects that have When it comes to power, there are few
SFDR across private debt strategies, as delivered broader benefits through legal experts with the Europe-wide depth
well as being a member of the GRESB community ownership schemes, mandated of experience that Silke brings to the table.
Infrastructure Debt Industry Working Group. local content and local employment, She is even identified as “leading individual”
Prior to Allianz, Jemima worked at Bank of Indigenous engagement and biodiversity in this space by Legal 500 and has the ESG
America Merrill Lynch. outcomes. credentials to match.

www.ijglobal.com Summer 2021


6
ESG Awards 2020

ESG Awards Judges

Silke is admitted to practice in Germany, At Sequoia, he has primary responsibility Vanessa Havard-Williams  
England and France and has nearly 20 for the risk management and compliance
years‘ experience of working in the energy of its infrastructure debt funds. Further, he
sector, 16 of them as a lawyer. oversees all day-to-day operations in the
She has advised clients in relation to the fund.
design of emission trading regimes, energy
transition projects and director liability in Anurag Gupta 
relation to climate change. She has also
advised several governments in relation to
the development of their national climate
legislation.

Silke Goldberg 

Vanessa is recognised internationally in


legal directories as an expert in the areas
of human rights, environmental law and
governance, for her intellect and gravitas,
her breadth of experience in compliance
Anurag has more than 20 years’ and crisis management and the ability to
experience in project finance, infrastructure help clients deal with complex issues. She
investment and appraisal, risk management, also sits on the UK Government’s export
M&A, and financial advisory. credit advisory group as an adviser on
Silke is the chair of Legal Response Over his career he has accrued climate, and ESG matters.
International, a legal charity assisting least extensive transactional experience across Vanessa has extensive experience
developed countries in relation to the infrastructure sectors such as transport, advising on a broad range of environmental,
UNFCCC negotiations. power and utilities, renewables, TMT, and health and safety, social and sustainability
On the ESG front, Silke chairs HSF’s social infrastructure (PPPs) – among others. issues. She has particular expertise in
global ESG practice and is currently a environmental, social and security issues
member of the advisory board of the on energy and infrastructure projects. She
Commonwealth Climate and Law Initiative at Vanessa Havard-Williams   also advises financial institutions on their
the University of Oxford and is a professor at Linklaters  development of sustainability policies,
Queen Mary University where she teaches including the Equator Principles Association,
international energy governance and There are few lawyers on the street that IFIs and a number of commercial banks.
regulation. come with an ESG pedigree as impressive
Silke advises in English, French, German, as that of Vanessa and when we started
Dutch and Spanish. researching the ESG Awards back in 2018 Chris Holmes
(yes, it’s taken a while) she was repeatedly Foresight Group
recommended as a powerhouse in this
Anurag Gupta  space. A highly-regarded figure from the UK
Sequoia Investment Management  Vanessa joined the steering committee infrastructure community, Chris has had an
that helped formulate the awards criteria… interesting career that took in the roller-
It feels like IJGlobal has followed Anurag which we hope give entrants a more honed coaster ride that was the Green Investment
from Toronto to London, back to Toronto… view of what they need to prove in their Bank and its sale to Macquarie.
and back to London again as we stay submission to win an award. It was during Quite apart from living along the road
in touch whichever side of The Pond he this process that it became abundantly from the author of this piece… he was
happens to be on. apparent why she is so highly regarded. spied several times during lockdown taking
His last stop Canada-side was as partner She is the leader and a founding partner exercise breaks with a quite charming
and global sector head for power and of Linklaters’ global environment and spaniel, and can often be seen pegging
infrastructure at KPMG, giving him a truly climate change practice, while also being it along the less fashionable outreaches
international feel within the Big 4. co-lead and a founding partner of the firm’s of Richmond on a bike that looks worth
However, he returned to the UK early last risk and resilience and crisis management stealing.
year (2020) to take up his new role as chief teams. Bringing those areas together, Chris joined Foresight Group in 2019 as a
risk officer and chief operating officer at Vanessa leads Linklater’s global ESG partner in the London office with a co-lead
Sequoia Investment Management Company. practice. responsibility to the JLEN fund.

www.ijglobal.com Summer 2021


7
ESG Awards 2020

ESG Awards Judges

Chris Holmes She is senior environmental counsel in Ana Carolina Oliveira 


White & Case’s project development and ING 
finance group in London, covering UK,
Europe, the Middle East and Africa. Ana Carolina Oliveira 
Tallat advises corporate and financial
clients in various sectors on regulatory
compliance, the application of international
environmental and social requirements such
as the Equator Principles, IFC Performance
Standards, UNSDGs and multiple reporting
and disclosure initiatives.
Her ESG practice also covers business
and human rights, sustainable finance
solutions and climate change issues.

Liam O’Keeffe 
KEB Hana Bank 
He has more than 23 years’ experience
in infrastructure investment and financing in Liam O’Keeffe 
PFI/PPP and renewable energy projects.
Prior to Foresight, Chris worked at John
Laing Capital Management as a director
where he co-led the investment advisory
services for JLEN.
Before joining JLCM, Chris was managing Ana Carolina was recommended for the
director and head of the waste and judging panel by IJGlobal editor Ila Patel
bioenergy team at the UK government’s who wrote a feature on ING last October
Green Investment Bank (GIB) for four and was impressed by her views on ESG.
years – which was subsequently bought Ana Carolina heads ING’s sustainable
by Maquarie and re-branded to the Green finance team covering the Americas region.
Investment Group. She works with ING clients in providing
In addition, Chris worked for NIBC Bank for structuring and advisory of sustainable
12 years, lending, advising and structuring finance solutions, to support them in
capital market solutions on a wide range of Another old friend of IJGlobal from back accelerating their sustainability transition.
infrastructure and renewable transactions. in his Credit Agricole days in a leadership She also plays an integral role in
role in syndications – a relationship that supporting ING’s Terra approach, a
continues through to today, now that he is commitment to steer its €600 billion lending
Tallat Hussain  heading the project finance division at KEB book in line with the goals of the Paris
White & Case  Hana Bank in London. Agreement to keep global warming to well-
Liam has often cropped up on IJGlobal below two degrees.
Tallat first came to IJGlobal’s attention in judging panels over the years and his Ana Carolina also represents ING in
2020 during some conversations where encyclopaedic knowledge of the global supporting industry discussions as a
her forthright views on ESG struck a chord infrastructure market has ensured repeat member of the executive committee of the
with the team and ensured her place on the invitations – not to mention his charming International Capital Markets Association
inaugural IJGlobal ESG Awards judging panel. Celtic routes. (ICMA) and sustainable-finance related
Liam has more than 30 years of project working groups.
Tallat Hussain  finance experience and has been head of She has extensive experience in advising
PF for the EMEA region at KEB Hana bank clients on capital structure and working
since 2019. capital optimisation and previously has
Prior to that, he was a managing director served as a director in ING’s healthcare
and head of special projects at Credit sector group where she covered US large
Agricole CIB. While there, he supported multinationals and was one of the founders
the City of London on its Green Finance of ING global healthcare platform.
Initiative and had a paper published on tidal Prior to that she was a senior credit
power in Environmental Finance. officer on the New York credit risk team
He was also a non-executive director of beginning in 2012, after working four years
the bank’s pension trustee and spoke at at ING‘s environmental and social risk team
conferences on the importance of pension in Amsterdam, when she supported ING in
funds adopting green investment strategies. steering the Equator Principles review.
He has also worked at CIBC and KPMG Before that, Ana Carolina worked in The
and is a qualified chartered accountant. Netherlands and in Brazil.

www.ijglobal.com Summer 2021


8
ESG Awards 2020

ESG Awards Judges

Sarah Roberts  Patricia is a real assets investment Prior to joining Vantage, Lisa was
INTECH Risk Management  professional and non-executive board associate director and head of portfolio
director with a breadth of experience across management, infrastructure and renewables
Sarah Roberts 
infrastructure, real estate and private equity. at NIBC Bank, where she ran a book
Over the past two decades, Patricia has of more than 120 debt transactions
been an investment manager at Macquarie, across Europe. She also worked for the
multi-manager at Townsend and LP at the UK infrastructure teams at IKB Deutsche
Government and PSP, leveraging her cross- Industriebank and Abbey National (now
sector perspectives to carve a unique path. Santander).
Patricia’s dual ambitions of investing well
and seeking to protect the planet led her
to join in 2011 the UK Government to help Simon Whistler 
create the UK Green Investment Bank, the Principles for Responsible Investment
world’s first green bank. Patricia has been
a non-exec director at AERIF plc since Simon Whistler 
2019, focused on governance and investing
sustainably in European renewables advised
Sarah first appeared on the IJGlobal Awards by the manager Aquila.
2020 judging panel for Europe, coming on She is an independent investment
a recommendation from Guy Dunkley who committee member at GLIL, funded by
heads the IJ Americas subscriptions team leading UK pension plans to invest in UK
out of New York. infrastructure. Patricia began her career in
Guy rightly identified that Sarah would finance with Morgan Stanley.
bring a fresh insurance dimension to the
judging process and this was borne out by
the experience of having her on the panel Lisa Shaw 
earlier this year. Vantage Infrastructure 
Sarah took an active role in working on
Canada’s first P3 projects and these days The first mention of Lisa in the IJGlobal When it came to pulling together a panel
splits her time between the INTECH offices database dates back – impressively – to for the ESG awards, we reached out to a
in Toronto and Vienna. 2006 when we reported on her joining NIBC few contacts for a recommendation for an
She is heavily involved with designing Bank from IKB. Those were the early days… organisation that plays a key role in this
and implementing insurance specifications the banking days. space… and Simon was singled out as the
in all major agreements forming part of large person to talk to.
projects, including roads, bridges, tunnels, Lisa Shaw  By way of a compliment, it was not just
hospitals, schools, courthouses, and other the organisation that was identified as a
major publicly funded projects. good one to have on the panel… he was
identified as “the right person” within the
right organisation.
Dr Patricia Rodrigues Jenner  Simon joined PRI in June 2018 and leads
GLIL IC and AERIF board  the organisation’s work on real assets.
He works with real assets investors to
Dr Patricia Rodrigues Jenner  support their understanding and integration
of responsible investment in their investment
processes.
His most recent work has included
projects on developing guidance for real
More recent (the last decade) career assets investors on implementing the
developments have seen Lisa play a prominent recommendations of the Taskforce for
role in a couple of infrastructure funds where Climate-related Financial Disclosures (TCFD)
ESG has played an increasingly central role. and looking at the role of investors in relation
Lisa joined Vantage Infrastructure in 2013 to the sustainable development goals (SDGs).
and has more than 20 years’ infrastructure Prior to joining the PRI, Simon worked
debt experience. These days, she leads for more than 10 years at Control Risks
Vantage’s global asset management for the where he led a team providing political and
debt business. social risk advisory support to investors and
She is responsible for all of the debt corporate clients in Latin America. This often
Looking back over the IJGlobal archive and team’s analytical processes including involved carrying out pre- or post-transaction
Patricia crops up quite a few times. One of ESG, credit assessment, valuation and DD for major investments and operations,
the key appearances in these pages was performance. Lisa is a member of Vantage’s as well as assessing clients’ social risk
when we announced her appointment to the debt investment committee and of the management and governance frameworks
UK’s Green Investment Bank back in 2012. GRESB Infrastructure Debt Working Group. and performance.

www.ijglobal.com Summer 2021


9
IJGlobal Awards 2020
2020

2020

This year we have gone all-out with


the IJGlobal Awards to give the
market something to celebrate in a
year that has been remarkable for
having little to smile about.

Congratulations to all the winners!

www.ijglobal.com Summer 2021


10
IJGlobal Awards 2020
2020

The Societe Generale


Interview
Riding high on two regional awards for MLA as well as scooping the global lending trophy
and a key financial advisory win, Societe Generale leading light Federico Turegano talks to
IJGlobal about 2020 and beyond…
The IJGlobal MLA of the Year Award is one Federico Turegano Meanwhile on the APAC judging team,
of the most hotly-contested prizes to be one panellist was “impressed by the
presented each year, requiring significant diversity of their portfolio” recognising the
international financial closes in the previous lender for being involved in “Taiwan’s first
calendar year to impress the independent floating solar and the massive Ichthys LNG
judging panels. and Roy Hill iron mine refinancings” while
Societe Generale achieved this by winning also driving on “Taiwan’s offshore wind
in Asia Pacific as well as Europe which market and India’s solar portfolio financing
– combined with scoring well with other market”.
regional judging panels – led to it picking up While recognising an exceptional 2020,
the Global MLA of the Year Award for 2020. Federico Turegano – Societe Generale Global
To cap off its achievement, SG was also Head of Natural Resources and Infrastructure
named African financial adviser of the year. – says: “There is huge pride for what the
At the European judging session, teams have achieved in 2020.
established industry professionals admired “The awards you have bestowed on us
its “broad range of transactions, in particular are very flattering. The amount of work we
in renewable energy” while also singling were able to achieve for our clients while
out the French bank for being “impressively working from home – dividing time between
active in digital infra and displaying a level "The awards you have work and family and pandemic worries –
of involvement that comes across as a true has been mind-boggling.
MLA leader”.
bestowed on us are very “It was a spectacular year for the business
One judge at the European session lauded flattering. The amount of work as far as advancing the topics of renewable
the “significant roles it played” with another we were able to achieve for energy and transition to clean energies in
adding that Societe Generale had been several markets, but also on the human
involved in a “good selection of large-scale our clients while working from side. I am deeply impressed and grateful for
renewables and fibre transactions, delivering home has been mind-boggling." what was delivered in 2020 under extremely
large transactions in emerging sectors”. difficult circumstances.”

Societe Generale was recognised for being involved in the innovative Changhua Floating Solar Project in Taiwan

www.ijglobal.com Summer 2021


11
IJGlobal Awards 2020
2020

Olivier Musset - Global Emmanuel Chesneau - Global Herve Le Corre - Global Stephanie Clement de Givry - Global Head
Head of the Energy Group Head of Trade Commodity Finance Head of Infrastructure Finance of Mining, Metals and Industries Finance

To 2021 and beyond… “hydrogen”… even though all accept it is But that is far from being the only growth
However, it is the future that preoccupies still at fledgling stage. However, in infra/ region for SG. Federico adds: “In North
Federico. His view of the market is heavily energy, change can be blisteringly fast. America we are seeing a significant volume
influenced by market shifts of recent years As Federico points out, when oil prices of activity around renewables, including
alongside climate announcements that are last May crashed and briefly even entered offshore transactions.”
driving ESG and alternative energy up the negative territory, this would traditionally have But the conversation keeps turning
agenda. brought renewable energy developments to back to hydrogen where there is “plenty of
“All eyes are turned to where we go a grinding halt, but that did not happen. dialogue going on”.
from here and how we accelerate energy “I think we have reached a turning Federico says: “This time around, there
transition alongside climate change and point where there is no going back on the is recognition that hydrogen is here to stay.
sustainability,” says Federico. “This is a mindset,” says Federico. “And that is just Some of us are old enough to have seen
question being discussed right now – across as true with the consumer as it is with the hydrogen a few decades ago, but this time
every industry and sector including clients, generating sponsors involved in transitioning it’s taking off – even if we don’t yet know
journalists as well as my senior management the electricity mix. how it will evolve.
– and all eyes are focused on the next few “This is exciting. We have taken an “Look at the renewables market less than
years when significant developments are irreversible step in the right direction and the a decade ago. All we talked about was
going to have to be achieved globally by the only way to go now is the same direction how we couldn’t wait until we could attach
industry as a whole.” – and faster.” This is a sentiment that has industrial scale batteries to wind farms so
For Federico – and the wider infrastructure spread through the teams that Federico they can supply energy when the wind isn’t
/ energy market at large – this decade will leads at Societe Generale. blowing.”
prove pivotal if global environmental targets “For the oil and gas teams, they know the Hydrogen, Federico believes, is reaching
set for 2040 and 2050 are to be achieved. gas pipelines that today transport natural a comparable juncture and that with the
“This is the most critical decade for gas in one direction will continue to be entire community backing the likes of
sustainable finance and renewable energy. useful when some day they may transport hydrogen and carbon capture, commercial
If you look at the recent IEA paper, it hydrogen, and why not some day CO2 the viability is far closer than some may think.
estimates that as much as 50% of the other way so they can be re-injected under
technologies that will be applied to save the carbon capture structures,” he says. Embrace complexity
planet are either in prototype development “It is not a case of this or that team As for a final message to the market,
right now… or don’t exist,” he says. becoming an endangered species. On the Federico encourages people across the
“So this decade is going to be fundamental contrary, they are already thinking about sector to be ready to “embrace complexity”,
and 2021 and 2022 will represent for how to integrate an ESG roadmap into because it’s coming like a run-away train.
Societe Generale an acceleration across all everything they do. And that’s exciting. We “In the energy transition in years to
energy topics involved in energy transition. plan to be right there alongside the sectors come, we are unlikely to have a single
That includes renewable energy, hydrogen, we follow as they reinvent themselves.” magic bullet,” he says. “For example, in
digitalisation and the greening of all the United States in the first decade of this
industries – whether that be oil and gas, Geographic focus century, natural gas was critical in materially
metals and mining… you name it. As to where business will be driven, reducing emissions from the power sector
“We are looking at projects in green steel, Federico highlights that 70-80% of the as it switched away from coal.
attaching wind farms and solar parks to energy transition budget is expected to be “In the second decade, we have seen
mines, while also looking at renewable energy deployed in Asia. massive deployment of renewable energy
technologies that are not quite ready for prime “We have financed renewable energy globally and this now has sufficient
time – hydrogen and carbon capture. projects in something like 35 countries. Four momentum that it will (and must) keep
“This year will witness an acceleration of or five years ago, we were probably at 25,” going on its own.
everything we have done over the last few says Federico. “We are opening several new “My sentiment is that there will be no single
years. The pace is going to pick up and markets every year that are getting their feet magic bullet, rather a host of technologies
there’s no going back.” wet – whether that’s floating solar in Indonesia of varying and increasing complexity that
and Taiwan, or offshore wind in Vietnam. will provide the solutions we need across
Point of no return “We are seeing markets that have not multiple markets. And we’re all going to
This sentiment is reflected in IJGlobal historically been involved in renewables have to be ready to move with the times.
readership where currently the single embracing alternatives. For Societe “Complexity and pragmatism will rule the
most searched word on the website is Generale, Asia is a huge priority.” way going forward.”

www.ijglobal.com Summer 2021


12
THE FUTURE
IS YOURS
TO CRAFT
Pioneering positive
impact solutions, we help
businesses leverage their
sustainable footprint.

Global MLA of the Year


Asia Pacific MLA of the Year
European MLA of the Year
African Financial Adviser of the Year

Societe Generale is a founding member of the positive impact initiative steering group of the United Nations Environment Programme (UNEP).
Societe Generale is a French credit institution (bank) authorised and supervised by the European Central Bank (ECB) and the Autorité de Contrôle Prudentiel et de Résolution
(the French Prudential Control and Resolution Authority) (ACPR) and regulated by the Autorité des Marchés Financiers (the French financial markets regulator) (AMF).
Societe Generale London Branch is authorised by the Prudential Regulation Authority with deemed variation of permission and is subject to regulation by the Financial Conduct
Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for
a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Copyright: Getty Images. June 2021.
IJGlobal Awards 2020
2020

The ACWA Power Interview


ACWA Power chief investment officer Rajit Nanda speaks to IJGlobal about a successful 2020
that saw it pick up four IJGlobal Awards for deals closed in the Middle East and Africa
Looking back at the 2020, ACWA Power managed to ensure that the construction Rajit Nanda
has plenty to celebrate – with the latest activities progress without inordinate delays.
achievement being to win four awards for Initiatives like daily awareness
deals closed across the calendar year in the sessions, health monitoring and welfare
Middle East and Africa. management were taken to keep people
Rajit Nanda, chief investment officer safe and protected along-with building
at ACWA Power, runs through the latest multiple teams and redundancy shifts. Our
accolades with wins for the refinancing of execution and operational acumen and risk
Al Dur phase II IWPP; MENA Renewables management abilities extend confidence for
Deal of the Year for DEWA V; MENA Water our government clients, investment partners
Desalination prize for Jubail 3A; and a prize and lenders to work with ACWA Power to
in the renewable energy refi category for develop new projects.
Bokpoort CSP in South Africa.
Here Rajit runs through the successes of A busy 2020
2020, celebrates four trophies and a host of During 2020, ACWA Power has developed
achievements beyond. and financed projects in the clean energy
Our projects are crucial sources of power and water sector across Dubai, South
and water supply to its nations of operation. Africa, Oman, Saudi Arabia and Bahrain
Our topmost priority is ensuring smooth representing
operations and timely construction of our • 1,400MW of solar PV capacity across two
projects with zero compromise on quality, projects in Dubai and Oman, representing
health and safety, and reliability. $965 million of investment and raising
ACWA Power is currently constructing $700 million of senior financing
eight projects in the region with an • 132MIGD of RO water desalination in "Our topmost priority is
aggregate capacity of 6.85GW of power Jubail 3A IWP project of Saudi Arabia,
generation and 530MIGD of water representing $650 million of investment ensuring smooth operations
desalination. This represents an aggregate of which $480 million was funded via and timely construction of our
investment of $12.55 billion. debt
The projects being constructed include
projects with zero compromise
the 950MW Noor-1 CSP project in Dubai, At the same time ACWA Power undertook on quality, health and safety,
the largest renewable energy project in three refinancing transactions, aggregating and reliability."
terms of cost and energy storage; the $740 million that enabled it to diversify
200MIGD Taweelah IWP in Abu Dhabi, the the debt pool, increase loan tenors and
largest independent water desalination improve shareholder value for the respective
project; and Sirdarya 1500MW CCGT plant, projects. these jurisdictions which – especially in the
ACWA Power’s maiden project in Uzbekistan Raising $1.9 billion in the midst of the midst of the pandemic – was a significant
that achieved financial close in April 2021. pandemic and the accompanying economic achievement.
Additionally, ACWA Power is currently downturn was challenging. The financing In these transactions, the relevant teams
operating 38 plants across nine countries, was raised in the context of banks across worked closely with the banks to ensure that
employing more than 3,500 persons. Each the region were under pressure from the lenders continued to stay committed
of our sites employ thousands during the governments to reduce long-term lending and support the transactions during the
construction phase and tens to hundreds and prioritize retail and SME borrowers several months of the financing process
of persons during the operating phase – versus infrastructure projects and focus on despite shifts in the financing markets
depending on the nature of the plant. in-country lending and reduce overseas arising as a result of the pandemic.
We do not compromise on the health and transactions. During 2020, ACWA Power forayed
safety of our personnel. Managing the site Raising financing in sub-investment grade into a new country with the development
team especially during the early months of jurisdictions such as Oman, Dubai, South of the 1500MW Sirdarya CCGT Project
2020 when there was uncertainty over the Africa, Bahrain are challenging even in the in Uzbekistan. This transaction achieved
nature of the virus and impact on execution best of times. However, these regions have financial close in April 2021, raising $750
resulting from travel restrictions, logistical been severely hit by the slump in economic million.
challenges and lockdowns has therefore activity due to the pandemic. ACWA Power is also actively pursuing
been a challenge. GCC nations are already reeling under opportunities in other regions in Central
Through our centralized oversight, the slowdown from the oil price crash Asia Africa and South Asia and will continue
dedicated project managers on the ground prevailing for the past 4-5 years. Raising to support these nations in their path to
and the support of our EPC contractors $1,175 million of competitive financing on a diversify its energy mix and increase its
and government stakeholders, we have long-term basis across four transactions in renewable energy capacity.

www.ijglobal.com Summer 2021


14
IJGlobal Awards 2020
2020

The Herbert Smith Freehills


Interview
Having won IJGlobal Legal Adviser of the Year for Europe and acted on numerous award-
winning deals, Herbert Smith Freehills partners Lewis McDonald and Gavin Williams speak
about a year like no other…
2020 was a good year for Herbert Smith judge continued: “There was a good mix He adds: “With Net Zero all of a sudden
Freehills (HSF), capping it off by winning of traditional infra and transition, which coming front-and-centre – having been on
IJGlobal Legal Adviser of the Year for included working on the BP Equinor deal the fringes of people’s investment strategies
Europe having worked on a swathe of – a key strategic step for BP – and an for years – the demand now for clean power
deals to be singled out for awards in their interesting interconnector.” is phenomenal.”
respective sectors and regions. However, one judge rounded it off nicely Lewis McDonald, global head of energy at
At the European judging session, the saying: “It’s always good to see HSF at the HSF, agrees: “The trends around the move
independent panel of industry experts table. When they’re involved, you know to Net Zero have been looming for many
lauded the international law firm for having you’re dealing with a well-rounded team years. If you think back, the Paris Agreement
brought to financial close in the 2020 with bags of experience.” was inked in 2015 and it has taken time
calendar year an “impressive, diversified Gavin Williams, global co-head of for that to settle in and be incorporated into
portfolio of successful deals”. infrastructure at HSF, says: “2020 was a national policy and legislation.
Another judge went on to say: “HSF phenomenally busy year for us across “In 2020, with the pandemic, slump in oil
stood out in a very competitive category as infrastructure and energy. Teams involved in prices and corporates starting to respond to
a firm with a great variety of transactions, digital infrastructure – particularly fibre, data governments’ movement towards Net Zero
multiple sectors and geographies. The firm’s centres and towers – across the continent – you’re starting to see the real acceptance
submission clearly set out key challenges have been super busy. of this as the new norm.
and how it worked with clients to resolve “Renewables was also relentlessly busy
those to deliver successful projects.” throughout the year. Sarah Pollock and Silke
The praise kept rolling in with yet another Goldberg were involved in BP’s first foray
judge adding: “Herbert Smith Freehills into offshore wind in the US with Equinor.
had a strong year and some interesting While this was a US deal, the deal was
deals which made it a winner.” The negotiated entirely in Europe.”

"As they say, the edges of the


jigsaw are now complete…
it’s just the middle that needs
to be filled in."
Lewis McDonald
Global head of energy
Herbert Smith Freehills

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15
IJGlobal Awards 2020
2020

Gavin Williams are already seeing a lot of activity around Lewis McDonald
UK water and there are several assets in the
gas space.
“More widely in power and renewables,
we expect a trend towards platform
establishment, investing to continue. In the
super-competitive markets of renewables
and digital, a lot of investors – particularly
deep-pocket sovereign money – are looking
for more creative ways to find their way into
those assets.
“They know that they are the future
and they are fed up with being outbid in
auctions. This is where platforms come in…
where you internalise expertise, go further
back down the development curve – or
higher up the risk curve – developing the
capacity to build assets from scratch. For
many, this is a better option than waiting for
someone else to do it and then investing in
them. We see this developing at pace.”
HSF speaks from experience on this
front having just acted for CPPIB on one
such deal and on a transaction for another
Canadian pension fund that has yet to be
made public.
Lewis joins in: “As the renewables space
becomes increasingly competitive for
"With Net Zero all of a sudden brownfield and primary leases, it is causing
coming front-and-centre – companies to think differently about where
having been on the fringes of they want to compete. They are moving into
the development space, and even into other
people’s investment strategies – less obvious – businesses that might feed
for years – the demand off the broader trend.
now for clean power is “This includes the likes of companies "As the renewables space
that are developing technology or services
phenomenal." that feed into the underlying core trend of
becomes increasingly
renewables.” competitive for brownfield and
This trend includes the likes of hydrogen primary leases, it is causing
“Take, for example, the larger integrated and floating wind energy.
energy companies. They have accepted this “We are seeing a lot of interest in those,” companies to think differently
new reality and put it at the top level of their says Lewis. “Clients want to hear a lot more about where they want to
company strategies, incorporating it into about it from us, but those areas still need a
their visions as to what sort of companies lot of work at the government level to build compete."
they want to be.” business models and make them work.
A lot of our clients want to get involved
McDonald & Williams in shaping this transition to help create
It is this shift in the market that is driving investable business models.” Lewis adds: “The problem this creates
business for Hebert Smith Freehills and, As they say, the edges of the jigsaw are for us – and companies involved in this
while more traditional infrastructure and now complete… it’s just the middle that space – is that if they have traditionally
energy sectors remain vibrant, there is a needs to be filled in. looked at more conventional renewable
frisson of excitement over cutting edge “During the course of the next 12 months energy sectors, they now have to shift to
deals. we will see that picture being completed create value from different technologies…
“The course is set and we’re starting – certainly in the UK. Germany is also well that’s a different mindset and it’s incumbent
to see deals come through, proving this advanced,” says Gavin. “A lot of structural on us to converge our skills to make them
strategy is real,” says Lewis. money has come from the EU, particularly available to the client.”
Gavin adds: “Closer to home, there is to Spain and Italy, which comes with green And this plays to the strength and breadth
already a lot of activity around UK regulated strings attached. of the HSF team having a full suite of
assets, the conclusion of various regulatory “There is particular impetus for these experience tackling projects across multiple
reviews towards the end of last year has projects to become investible sooner sectors in numerous geographies.
reset the cost of capital expectations and rather than later because that’s where This leads one to think that 2021 (and
– for some investors – that will mean it is governments want to take their energy beyond) holds an exciting future for law
no longer part of their strategy. For others policies. But at the moment, they haven’t firms like HSF that position themselves
it means an opportunity to invest in the UK worked out the right risk allocation to crowd ahead of the curve in a constantly-evolving
as a well-regulated infra environment. We in private capital.” infra/energy market.

www.ijglobal.com Summer 2021


16
IJGlobal Awards 2020
2020

The Quinbrook interview


Quinbrook Infrastructure Partners has been voted the IJGlobal investor of the year for North
America, recognising the role it played on transactions in 2020, particularly its delivery of direct
and measurable ESG. Co-founder and managing partner David Scaysbrook spoke to IJGlobal
about the previous year and the direction the investor is headed in 2021 and beyond.

Quinbrook has built a reputation for staying Quinbrook’s diverse portfolio of cutting- David Scaysbrook
ahead of the curve in energy transition, edge technology investments puts it at
making moves before others and positioning the forefront of the accelerating energy
itself in newer markets, capturing that transition to achieve ‘Net Zero’ emissions
essential first-mover advantage. from the US energy supply system.”
It’s hard to keep doing that consistently Quinbrook’s win was based on 3 key
but that’s the challenge Quinbrook has investments, a green data centre joint
set itself - to become a leader in areas venture plus a record breaking solar and
that are relevant to its mission of cheaper battery storage project, and a large scale
renewables, decarbonisation and driving wind platform built from a startup.
Net Zero. The specialist investor formed a joint
It is for this reason that Quinbrook was venture (Rowan) with Birch Infrastructure
selected for the IJGlobal Awards 2020 to develop and commission new
Investor of the Year by an independent ‘powered land’ solutions for mission
panel of judges. As one judge said: “Given critical, hyperscale data centres that
the current emphasis on green energy, net take advantage of low-cost renewable
zero carbon footprint, and environmental power. David Scaysbrook, co-founder and
stewardship, Quinbrook’s engagement in managing partner of Quinbrook said: “This
the sector makes them the clear frontrunner was a good example of how we felt we
in this category this year.” could apply our developer DNA to capture
Other judges said Quinbrook had an new high growth opportunities. Even
“impressive portfolio of innovative green though we are a fund manager we have
"We wanted to continue to
energy and data projects, demonstrating mostly energy industry experts in our team. focus our core skills in new
leadership in what can only be significant We wanted to continue to focus our core asset creation by marrying
growth areas” and showed “clear skills in new asset creation by marrying the
and concise examples of sustainable needs of energy intensive industry with our the needs of energy intensive
investments”. developmental ability in renewable projects. industry with our developmental
And one judge said that due to “We aren’t data centre experts, but we
its investments in new infrastructure are highly experienced in development-
ability in renewable projects."
assets: “Quinbrook delivered direct and led renewable power solutions and felt we
measurable ESG impact across job creation, were qualified - if we could find the right was very sympatico with us - halfway down
preservation and training, carbon emissions partner - to go after this particular customer this path. They brought their data centre
reduction, environmental improvement, local segment undergoing huge growth in power experience and we brought our renewable
community financial and social benefits. demand. In Birch we found a partner - who energy experience. This is indicative of our
future direction in developing and supplying
The 690MW Gemini solar + battery storage project believed to be innovative and low cost zero carbon power
the largest solar-powered battery storage system in US history
solutions to energy intensive customers.”
Green data centres is a new thematic
for Quinbrook. It is the first transaction in
the area, setting the foundations for what
it believes will be many more investments
to come. There are over 20 sites in the
joint venture portfolio pipeline already and
Quinbrook and Birch are actively working
on 3 additional data centre projects in
advanced negotiations, one in Australia
and 2 in the US. “We are branching out into
not only enterprise and high-performance
computing but also dedicated block chain
data centres, another high growth sub-
sector we are increasingly interested in,”
says Scaysbrook.

www.ijglobal.com Summer 2021


17
IJGlobal Awards 2020
2020

Quinbrook launched Primergy Solar in The Scout Clean Energy’s Bitter Ridge Wind the epicentres of cheap power and we
2020 to acquire, develop and operate solar Farm construction was completed in 2020 believe this is where new green industry will
PV and battery storage projects in North be built”.
America with the $1.1 billion capex, 690MW “Australia is naturally endowed with a
Gemini solar + battery storage project competitive advantage to be an exporter
believed to be the largest solar-powered of products and commodities that can
battery storage system in US history. By be manufactured or processed with low
historic standards, Quinbrook’s Primergy carbon impact by using cheap renewables.
Solar went through the permitting process It has cheap and vast land mass, abundant
far faster than expected by taking advantage solar, wind and transport logistics enabling
of a Trump initiative called Fast 41. This law the competitive manufacture of green
requires all federal agencies to consider hydrogen, metals, ammonia and other green
new project applications in 12 months. So transport fuels. This changes the landscape
what could take 3-4 years actually got done and explains why we do certain things in
in less than half the time. Scaysbrook said: certain places and not others and who our
“We didn’t realise at the time that we were customers are or are likely to be”.
negotiating the biggest solar project in US “Last year [2020] 90% of all new
history!” power capacity added on the planet was
The Gemini project is also using a DC renewable so the next question is: what do
coupled system which uses an electrical we do with all that cheap clean power? We
configuration designed to add more want to substitute and electrify industries
efficiency and is one of the first DC-coupled that are still using fossil fuels, that is where
solar battery storage systems of its size in • completing construction of Scout Clean Quinbrook is heading,” says Scaysbrook.
the US. Energy’s Bitter Ridge Wind Farm in Scaysbrook explains that hydrogen is
A third standout deal for Quinbrook Indiana much like aluminium, with a lot of electricity
was Glidepath Power Solutions, a start-up • securing final US Government approvals effectively embedded in the end product
business that it acquired in 2017. At the for the Gemini Solar+ Storage project in so the bigger energy intensive projects will
time, Quinbrook was looking for a team Nevada gravitate to those locations that can produce
that had expertise in battery storage which • merging the Energy Locals and Energy it the most cheaply: “Texas and Australia
was a growing sector but still very nascent Trade distributed energy businesses have enduring competitive advantage
and risky. Fast-forward to 2020, Glidepath in Australia and hitting the 50,000 so these places will likely become
has grown to a portfolio spread over 19 US contracted customer connections target preferred host locations for the large scale
states and a near $5 billion potential capital manufacturing of green hydrogen as just
investment pipeline of battery storage A few big thematics that Quinbrook is one example. Green hydrogen is an industry
projects. focusing on in 2021 are foundation solar that will be like a bushfire, once it starts it
In February 2020, Glidepath announced and battery storage hybrid projects. Solar will rage!”
that it would complete development and and battery storage is disrupting power Regionally, Quinbrook tends to stick to
achieve construction readiness on one of markets because of the low cost of countries and markets it knows well - UK,
the largest portfolios of standalone battery renewable electricity they can generate, the Australia and North America - and has no
storage projects to date in New York State Gemini deal being a perfect example of this. current plans to venture outside of those
after receiving an incentive award from “We want to take our experience in territories. Scaysbrook says: “According to
the New York State Energy Research and the coupling of solar and battery storage EY, the US, UK and Australia are 3 of the top
Development authority (NYSERDA). and help energy-intensive industry to 5 to invest in renewable energy globally and
The portfolio consists of 4 X 20MW decarbonise through the supply of low cost we are already operating at scale in each of
battery storage projects which would renewable power,” says Scaysbrook. them. It’s a big decarbonisation challenge
more than double New York state’s current “Another key area that we want to in each of those 3 markets over the many
storage capacity, providing a cleaner, more enhance our expertise in is the application decades to come. These countries are so
efficient and lower-cost alternative to the of digital and advanced data analytical opportunity rich that we don’t really need to
fossil fuel plants that presently provide technologies to better differentiate our go off frontiering.”
peaking power and ancillary services. projects and boost the value of our Given that Quinbrook has just 20
Quinbrook’s 2020 goals and looking infrastructure assets. This is where we investment professionals globally, it certainly
ahead will focus on the application of machine- gets a lot done! “We haven’t missed a beat
“In 2020, most if not all of the goals learning and artificial intelligence to optimise because of COVID-19 given the continuing
we set for the year were achieved,” says the dispatch and management of our velocity of our work, and in fact our workload
Scaysbrook. Those goals included: assets. This is where we think the market is has likely doubled in intensity” says
• fully allocating the Low Carbon Power heading and is consistent with our role as a Scaysbrook. “We want to continue to move
Fund by the end of 2020 ‘hands on’ active asset manager”. into smarter areas of the market offering
• getting the UK flexible power portfolio to Quinbrook is also looking at green fuels better returns before our competition, we
scale and hitting the 300MW target size and green hydrogen production - both aren’t interested in doing the biggest deals
threshold areas that it is monitoring closely because for the sake of it although we’ll continue to
• diversifying into a new sector: they are areas that it feels will grow and do benchmark transactions or precedent-
management of flexible power assets mature in different countries at different setting deals if they make sense - it’s really
and demand response in the UK by times. “Australia and certain states in the about staying ahead of the curve and trying
acquiring Flexitricity towards the end of US that have a strong endowment of always to be the best investor we can be for
2020 renewable energy resource could become our clients.”

www.ijglobal.com Summer 2021


18
NORTH AMERICA
INVESTOR OF THE YEAR
2020
Quinbrook Infrastructure Partners, a specialist investor in low carbon and renewable energy supply, storage and
grid stability infrastructure, has been recognized by IJGlobal as North American Investor of the Year for 2020.

Quinbrook's North American investments represent a diverse array of portfolio companies and projects spanning
onshore wind power, solar PV, battery storage and decarbonization solutions for hyperscale data centers.
Quinbrook is pleased to acknowledge the recognition by its industry peers of the team's efforts to progress the
energy transition through the creation of new and impactful energy infrastructure.

Signatory of:

Quinbrook is not a paid subscriber to IJGlobal nor did it pay as a condition of eligibility. The awards are not indicative of future performance. IJGlobal awards
are made based on nominations by market participants, including Quinbrook, and assessed by a panel of independent judges comprising financial market
professionals, academics and independent experts. Quinbrook was the only firm designated as ‘2020 North American Investor of the Year’ among a group
of four investors considered by IJGlobal’s expert panel in this category.
IJGlobal Awards 2020
2020

The DBS Interview


Winner of the IJGlobal Financial Adviser of the Year 2020 for the Asia Pacific region, DBS has
a strong reputation among peers and clients for dependable service
From its roots as Development Bank of Subash takes the feedback in stride as Subash Narayanan
Singapore to today as Southeast Asia’s the Indonesian project is the bank’s last in
largest bank by assets, DBS is a mainstay coal.
across Asia’s energy and infrastructure “We were one of the early Asian banks
finance market. to come out with a coal phase-out strategy,
DBS provided financial advice on many exiting first sub-critical coal and now all of
consequential transactions that closed in coal power including greenfield IPPs,” says
2020. Our team of Asia-based independent Subash.
judges, who virtually met in April this year, “We had the Java mandate since 2017. It
voted the Singapore-headquartered bank was important for our commitment to clients
IJGlobal Financial Adviser of the Year for the that we finish the job because they value
Asia Pacific region. steady, dependable and resourceful teams
“DBS had a strong diversified set of with lots of patience and perseverance,
mandates with a robust green focus,” said especially in Asia where advisory mandates
one of the judges. can take many years.”
DBS global head of project finance DBS also had to manage challenging
Subash Narayanan reflects on the judge’s aspects of conflicts of interest. A subsidiary
remark. of Indonesian state-owned utility PLN held
“It’s spot on in terms of what we are trying a majority in the project company. The deal
to do as an Asian bank,” Subash says. required a bespoke corporate governance
“We’re very happy to know the market is solution to satisfy lender concerns because
recognising us in the renewables space. PLN was also the offtaker. It’s a possible
We’ve seen our exposure to renewables model for future Indonesian IPPs.
grow rapidly during the past few years – “This was the first deal closed with a PLN "We’re very happy to know the
from S$0.29 billion in 2016 to S$4.2billion subsidiary as majority shareholder,” says
in 2020.” Subash. “Indonesia adapted the shareholder/ market is recognising us in the
In 2020, DBS participated across a range offtaker model from the Middle East. renewables space."
of technologies in renewables, including on- However, a major difference is the Middle
and offshore wind, hybrids and geothermal. Eastern sponsors tend to be investment
Its advice on 2 floating solar financings grade – A or AA rated entities. Here, the “It’s pleasing to see clients appreciate our
– the large, groundbreaking 180MW PLN subsidiary was a BBB first time risk. The work and want us in the mix again. Repeat
Changhua Lundong floater in Taiwan and commercial banks and the long-term debt clients validate the work we do and the
the 60MW Tengeh Reservoir floater in providers, the Korean ECAs, had to work value we provide,” Subash says. “We are
Singapore – caught the eye of judges. towards quite a different funding plan.” also keen to bring in ancillary, value-added
DBS also led financing on Vena Energy’s The World Bank negative pledge with services, such as being the account bank or
100MW / 150MWh Wandoan energy Indonesia preventing lenders from securing providing a performance bond.
storage in Australia – Australia’s first utility the assets of state-controlled projects also DBS was FA, MLA, account bank, facility
scale battery project that did not receive any complicated the structuring. agent, security agent and hedging bank for
government assistance. A judge complimented DBS’ tenacity in the financing of the 180MW floating solar
“Our spread across technologies gives us working with a large state-owned sponsor. in Taiwan.
the confidence we can do more,” Subash “They had to work around the PLN and Asia’s financial advisory market is distinct
adds. “We have upcoming battery deals, all the share pledges issues. It was an from other regions. A main difference from
including important mandates in India and important and difficult deal,” said the judge. Australia, Europe or the US is the time these
Indonesia’s renewables-plus-battery-storage Java 9 & 10 also demonstrated the bank’s mandates need to close.
markets. We continue to move up the value growing capabilities in equity advisory. “In Australia or Europe,” says Subash,
chain tackling state of the art technologies.” Subash’s team worked with the DBS “a sponsor may plan for a 12-month
The judges also candidly discussed DBS’ strategic advisory team to bring in Kepco transaction. It will tend to get done within 12
performance. “I really struggled because as a foreign sponsor. “We’re venturing more to 16 months. Here in Asia the expectation
of the coal project,” said a judge. Others into the M&A space,” he says. is double that, if not more. Not only does the
echoed the sentiment. DBS is also equity financial adviser on a market need patient capital it also needs
DBS was the financial adviser on the gas-fired power plant in Bangladesh. teams that prize perseverance to follow the
2GW Java 9 & 10 coal-fired power complex Subash stresses the importance of repeat deal through.”
in Indonesia. The bank raised $1.1 billion of clients like Sembcorp, A Singaporean Subash reflects, “Clients value people
$2.5 billion from commercial banks, one of energy and urban development company. who understand local markets. We need to
Indonesia’s largest commercial tranches for He also emphasises the bank-wide have people with patience and, as an Asian
greenfield IPP financing. capabilities at DBS. bank, we know how the market works.”

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IJGlobal Awards 2020
2020

The Fitch Interview


In an unprecedented period of uncertainty and change, Fitch Ratings stood out from its
competitors in the global infrastructure sector. It is for this reason that it picked up IJGlobal awards
for ratings agency of the year in all 4 regions - MENA, APAC, North America and Latin America.

Fitch had an outstanding 2020, with its portfolio and provided credit views.” Cherian George
global infrastructure & project finance team With ESG, Fitch is currently the only
consolidating its market leader position by ratings agency with an integrated,
actively monitoring the performance of 900 comprehensive, systematic and credit-
transactions globally and adding 60 new focused approach showing how ESG factors
issuers to its portfolio. affect credit ratings from the sector to entity
But what made Fitch really stand out in and transaction level.
2020 was its response to the pandemic and In the global infrastructure sector, Fitch
its ESG leadership: has 4,550 unique data points capturing the
• In infrastructure, Fitch had 569 investor impact of ESG factors in its credit views.
interactions globally, including 102
investor roundtables, 73 Fitch-hosted ESG leadership
webinars, 9 conference presentations Given the importance of ESG in investing
and 244 one-on-one investor meetings; and to governments and society at large,
• It was the only ratings agency to provide Fitch has enhanced transparency in this
complimentary access to a dedicated space over the last few years. “Our ratings
Coronavirus website featuring research, criteria incorporate all the major aspects
multi-media content and webinars on of the risks associated with transactions
Fitch’s perspective on the credit and in project finance and within each risk are
economic impact of the pandemic. ESG elements such as building in sensitive
areas, the carbon footprint of projects
Cherian George, global head of and the importance of governance”, says
infrastructure & project finance at Fitch, George. "The pandemic and the
said: “Our response to Covid-19 has been Fitch has created a system of providing shutdown of the global
excellent. We reviewed our 900 ratings relevance scores where investors can
globally in 2020, and multiple times with connect ratings criteria to ESG elements
economic threw a curveball at
more than 50% in the transport space. and risk associated with it. “We score them us. However we have such an
Given that this was the sector most on a scale of 1 to 5, where 1 has little experienced team that they
impacted, from March 2020 onwards relevance and 3 has relevance but won’t
we systemically went through the entire have a material impact meaning it won’t were able to respond very
quickly with strong analytics."
During 2020 Fitch had 569 investor interactions globally, including 102 investor roundtables,
73 Fitch-hosted webinars, 9 conference presentations and 244 one-on-one investor meetings

affect the rating. But the moment there is an


issue - whether positive or negative - where
the ESG related factor is affecting our rating,
it gets a 4. And if it results in a change in
the rating, it gets a 5.”
What Fitch provides is an ‘ESG Navigator’
that offers investors the tools to make a
judgement. “A rating tells you what the
credit risk is, the ESG navigator tells you
that if you have an ESG focus, these are the
parts of the credit that are being affected”,
says George.

Stress-testing
The focus for Fitch in 2020 was to improve
the quality of its products, increase
transparency, continue with ESG leadership
and build out the team further.

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IJGlobal Awards 2020
2020

“The pandemic and the shutdown of the Digital Infrastructure “2021 has been a continuation of 2020,
global economic threw a curveball at us”, While digital infrastructure is not a new with a focus on even better products,
says George. “However we have such an sector, Covid-19 has highlighted the enhancing the quality of our research and
experienced team that they were able to importance of this asset class, particularly asset performance information to provide
respond very quickly with strong analytics. for governments to equip the population value-added analysis to the market. There
A great example of this was in March 2020 with access to networks. are legacy sectors that we continue to focus
when we knew we had a problem, we One notable transaction Fitch worked in on but in our space people are always
scanned all the areas we cover quickly, and this sector was SummitIG’s high capacity innovating and coming up with new ways
commented publicly to the market, concluding network of fibre optic cable assets in of doing things which requires us to be one
that transport would be the most impacted Virginia. Fitch assigned A-, BBB- and BB- step ahead in our thinking.
and that contracted projects would be less so ratings to 4 series of notes, totalling $225 “We say what we do, and then do what
because of the stability of counterparties.” million. The transaction, which replicates we say - both are important.”
Fitch then began looking sector by sector, structures that have been used for cell tower George says that Fitch will continue to
and came up with stress tests. It was the only and data centre financings, was a landmark focus heavily on renewables, an area of
ratings agency to publicly disclose coronavirus first financing of its kind of fibre assets. tremendous strength globally as we rate
stress tests across transport, in every region Fibre remains an emerging infrastructure transactions in every region; in developed
and in every sector. “To this day, I haven’t seen asset class with the SummitIG transaction and developing markets.
any other agency do that”, says George. being the first North American non-recourse “Other area of focus for us are emerging
George added that a year later, Fitch’s fibre bond financing since Fitch rated the technologies and sustainable fuels in
views have “stood the test of time”. Kentucky Wired Infrastructure Company P3 the energy transition mix. Batteries and
“Fitch doesn’t make blanket decisions, in 2016. green hydrogen technologies and cost
every market is different, every region is Kentucky Wired and SummitIG transactions considerations are evolving as we speak,
different, and you need to make selective were very different in that Kentucky Wired and consequently are areas we seek to
decisions based on the conditions there. was an availability-based P3 project that improve on,” says George.
Airports unsurprisingly had a negative outlook didn’t feature market or re-contracting risk “The Middle East is also growing
with some downgraded and toll roads to while SummitIG transaction did, albeit significantly with energy, transport, social
a lesser degree. Seaports surprised us all. largely mitigated by its strong position in an infra and sports transactions emerging.”
They outperformed any historical benchmark important market and high barriers to entry. George adds: “We are a global
because coronavirus does not affect goods.” company with global presence but
Fitch also put in place quarterly global Staying one-step ahead we are very conscious of the fact that
Covid-19 trackers to show traffic trends, George believes that infrastructure, energy local considerations make a difference
region by region relative to infection rates. and digital investments are growing at and having people on the ground who
“The market found these macro and micro a tremendous pace with not just new understand that better allows us to provide
perspectives throughout the year very construction, but M&A activity, refinancing the market with a complete and transparent
valuable”, says George. and restructurings. view of credit risk.”

ESG Relevance to Fitch’s Project Finance Credit Ratings


Relevance to Issuer Portfolio ESG Elements Driving Issuer Credit Impact
ESG Score of ‘4 or 5’)

6%
9
7

3
94%

No Impact Some Impact Environmental Social Governance

Source: Fitch Ratings, scores at launch time

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IJGlobal Awards 2020
2020

The White & Case Interview


IJGlobal speaks to White & Case partner and Head of the Africa Group, Mukund Dhar
about a highly successful 2020 and the international law firm’s aspirations for Africa in the
coming years…

Spring-boarding out of a hugely successful located close to Jacqueville, some 40km Mukund Dhar
2020 in which White & Case was crowned west of Abidjan, using highly efficient
African Legal Adviser of the Year in the combined-cycle turbine technology.
IJGlobal Awards, the international law firm Another landmark deal for White & Case
is gearing up to cement its position as the was the MUOA expansion financing for
market leader. Compagnie des Bauxites de Guinée. This
The independent panel of judges for the involved a 40-year tie-up between the
Africa session of the IJGlobal Awards 2020 Republic of Guinea, aluminium producer
singled out White & Case for plaudits based Alcoa, global miner Rio Tinto and alumina
on a “really interesting selection of deals”, and chemicals company Dadco and the
recognising that “getting any project finance owner and operator of a bauxite mine
done in Africa is hard, so having so many and associated rail and port complexes in
deals is impressive”. Guinea. White & Case advised the lenders
Another judge said that “White & Case – IFC, the US DFC, BNP Paribas, Credit
demonstrated a real depth of expertise Agricole, ING, Natixis and Societe Generale.
and led in complex and challenging And that’s just scratching the surface for
transactions”, while another saluted a the firm’s activity across the continent.
“significant scale of projects” including Mukund Dhar says: “We are very pleased
“complex LNG projects that are difficult to to have been awarded IJGlobal Legal
close from a legal perspective”. Adviser of the Year for Africa. We feel it
Yet another judge said: “It is clear that recognises the work that our teams from
White & Case added significant value across the globe have done involving
towards making these transactions a projects in Africa over the last year. It
success. I particularly liked the Compagnie reflects our experience and expertise, our
des Bauxites de Guinée MUOA expansion long standing commitment to the region
financing in respect of the proactive and the investments we have made into our
contribution towards incentive structures Africa practice over a number of decades.
built in to promote conservation efforts at “This recognition is important for us in that
the national park.” projects and project finance work is very
These comments from the awards judges much a part of White & Case’s DNA and we
cap off a busy year for White & Case during have always been and remain committed to
which it was the single most active legal working in emerging markets. In particular,
adviser in the IJGlobal legal adviser league the work we have done in Africa for the last
tables for Africa, securing a 17.7% market 40 plus years brings together quite nicely
share across the continent and leading its the firm’s expertise, experience and well-
closest rival by a considerable margin for earned reputation in the world of projects
deals to have made it to financial close in and infrastructure finance.
the 2020 calendar year. “Not many other firms active in Africa
White & Case success in 2020 spanned can point to a practice that is as diverse, in
multiple regions, industries, sectors and terms of transactions and geography, as the
involved a host of practice areas and offices one we have developed. Whether that be
from across the globe. oil and gas, mining, power or infrastructure;
White & Case acted for the lenders on work for sponsors, governments, lenders
the landmark Nigeria LNG Train 7 financing, or investors; activity across anglophone, "This recognition is important
a deal that brought a host of local and francophone or lusophone Africa, we have a
international banks to the table with an unique combination of capabilities that gets
for us in that projects and
ECA-backed US$3 billion multi-sourced deals done. project finance work is very
corporate financing package for the Bonny “We see a clear, sustained and growing much a part of White & Case’s
Island LNG Complex. The firm also played emphasis on projects and project finance
a pivotal role on the Atinkou deal – winning in Africa going forward,” says Mukund. “A DNA and we have always
IJGlobal Editor’s Choice Award 2020 for big part of the value we add for our clients been and remain committed to
Africa – advising its shareholder Eranove on is the support we give them – not just from
the structuring and €404 million financing London, Paris or the Middle East, but from
working in emerging markets."
of a 390MW natural gas-fired power plant on the ground. For us, these centres are

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IJGlobal Awards 2020
2020

in Johannesburg and Cairo, and we have White & Case acted for the lenders on the landmark Nigeria LNG Train 7 financing
been building capability there for years. We
reinforce our own experience with that of
leading independent law firms from across
the continent – we work regularly with them
and genuinely think of these firms as friends
and partners in delivering excellent work for
our clients.
White & Case was one of the first
international law firms to open in South
Africa and it opened an office in Cairo in
2016. The Johannesburg team has grown
in recent times with the arrival in May
of market leading debt finance partners
Lionel Shawe and Sibusiso Zungu. The two
lawyers along with their team joined from
Allen & Overy and greatly enhance White
& Case’s pan-African offering. “And our
Cairo office has also really knocked it out
of the park over the past few years – truly
impressive results given that the office
opened only in 2016,” says Mukund.

The White & Case direction


Africa remains a clear region of focus for This transition is accelerating and we are “For example, in the context of Africa, energy
White & Case and the law firm’s ambitions well placed to cater for it. transition may not be about immediately
for the region are underpinned by topping “The future is about being able to think going to renewables and battery storage
IJGlobal’s legal league tables for the about delivering transactions on multiple in every African country. It could be about
continent. levels – not just through the lens of lowering carbon emissions, moving to gas
As Mukund says: “The stand-out traditional non-recourse project finance. instead of fuel oil and coal and using gas
experience of the last few years is that And this is going to accelerate as we see as a stepping stone for creating enough
the future of projects in Africa is not all greater energy transition and different kinds on demand generation and grid stability to
about traditional project finance as it of liquidity becoming available.” support renewable generation.
was understood ten years back. We are “The notion that Africa must or will
seeing a lot more exotic funding structures, The great African transition inevitably follow a Western European or
complex capital stacks, hybrid models… White & Case has positioned itself North American model when it comes to
for us, it is important that we not only are well for a market that in coming years energy transition is not necessarily true
experts at delivering greenfield projects in will witness continued investment into for all African countries. There are different
the traditional sense – but that our clients essential infrastructure that ranges from routes that will be taken to get to the same
benefit from teams that understand and power generation through to transmission, ultimate destination.”
are able to deliver on these new atypical telecoms, transport and beyond. Mukund is also of the mind that
structures – and for this, we have people “You need to consider sometimes what facilitating this continent-wide investment
who can work with investors on the M&A the right steps are to getting to where programme can be challenging given
side, bonds, transition finance and so on. stakeholders would like to go” says Mukund. evolving legal and regulatory regimes and
market requirements for revenue certainty.
Another landmark deal for White & Case was the MUOA “You need creative thinking and innovative
expansion financing for Compagnie des Bauxites de Guinée financing and project structures as simply
defaulting to a government backstop and
complex bespoke agreements for every
single risk doesn’t always work and even
when it does, it takes years and that’s in no
one’s interests,” says Mukund. “You cannot
have the government serve as the ultimate
offtaker, supplier, credit support provider
and general all-around counterparty of last
resort for every single project.”
Mukund cites examples of projects that have
applied innovative thinking and structuring to
solve risk issues in different ways, reducing
both, the role of Government and also the
time to close and development costs.
Fortunately, White & Case is ideally
placed to help with this transition and new
and emerging models of delivering and
financing projects across Africa.

www.ijglobal.com Summer 2021


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IJGlobal Awards 2020
2020

The SMBC Interview


SMBC enjoyed an impressive 2020 calendar year working on some landmark transactions in
the Americas. Taking the pandemic in its stride, SMBC continues to be one of the dominant
players in both North America and Latin America.
SMBC globally worked on a total of 153 For SMBC, the midstream sector had a Juan (JC) Kreutz
project finance (including public-private strong start in 2020 but slowed down in the
partnerships) transactions in 2020 with a second half of the year, according to Kreutz.
total value of $153.3 billion, according to “We worked on a landmark transaction—the
IJGlobal data. Of that total, 51 transactions Whistler Pipeline transaction—the largest
valued at $45.5 billion were in North greenfield bank/bond project financing
America and 30 transactions valued at $11 on record, which reopened the private
billion were in Latin America. placement project bond market following
As a financial adviser, it participated in 7 the onset of the COVID pandemic and
transactions with a total value of $6 billion. Saudi/Russia oil dislocation.
In speaking to 2 SMBC project finance- “Elsewhere, the pandemic did hit the
focused managing directors—Juan (JC) social infrastructure team on our existing
Kreutz, co-head of structured finance for portfolio, but new transactions were still
the Americas and David Gonzalez, head fairly active. Some deals were postponed
of structured finance for Latin America—it so naturally we lost momentum, but we had
becomes clear that they are understandably enough volume to continue with day-to-day
proud of what they have achieved with their business.”
teams. Overall, it was a strong year for SMBC:
In North America, SMBC worked on some “We were trying to manage our credit costs
landmark transactions that included: at the same time but on the new-business
• Whistler Pipeline side we were expanding into the newer
• Calpine Geysers sectors like data centres and fibre, which
• Pasadena Performance Products carried us through the pandemic. Those are
• Mankato Energy what I would call pandemic resistant. The
• Renouveau La Fontaine emerging sectors are where we saw a lot of
• Pattullo Bridge our growth.”
• Boston AFC 2.0 SMBC also has a dedicated digital
• Broadway Subway Project infrastructure team that works across several
• Western Vista Solar verticals and products of corporate, project
• Capital Dynamics Kamloops finance, middle market, leasing and ABS
• Hornbaker Data Centre to focus on the data centres and fibre
business. “We are probably the only bank
Kreutz said: “2020 was a banner year for with a dedicated team that can provide
SMBC’s North American project finance multiple solutions to clients,” says Kreutz.
team. We went into the year with a lot
of uncertainty not knowing what impact LatAm Capabilities
COVID-19 would have on the business. Looking across at Latin America, SMBC
“But all sectors were still very active. is highly active in subsectors like natural
Renewables had stellar performance and resources (oil & gas and mining), power and
our volumes were up 30% compared to renewables and infrastructure (social, water,
the previous year [2019]. In addition, digital transport and telecoms).
infrastructure (fibre and data centre) activity Gonzalez said: “We closed over 30
was very strong due to that sector benefiting transactions in LatAm and mobilised one "2020 was a banner year
from the work-from-home environment.” of the largest amounts of capital in the
Kreutz added that “we supported clients region. We have strong coverage in Mexico, for SMBC’s North American
through the pandemic by closing five data Colombia, Peru, Chile and Brazil and project finance team. We
centre financings in 2020. The amount deep local knowledge of those regions.
of new build and M&A opportunities in Additionally, we are also active in Uruguay, went into the year with a lot of
renewables and data centres was at an Paraguay, Panama and some Caribbean uncertainty not knowing what
all-time high, driven by the wall of cash countries where we have sector expertise.
that’s out there from private equity and We always aim to provide tailor-made
impact COVID-19 would have
infrastructure funds that are putting money solutions to our clients, which is something on the business."
to work.” they appreciate.”

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IJGlobal Awards 2020
2020

SMBC’s activities in Latin America are infrastructure space are Mexico, Brazil and David Gonzalez
split across all the main countries, but have Chile. It’s a little less so in Colombia and
greater concentration as follows: Peru but those could pick up in the near
• Power and Renewables – active portfolio future,” says Gonzalez.
in Chile and Mexico
• Natural Resources (FPSOs) – active in Looking Ahead
Brazil and Mexico For this year and the next, SMBC will
• Infrastructure – active in Chile, Peru and continue to focus on growing the business.
Colombia with the refinancing of some “We want to make sure that we are
4G toll roads and financing of the 5G leveraging our global relationships that are
programme active in the Americas. We have sector
knowledge, but as new clients come to the
“The pandemic hit us a little, though the U.S. for new business and higher returns,
projects didn’t really stop, but continued,” we need to continue to provide seamless
says Gonzalez. Some of the key projects the solutions,” says Kreutz.
bank worked on include: SMBC is looking at new infrastructure
• Lima Airport Expansion sectors, like cold storage and street
• Buzios 5 cleaning, but as these sectors have not
• Huemul really taken off, the focus for now is to build
• Marlim 1 on growth areas like infrastructure, fibre,
• Autopista del Norte digital and district heating and warehousing
• Transantiago Electric Buses facilities around renewables.
• Tastiota “District heating has become the new hot
topic both on the M&A and P3 side, so we
“We are now focusing on energy transition are looking to grow that business. We also "We are now focusing on
as well as hydrogen transactions. SMBC want to work on more deals with an ESG energy transition as well as
Group has sustainability initiatives, Green X angle,” says Kreutz.
Globe 2030, to deploy $300 billion globally Gonzalez adds that SMBC continues
hydrogen transactions. SMBC
in green financing by 2030. LatAm and to expand its outreach and capabilities Group has sustainability
North America teams are committed to into new markets with innovative financial initiatives, Green X Globe 2030,
helping achieve that goal,” he adds. products and initiatives. “SMBC expanded
SMBC is also looking at digital its local currency lending capabilities to deploy $300 billion globally
infrastructure in the region. In 2020, it through the team in Brazil by closing in green financing by 2030.
refinanced Ascenty in Brazil, one of Latin BRL-denominated deals and utilised its
America’s largest data centre providers, non-bank arm SOFOM in Mexico to lend in LatAm and North America
with 14 data centres in operation and/ Mexican pesos.” teams are committed to
or under construction and it financed the “Latin America has huge digital
Edgeconnex expansion in Chile. “The infrastructure needs so this will continue to
helping achieve that goal."
markets most active in the digital be a focus area for us,” adds Gonzalez.

Some of the key projects the bank worked on included the Lima Airport Expansion

www.ijglobal.com Summer 2021


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IJGlobal Awards 2020
2020

The Citi Interview


Citi has been named Global Bond Arranger of the Year for 2020, in addition to winning the
respective regional awards for North America and MENA.
It is not the first time the bank has received In another noteworthy deal – Clearway Nasser Malik
high praise for its project bond business – Energy’s refinancing against its 50% interest
having previously scooped IJGlobal’s bond in a 500MW+ solar project portfolio in
arranger award for North and South America Utah – Citi introduced a first-of-a-kind solar
in 2019. revenue put for the US private placement
“The size and complexity of Citi’s deals market. The product insures investors and
merits recognition,” says one member of lenders against the risk of potential lost
IJGlobal’s esteemed independent judging revenues from the project.
panel. “Not only did Citi secure financing, Citi also structured the transaction to
but also structured precedent-making leverage merchant cash flows via a robust
innovative financial products.” analysis with respect to the balloon at
In 2020, Citi’s deal highlights ranged from maturity and PPA expiry. Proceeds were
sheer size – in the case of the nearly $8 used to repay the existing bank back-
billion debt capital raise for Galaxy Pipeline leverage facilities and to pay for swap
Assets – to deal structuring innovations breakage, transaction fees and expenses,
such as a new solar revenue put, mezzanine the put premium, and to fund a distribution
finance facilities and green bonds. The to the sponsor. The Clearway deal reflects
year also marked the bank’s continued a wider trend of sponsors utilising non-
expansion into emerging markets and new recourse financing to leverage minority and
subsectors of infrastructure. joint venture interests in contracted assets.
“Institutional investors participating in Another Citi deal from 2020 that cannot
infrastructure as an asset class has been go unmentioned is Galaxy Pipeline Assets –
the anchor on which our business has been the nearly $8 billion debt capital raise (part
built,” says Nasser Malik, Managing Director of which closed in early 2021) to refinance
at Citigroup Global Markets in New York. a consortium of infrastructure equity
“We do lend to many projects, but we investors’ acquisition of a 49% stake in Abu
have always been the house that sponsors Dhabi National Oil Company’s gas pipeline
look to for how they can effectively tap the assets.
capital markets.” “The scale of the Galaxy deal validated
2020 was a year like no other – seeing the depth of capital markets for high-quality "We do lend to many projects,
highly liquid markets contrasted with a infrastructure assets,” says David Dubin, but we have always been the
historically challenging macroeconomic Head of EMEA Project and Infrastructure
environment. Citi and its clients had to work Finance, adding that the deal also reflects
house that sponsors look to
through the volatility and uncertainty to increasing bond investor confidence in for how they can effectively tap
close deals such as the financing against non-recourse financings and infrastructure the capital markets."
John Hancock’s interest in the Exelon assets out of MENA. The deal was all the
Generation portfolio of 30 wind and solar more impressive for attracting strong bank
assets across 13 US states. appetite at the time of acquisition and the
Despite severe market volatility at the subsequent capital markets refinancing “There’s an increasing comfort in
time of the offering – the deal closed on the amidst the Covid pandemic. transactions that five years ago would have
broader market’s worst day since 2008 – the Looking ahead, as the world begins been pretty foreign to institutional investors.
transaction was over 1.5x oversubscribed to climb out of the grip of the pandemic, These are non-recourse, they are amortising,
and priced significantly inside of guidance, the view from one of the premier bond they entail thick prospectuses, they are not
enabling an upsize from the $127 million arranging banks is one of a continued sovereign or corporate transactions.”
cover size. Citi acted as sole ratings adviser, path to maturity for the infrastructure asset Malik adds: “The future is going to be
sole structuring agent and sole placement class. Malik points to growing appetite driven by equity. In the last few years, there’s
agent on the deal. for emerging markets deals as well as been a very significant rise of equity capital
“It was a year of unusual times, unusual mezzanine financings as a sign of what’s to formation and fundraising and thereby dry
markets and unusual asset classes. These come. powder in the hands of infrastructure funds.
were all variables for how 2020 came “The push for renewables and They will continue to expand their remit
together quite uniquely for Citi,” says Malik. sustainability is creating an open- and engage in more creative transactions
“Notwithstanding a short pause at the mindedness on the part of institutional alongside banks that are harnessing not
very height of Covid-19, when the world investors - you see that in mezzanine old school project finance, but rather new
just stood back, 2020 continued to see transactions and you see that in 144a school platforms on the capital markets,
very robust transaction activity in the transactions in emerging markets,” says alongside institutional investor and
infrastructure space.” Malik. infrastructure debt funds.”

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IJGlobal Awards 2020
2020

The Astris Finance interview


On time to celebrate the firm’s 20th anniversary, Astris Finance has been awarded Latin
American financial adviser of the year, for the third year in a row - and for good reason. This
boutique firm is deeply embedded in the energy and infrastructure sectors in the region,
having been active there for the last 2 decades.
Despite a challenging 2020 for the Latin Tobey Collins Despite the pandemic, challenges
America region, Astris Finance still managed on both the project execution and the
to make an impact helping clients to financing, Astris and the sponsors were able
navigate the most visible and challenging to execute the closing during construction
transactions while continuing to mobilise with an international group of lenders and
new sources of capital in the region. The advisers, a testament to the dedication and
senior management team for the Americas creativity of all parties involved.
spoke to IJGlobal about the successes The successful closing of this deal
of 2020 and what the future holds for the illustrates Astris’ expertise in working across
boutique investment bank which started complex, multi-lender and multi-sponsor
with a Latin American focus, and has environments to maximise value for project
grown into a global adviser active in the sponsors and provide enhanced liquidity for
infrastructure and energy space across the key infrastructure assets in Latin America.
Americas, Europe and South East Asia. Another great example of Astris, work
In 2020, Astris closed circa $2.3 billion of was successfully managing the closing of
financing in 11 projects in the LAC region a refinancing in Mexico despite Covid-19
alone, across different sectors such as and political uncertainties with the Mexican
transport, renewable energy and power. These "We felt we did rather well energy sector, the latter particularly adverse
transactions were successfully executed in despite the pandemic and we for private investments.
key markets in the region including Brazil, The Pemcorp refinancing in Mexico
Chile, Peru, and Mexico, as well as in niche
were fortunate that we didn’t see comprised $170 million in debt with a
countries such as Uruguay. Transactions transactions being cancelled." 7-year mini perm backed by contracted
included greenfield financings, opportunistic revenues. The 142 MW power plant (130
refinancings and mezzanine loans. Deals MW of installed capacity + a 12 MW
closed demonstrated both the difficulties An innovator battery system as a backup) sells its energy
and creativity required to create success in a Innovative deals Astris worked on included through a private PPA to an international
difficult year in Latin America and globally. designing new capital structures for an car manufacturer in the state of Nuevo
IJGlobal’s independent panel of judges expanded group of lenders in a number of Leon, Mexico. The deal was closed with
said Astris “continues to impress in terms of greenfield projects in the region. In 2020, international lenders and generated an
innovation and transaction execution”. One Astris structured and successfully closed a attractive recap for the sponsor.
judge said that Astris worked on “interesting true second-lien mezzanine financing, the Astris also worked on the closing of the
deals and structures, across sectors and Ferrocen transaction in Uruguay and also ARCO 1 portfolio refinancing (El Arrayán
challenging jurisdictions in Latin America. worked on sophisticated refinancings in - 115 MW, wind & Conejo - 122 MW,
[Astris] showcased its talents as a gifted Mexico, Chile and Peru valued at more than solar). The refinancing included 3 tranches,
financial adviser in a very demanding year”. $800 million. totalling $430 million, backed by contracted
Another judge commented: “Astris is a On the Ferrocen transaction, Astris revenues (energy sold through PPAs to
truly independent and dedicated advisory advised Grupo Via Central, a consortium Minera los Pelambres, the biggest copper
team that earns their clients’ trust. It has an owned by Sacyr, NGE, Saceem, and Berkes mine in Chile) with the surplus sold on the
impressive presence across the region. Of on the closing of a $75 million, 12-year spot market.
particular note was their role in the senior subordinated tranche with IDB Invest and The transaction combined a PPA with
and junior fund raising in the Uruguay Global Infrastructure Partners (GIP). The merchant financing in Chile backed by
greenfield railway”. term loan comprised a $7.5 million A-loan renewable assets with 6 international
Tobey Collins, managing director at Astris from IDB Invest and a $67.5 million B-loan lenders, again completed during the
said: “When we set our goals for 2020, from GIP. pandemic but still generating significant
we had no idea that the world was about The mezzanine debt was provided at value for the sponsor. It showcased the
to implode. However, we felt we did rather the project company level under a second extent of Astris’ commitment to structure
well despite the pandemic and we were lien structure, with senior (4 tranches) and deals around the challenges its clients face.
fortunate that we didn’t see transactions subordinated lenders (2 tranches) sharing Astris also structured and closed an
being cancelled, they just slowed down. In common security and collateral, a rare opportunistic refinancing for clients
particular considering the circumstances, structure for subordinated debt investments Solarpack and Ardian in Peru which added
we are very pleased with what we achieved in Latin America which are more commonly significant value for the sponsors. Three
in 2020.” placed at HoldCo level. solar projects were refinanced by a group

www.ijglobal.com Summer 2021


29
IJGlobal Awards 2020
2020

Romain Papassian world’s largest. That was an ultimate ESG Juan Francisco Toro
project because it comprised a project
that provided 100% renewable baseload
power. Astris is just continuing that work on
projects that incorporate ESG.” Collins then
points out that recently many clients are
putting together portfolio strategies where
there is a combination of wind and solar. “This
allows you to provide a better profile of energy
throughout the year because you can combine
the solar resource with the wind resource.”
In 2020, Astris was able to close several
refinancings and M&A transactions while the "This is where Astris comes in
greenfield market slowed down (traditionally
"We hope our clients see us a big market for the firm) and this focus will because we bring our experience
as true partners at the end of continue for the rest of 2021 and beyond. on working with private investors
those bumpy roads we often However Papassian says that the firm can
to obtain efficient financing for
already see that greenfield opportunities are
have to take." picking up pace across both energy and these projects."
infrastructure.
A new area of interest is digital
of international project finance banks infrastructure. However, while this is still Astris is increasing activity in North
taking full advantage of attractive market largely a growing area in Latin America, America (both US and Canada) and actively
conditions and the perceived risk reduction Astris believes that most of the transactions ramping up the team in DC to pursue
for the assets post-COVID. so far have been corporate driven which is opportunities in the US. It has also been
Romain Papassian, director at Astris, a space it does not operate in actively. “We investing in Southeast Asia for the last 4-5
commented that 2020 was a good are actively exploring ways project finance years and now has offices in Singapore
reflection of the team’s commitment to – the traditional backbone of our work -- and Ho Chi Min City. “It’s a challenging,
the region as a whole: “We are probably can be applied to the digital infrastructure new region for us, but we’ve been quite
the only independent advisory shop with space,” says Collins. successful in closing landmark transactions
a long-standing presence in the region, Another sector of interest for Astris is in Vietnam for instance, and building
where we patiently built a strong team, e-mobility, which is picking up pace in on those first closings South East Asia
thriving not only to support our clients in the region. “This is an area we want to be continues to be a big focus for us,” says
the largest economies, but also in the less more involved in, as it sits at the crossroads Papassian.
served markets where our work makes a between our long dated track record in “Our clients value the global footprint of
big impact, we believe, allowing our clients transportation in LatAm, and our expertise in Astris not so much in our ability to advise in
to close ambitious and often transformative battery-plays and storage solutions acquired different markets across the firm but in our
projects.” through our renewable energy practice”, ability to export our toolbox to new markets,
Papassian adds that Astris’ policy is to says Papassian. where our clients expect us to leave no
very much “act as a rigorous, resourceful Juan Francisco Toro, director at Astris, stones unturned to raise financing beyond
and patient partner throughout often long adds “These projects tend to be very the traditional go-to solutions. We are very
and complicated development and financing capital-intensive and while you see savings proud of the few notable firsts we closed in
processes which are known to pass by ups in the future, selling the project at the start LatAm in particular, which facilitated more
and downs in the region: we hope our clients is a little tough as governments tend to be investment in the region,” says Papassian.
see us as true partners at the end of those cautious with their scarce resources – even Going into H2 2021, Astris is confident
bumpy roads we often have to take”. without pandemic-related expenses. This is in the resilience of the pipeline of projects
where Astris comes in because we bring our across the region, in spite of increasing
Focus areas experience on working with private investors to political turbulence. Collins adds: “We
While ESG plays a big part in the way obtain efficient financing for these projects.” can’t consider ourselves as post-pandemic
investors structure projects, Astris has because many countries in the region are
been incorporating this thematic for many Global Reach still struggling with the virus, but if I look
years, as renewable energy is a core area The Latin American, Central American and to 2022, I am more optimistic that projects
of expertise of Astris, not only in LatAm but Caribbean markets have always been a – greenfield in particular – will return to a
across the world (IJGlobal’s League Tables big focus for Astris and will remain so for normal pace.”
rank Astris #2 globally in renewable energy, the foreseeable future. Astris has offices Toro adds: “We are and will remain
with 16 closings in 2020). “We know that in Mexico City, Sao Paulo, Bogota and committed to the development of the
some transactions get the ESG stamp and Washington DC, from where the Astris team infrastructure and energy markets across Latin
some don’t. But we’ve worked on numerous covers the Americas market. The other America, where we believe our positioning
renewable energy projects that incorporated key pole for Astris is in Europe where the as an independent adviser can truly make a
environmental and social benefits before it team is particularly active in the renewables difference to continue supporting our clients
became a hot topic,” says Collins. space. The firm’s European activity is in the most efficient manner across all
Collins adds: “A good example of this is handled from Paris, Madrid and Hamburg. possible sources of financing we will need
the Cerro Dominador Solar CSP project from Astris’ business is very much in expansion to mobilize to sustain the region’s path to
2018 in Chile – the region’s first, and the mode in its two core markets. full economic recovery.”

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IJGlobal Awards 2020 Winning companies

2020

Winning companies

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IJGlobal Awards 2020 Global Winners

2020

Global winners
Winners of the IJGlobal Awards in the “global category” Winners in the Global category are:
are taken from an amalgamation of the five judging • Global MLA – Societe Generale
sessions from around the world. Winners tend to have
• Global Bond Arranger – Citi
taken the trophy from at least two regional awards in their
category as well as placing highly in other regions. • Global Legal Adviserr – Milbank
These judging sessions – this year – were staged • Global Technical Adviser – Lummus
virtually for Europe and Africa, Middle East and North Consultants International
Africa, Asia Pacific, North America and South America.
Next year we intend separating the African judging
session for it to have its own group of adjudicators.
IJGlobal believes it stages the single most
transparently judged awards that are peer review and
lend them greater credibility than any other in the
international infrastructure and energy space.
Not only do we identify all the judges on our panels,
we recuse panellists – all of them established and
internationally-recognised industry figures – so that they
cannot influence judging on categories where they have
an interest.
We believe that the result of this rigorous process is
that winning an IJGlobal Award is true recognition of
industry achievements from your peers.

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IJGlobal Awards 2020 Global winners

Global MLA
Societe Generale
Having been voted winner in Asia Pacific as Allan Baker Federico Turegano – Societe Generale
well as Europe, Societe Generale won by global head for natural resources, energy
clear points against MUFG Bank to pick up and infrastructure – says: “There is huge
the international trophy for Global MLA of pride for what the teams have achieved in
the Year at IJGlobal Awards 2020. 2020. The awards you have bestowed on
Societe Generale was the clear winner us are very flattering. The amount of work
in APAC and Europe as well as scoring we were able to achieve for our clients while
consistently with the other independent working from home – dividing time between
judging panels to give it the global award work and family – has been mind-boggling.
ahead of MUFG which won for North and “It was a spectacular year for the
South America. business as far as advancing the topics of
The European judging team celebrated: renewable energy and transition from coal
“SocGen’s broad range of transactions, in to natural gas in some markets, but also on
particular in renewable energy while also the human side. I am deeply impressed by
being impressively active in digital and what was delivered in 2020 under extremely
displaying a level of involvement that comes difficult circumstances.”
across as a true MLA leader.” Allan Baker, global head of advisory and
Another judge said it was “a difficult submission showed a wide range of project finance at Societe Generale, said:
decision in a very competitive field”, projects in which they were involved.” “It has been an incredible and successful
but that “SG went ahead on account of “I too was impressed by the diversity year for Societe Generale’s energy and
involvement in a variety of sectors, and the of their portfolio,” added another APAC infrastructure teams around the world as
significant role it played”. One added that judge. “From Taiwan’s first floating solar – our focus on developing a strong integrated
Societe Generale had been involved in a the 180MW Changhua Lundong floating global presence in our core businesses has
“good selection of large-scale renewables solar PV plant – and the massive Ichthys enabled us to build on our existing strengths
and fibre transactions, delivering large LNG and Roy Hill iron mine refinancings to to really add value to our key clients on a
transactions in emerging sectors”. Taiwan’s offshore wind market and India’s wide variety of ground-breaking transactions
Meanwhile on the APAC judging team, solar portfolio financing market… SocGen as they themselves seek to push boundaries
one of the panel celebrated the diversity of had an impressive mix of markets and and move into new countries and new areas
its market involvement: “Societe Generale’s sectors.” of the clean energy and digital economy.”

Global Bond Arranger


Citi
Praise for Citi as a bond arranger was not Nasser Malik innovation and strong execution” while
in short supply among IJGlobal’s regional another who had clearly mastered the art of
judging teams as they raised a hat in salute brevity said: “Outstanding.”
to a market leader that well deserves to be Nasser Malik, head of structured debt at
recognised as IJGlobal Bond Arranger of Citi, says: “We’re honoured to be recognized
the Year 2020. again by IJGlobal for our leadership in
Among the comments gathered at the bonds and capital markets. The Global Bond
regional judging sessions held virtually Arranger and Bond Arranger of the Year for
earlier this year, Citi was singled out by both North America and MENA speak to
one judge who said its “bond franchise the work we have done over many years to
has always been very strong” and that “it is develop alternative credit markets for project
expected to dominate the market for years and infrastructure risk.”
to come”. David Dubin, head of EMEA project and
Citi’s role on greenfield as well as infrastructure finance, adds: “This leadership
brownfield financing was picked out by another pointed to “bespoke solutions is underpinned by the trust vested in us by
one judge who said: “Their involvement in developed with private credit providers”. investors and sponsors, and spans both
not only the original bond offering but also “Citi’s activity in India in corporate and developed and emerging markets, public
subsequent refinancing is impressive.” project finance stood out,” said one APAC and private markets, as well as new asset
Another adds: “The size and complexity judge. “While many of its deals across classes.
of Citi’s deals merits recognition. Not only Asia Pacific were corporate finance, the “We have further leveraged our expertise
did Citi secure financing, but also structured Tengiz and Korolev oil field refinancing in in realms such as liability management to
precedent-making innovative financial Kazakhstan showed the team’s continued create win/win scenarios where bonds are
products, such as the Solar Revenue Put.” strength in project finance.” already outstanding, but under stress from
The compliments were enough to make It kept coming. “Citi brings innovative event risks such as Covid. We look forward
a bond arranger blush with one identifying ideas to the table,” said one judge. Another to continued innovation in this space, where
“significant engagement across multiple lauded it for a “tailor-made approach to capital needs are central to economic
sectors and great placement record” while financing solutions”, yet another “impressive growth, energy transition and global health.”

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IJGlobal Awards 2020 Global winners
2020

Global Legal Adviser


Milbank
The legal sector was one of the most hotly Dan Bartfeld 446-mile natural gas pipeline in Texas.
contested categories in the 2020 IJGlobal In Mexico, Milbank advised FEL Energy
Awards with a spread of winners across the on a $953 million offering of 5.75% senior
global arena… however, Milbank winning in notes for the Tierra Mojada CCGT in Mexico.
North and South America gave the firm the It also acted as lender counsel in the $450
edge to take the international trophy. million financing to Lima Airport Partners
The independent panel of judges – all for the expansion of the Jorge Chávez
of them established industry professionals International Airport.
– identified Milbank as the winner for the Dan Bartfeld, practice group leader
Americas, with the firm also placing highly of the firm’s global project, energy and
in a couple of other regions. infrastructure finance group at Milbank, says:
The LatAm judges celebrated Milbank’s “We are honoured to be recognized as the
being “very active in the region across top-ranked Global Legal Advisory law firm
different sectors and products (loan and by IJGlobal. This is a major accomplishment
bonds)” saying the law firm took a “very for all the lawyers who are part of our global
practical approach to legal advice which is team, and also a recognition of our loyal
much appreciated by businesspeople”. clients around the world who trust us with
One rounded it off nicely, saying: “Milbank A New-York based judge said: “Milbank is their most important matters.
combines its presence in the milestone a stable, excellent, focused project finance “The success of Milbank’s energy and
capital markets transactions of the year and firm in the Americas and it closed landmark infrastructure practice is based upon
has the capability to support large-scale as transactions in a very tough year.” the success of our clients, so this award
well as smaller projects.” One of the key deals Milbank worked is as much theirs as it is ours. We take
To the north, judges hailed Milbank for on was the $875 million CPV Three Rivers great pride in our leadership position
its “strong presence”, “very strong mix of Energy Centre, a CCGT in north-eastern across all sectors and geographies, and
North American reference projects”, for Illinois – a transaction that featured a bank with combination of strong liquidity and
being “ubiquitous in the space” and having tranche, fixed-rate tranche and a private increased activity by financial and strategic
“consistent results across a variety of placement. It also acted for lenders and sponsors, we look forward to continuing to
sectors with a high degree of commitment investors on the $1.75 billion hybrid bank- advise our clients on their most important
to diversity and inclusion”. bond financing for the Whistler Pipeline, a and high-profile matters in the years ahead.”

Global Technical Adviser


Lummus Consultants International
Lummus Consultants International Susan Garven Staying in the Middle East, Lummus
performed impressively on the international also worked on the $2.25 billion
scene for technical advisory, scooping the Leviathan natural gas field bond facility as
IJGlobal Award 2020 for North America, independent engineer, building on reviews
MENA and Africa – consolidating it as the for the initial and follow-on financings for
winner of the Global Trophy. several project phases. It provided technical
The independent panels of judges risk assessments focusing on the key areas
singled out Lummus for having had a stellar of design, schedule, construction logistics,
year, identifying it as “a clear front runner regulatory issues and much more.
among the candidates” while celebrating its Lummus president Susan Garven says: “That
role on “major impact projects”. is wonderful news! Lummus Consultants is
One judge went as far as to say: honoured to be named the Global Technical
“Lummus provided independent engineer Adviser for 2020. It’s a very prestigious title,
reviews and technical due diligence on a especially in a year with such huge challenges.
wide range of projects in 2020. Of particular international award, they have to have won “To have several major financial closings
note was its role as technical adviser on the in at least two regions. Having taken the in the oil and gas sector, with projects such
Bolt Energy Storage – the LS Power lithium- award across three regions, it was a shoo-in as Mozambique LNG and Coastal GasLink
ion battery energy storage system portfolio that Lummus win the overarching prize. Pipeline, is a credit to both the lenders and
in California.” To give a flavour of the deals Lummus sponsors.
Other judges were impressed by notable Consultants worked on – more details “We are excited about continuing to
submissions, the “high quality work” it had deeper in the book – the adviser acted on participate in the successful growth of
carried out in the 2020 calendar year, and the 2.4GW Fujairah 3 CCGT in the UAE. On projects such as Bolt in energy storage,
the fact that it is a “prime player in the P3 this DBFOM transaction, Lummus provided and the growth of renewable energy around
sector”. the critical technical assessment component the world. Providing useful, knowledgeable
As with all global awards, IJGlobal of the financing through its evaluation of the expertise to our clients has always been
collates scores from across the regional industry-leading high efficiency JAC-class our number one goal, making this award
judging panels and to scoop this gas turbine technology. particularly gratifying.”

www.ijglobal.com Summer 2021


34
Deal Awards
• North America Renewables Solar deal of the year – Highlander

• North America Renewables Onshore Wind deal of the year


– Western Spirit

• North America Refinancing Renewables deal of the year


– Project Arcadia

• North America Water deal of the year – San Antonio Water


Vista Ridge P3 Refinancing

• North America Power deal of the year (US) – CPV Three Rivers
Energy Center

• North America Oil & Gas deal of the year (US) – Whistler Gas
Pipeline

• LATAM Renewables Wind deal of the year – UEP Penonome II, SA

• LATAM Refinancing Renewables deal of the year – INTI

• LATAM Power Transmission deal of the year – Alupar


Transmission Line

• LATAM Power deal of the year – EnfraGen Refinancing

• LATAM Refinancing Transport deal of the year – Project Alma

• LATAM Transport M&A deal of the year – Alto Magdalena toll


road refinancing

• LATAM Transport Airport deal of the year – Lima Airport

• European Battery Storage deal of the year – Northvolt

• European Export Finance deal of the year – Northvolt

• African Mining deal of the year – Tasiast Gold


Mine Financing

• APAC Editor’s choice as the best deal in the region


– Clifford Capital’s corporate restructuring and
ADB’s investment

• APAC Refinancing Geothermal deal of the year


– Gunung Salak-Darajat Geothermal Plant Portfolio
(550MW) Refinancing 2020

• APAC Power Coal-Fired deal of the year – Java 9


(1GW) and Java 10 (1GW) Coal-Fired Power Plants

Milbank.com
New York | Los Angeles | Washington, DC | São Paulo | Frankfurt
London | Munich | Beijing | Hong Kong | Seoul | Singapore | Tokyo
IJGlobal Awards 2020 Europe winning companies

2020

Europe winners
The Company section of the IJGlobal Winners in the Europe companies category are:
Awards 2020 was particularly • European financial adviser of the year – BNP Paribas
challenging this year for Europe given
• European legal adviser of the year – Herbert Smith Freehills
an alarming uptick in submissions on
previous years. • European MLA of the year – Societe Generale
However, the judging panel • European technical adviser of the year – Arup
waded through them and gave their • European sponsor of the year – SSE
experienced opinion to provide us with
• European model auditor of the year – BDO
an excellent array of winners.
The coming pages are devoted to • European investor of the year – Allianz Global Investors
the victorious organisations who were • European bond arranger of the year – Santander
active across European infrastructure • European public sector award of the year – Entwicklungsagentur Region
and energy deals that closed in the Heide AöR, Germany
2020 calendar year.
• European corporate trust if the year – Deutsche Bank Corporate Trust
Congratulations to all winners… • European ESG coordinator of the year – Vauban Infrastructure Partners
• European credit insurer of the year – Assured Guaranty

www.ijglobal.com Summer 2021


36
IJGlobal Awards 2020 Europe
2020

European financial adviser of the European legal adviser of the year European MLA of the year
year – BNP Paribas Herbert Smith Freehills Societe Generale
The financial advisory award for Europe was Societe Generale won against considerable
won by BNP Paribas with the judging panel competition to scoop the IJGlobal MLA of
full of praise for its performance over the last the Year Award for Europe having closed an
calendar year. The IJGlobal legal award is one of the most impressive array of deals across the region
One judge identified BNP’s involvement in vigorously contested in each of the regions in the 2020 calendar year.
Northvolt (winner of a couple of awards) as and one of the hardest to judge, making One of the judges admitted that it was
“very innovative” while another celebrated its them one of the most prestigious to win – challenging to identify a stand-out winner
“very strong number of projects, and focus given the amount of competition they face given the level of competition, saying it was
on renewables”, with one more saying: from an impressive peer group. “a difficult decision in a very competitive field”
“BNPP had a strong mix of deals, with some Herbert Smith Freehills won over the but adding: “SG went ahead on account of its
extremely high profile / jumbo transactions independent judging panel to scoop IJGlobal involvement in a variety of sectors.”
in the mix.” Legal Adviser of the Year for Europe with Another identified Societe Generale as
And, while it should not be included one lauding HSF’s 2020 calendar year the winner for having worked on a “good
as awards are judged purely based on performance as an “impressive diversified selection of large-scale renewables and
submissions, but one judge said: “Having portfolio of successful deals”. fibre transactions while also delivering large
been on the receiving end of BNPP as One of the judges said: “HSF had a transactions in emerging sectors”. This
a financial adviser, they are far stronger strong year and closed some interesting view was supported by a judge adding the
than most of their peers – certainly in the deals which made them the top choice for lender had an “impressive list of projects
banking suite – and are starting to compete me. The firm had a good mix of traditional and strong focus on green projects.”
with the boutiques and specialist advisers.” infra and transition transactions with the BP Yet another commented: “SocGen’s
BNP Paribas’ energy, resources and Equinor deal – a key strategic step for BP – broad range of transactions – in particular
infrastructure teams in 2020 advised and an interesting interconnector.” renewables and digital – and level of
on numerous renewables transactions, Another added: “HSF stood out in a very involvement marks it out as a true MLA
notably Dogger Bank A&B in the UK – competitive category as a law firm with a leader.”
at 2.4GW, the biggest project financed great variety of transactions and multiple Societe Generale worked on numerous
offshore wind project in the world – that sectors and geographies. The submission landmark deals that feature in later pages
is currently being developed by SSE and clearly set out the key challenges and how having played pivotal roles on the likes
Equinor. The advisory team supported HSF worked with clients to resolve those to of Northvolt, Fécamp offshore wind farm,
the sponsors from May 2018 in securing deliver successful projects.” Dogger Bank A&B… and many more.
62% of total capacity awarded CfDs in the Gavin Williams, HSF global co-head of Allan Baker, global head of advisory
2019 AR3 competitive auction based on infrastructure, says: “The last year has been and project finance at Societe Generale
the lowest subsidy levels achieved in the exceptional for our clients and our teams as it Corporate & Investment Bank, said: “This
UK to date. has been for everyone around the world. We was a year marked by strong deal flow,
The team also advised on Fécamp, found ourselves kept exceptionally busy by but also significant competition in the
the largest underwritten transaction in project sponsor and investor clients alike. The lending space, so we are very happy to be
the power sector in France, which was pandemic, climate change and digitalisation recognised as the leading MLA in Europe,
underwritten during lockdown in spring. were to the fore in every conversation. reflecting the strong contribution of all of
This 497MW project is being developed by “Our teams continued to support clients with Societe Generale’s sector teams.
EDF Renouvelables, WPD and Enbridge. their major projects – including HS2, Hinkley “We are very proud to have delivered many
Syndication launched post-closing, with Point C and Sizewell C – adapting to the innovative financing solutions to our clients
a successful result achieved in early changing development environment brought across Europe, whether in clean energy with
September. about by the response to the coronavirus. In offshore wind underwriting and innovative
When approaching energy transition, the PPP space we worked on several high- geothermal and PPA-backed deals.”
BNPP was active in supporting innovation, profile portfolio trades as well as the A465 He added: “In the infrastructure business,
advising Northvolt for the unprecedented project which was structured under the SG has consolidated its position as a leader
non-recourse financing of the construction latest evolution of the PPP model in the UK. in the digital transformation space and in
of one of the largest greenfield battery “On the capital formation front, clients particular fibre networks – we closed deals
manufacturing plants in Europe (16GWh). have been particularly active raising in France, Italy, Germany and the UK as
Romain Talagrand, EMEA head of power funds focused on energy transition and well as underwriting an unprecedented
and renewables and BNP Paribas, said: digitalisation in one form or another. Our transaction in France or the industrial sector
“Opening up France to offshore wind, funds team has been involved in several with the closing of the ground-breaking
raising debt for the largest ever renewable listed vehicles in infra and renewables and Northvolt Gigafactory, a first for Europe.
energy project and devising innovative on the closed-ended side we continue “This success underlines Societe
deals like Europe’s first battery gigafactory to see a growing number of continuation Generale’s drive to innovate and deploy our
all show our determination to help drive vehicles being brought into play around balance sheet in support of core clients
forward the energy transition in Europe.” certain types of assets.” across all sectors.”

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37
IJGlobal Awards 2020 Europe

European technical adviser of the year


Arup
Over the course of the judging period, Arup both private and government clients on buses and bus depot charging. The equity
worked on an array of transactions to win a plethora of ground-breaking projects, funding is to support the growth pipeline
the IJGlobal technical adviser award for its including advising government bodies decarbonising transport in the UK and
activity across Europe which saw the team on the nuclear newbuild programme abroad.
fully deployed. and worked closely with the Low Carbon Filippo Gaddo, Arup’s London-based
Arup’s teams of engineers, economists, Contract Company, providing technical business and investor advisory leader,
management consultants and transaction advice and ongoing schedule analysis says: “A global pandemic and the transition
specialists were active across all on Hinkley Point C – the largest power to net zero are re-shaping the transaction
infrastructure markets including transport, generation construction project in Europe. market. More and more projects and deals
power, renewables, digital, waste, water and In Arup’s submission, it highlights in 2020 and 2021 are in renewables, low
utility networks, social infrastructure and far-reaching involvement with European carbon transport, energy storage and
energy transition. developer Mainstream Renewable Power hydrogen.
A great example of its integrated advisory during the sale process of a majority stake “The role of technical adviser is also
approach is the recently-announced in the company. It was also technical changing. Clients need integrated support
sale of Western Power Distribution (the adviser on Northvolt’s first lithium-ion EV that brings together engineering, economic
largest UK NDO) to National Grid where battery manufacturing facility in the north of and financial expertise. That is where
Arup supported the process by providing Sweden. Arup’s team excels as demonstrated in the
integrated regulatory, economic, and Arup also played a key role in Northvolt, Mainstream and Zenobe deals.
technical vendor due diligence to PPL Infracapital’s acquisition of Zenobe Energy The IJGlobal awards are a welcome and
Corporation. in November, a deal that will see it invest fantastic recognition of our leadership and
Arup provided technical advice to £150 million equity in grid battery, electric ground-breaking role.”

Shaping a net zero future


From renewable energy business models to transaction advice,
Arup is at the heart of shaping the energy transition.

arup.com

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IJGlobal Awards 2020 Europe
2020

European sponsor of the year European model auditor of the European investor of the year
SSE year – BDO Allianz Global Investors
Project sponsors – the ones who really drive Model audit is often the unsung hero of The 2020 award for European investor
activity across the market – tend to be fairly many a project finance transaction… but goes to Allianz Global Investors with the
laissez-faire about submitting for awards. not at IJGlobal where each year we single independent panel of judges selecting
Possibly they have other things to do… but out the best performer, chosen by our it over the shortlisted rivals based on an
that doesn’t stop IJGlobal from creating its independent panel of judges and based impressive year of activity.
own category to celebrate their successes. purely on submissions. One of the judges at the European
This year, the IJ editorial team pulled This year the winner for Europe is BDO virtual judging session said of AllianzGI
together a shortlist of truly impressive and the judges singled it out for praise that it displayed “significant references
sponsors to put in front of our judges to saying it was “a solid choice” and that for 2020 and had some interesting deals
identify the most impressive with an eye to it “showed a real understanding of the that sets them apart… deals like battery
winning the IJGlobal European Sponsor of transactions as well as range and scope”. trains”.
the Year Award 2020. Another celebrated it for having an Another judge celebrated “a good mix
Judges pored over the submissions and “interesting range of projects” and had of transactions” while one more saluted
finally chose SSE as the worthy winner with shown “innovation in the Northvolt deal AllianzGI for “innovation and challenges
one saying it “deserves recognition for the which gives them the advantage”. faced, such as Covid-19 impact on the A88”
very impressive Seagreen project”. Two judges were won over by BDO’s and another pointed out “the XMU example
Other judges added that SSE’s “move submission which was described as is also a good one in promotion of green
towards renewable energy projects is so being a “very comprehensive submission, agenda”.
important that it should be rewarded” and demonstrating a real understanding of the The final judge comment was: “While a
another said it was a “strong sponsor challenges involved with the showcased mid-market player, clearly they have their
transitioning to renewable energy” with transactions” and the other adding it was “a eye on where the market for Core+ and
“interesting and topical transactions”. most impressive submission, demonstrating Core++ is moving to.”
SSE has a portfolio of around 4GW of they understand more than their immediate One deal that caught judges’ eyes was
onshore wind, offshore wind and hydro, role and were fully on top of the transactions Project Pelayo which involved the financing
and its strategy is to drive the transition they were involved in”. of a 42MW portfolio of 14 Spanish PV solar
to a net zero world through world-class Among the many transactions BDO parks that have been operational since
development, construction and operation of worked on across Europe, it is notable for 2008-12.
renewable energy assets. having advised on a slew of the deals to Having financed the initial portfolio
The organisation aims to treble its have won awards in the coming pages. back in 2017 when it was nine-strong, in
renewable energy output from 2019 levels For just a taster, BDO acted as model December 2020 the financing package was
to 30TWh by 2030, making a significant auditor on the A465 which saw the first enlarged and amended to refinance project-
contribution to decarbonising the power deployment of the MIM procurement model specific bank debt at the five plants that
sector and achieving net zero emissions by in Wales; the landmark Northvolt lithium-ion have since been added.
2050. battery manufacturing financing in Sweden; XMU also elicited comment given the
SSE owns nearly 2GW of operational and the G.Network acquisition which gives assets being financed were 55 battery-
onshore wind capacity with more than 1GW it exposure to the burgeoning fibre optic electric-powered trains to be operated in
currently under development. Its 1,459MW space. the State of Schleswig Holstein in northern
hydro portfolio includes 300MW of pumped Kirit Mistry – partner and head of model Germany. The borrower will purchase the
storage and 750MW of flexible hydro. assurance, financial services for project trains throughout a 4-year construction
Meanwhile its operational offshore wind finance at BDO – says: “It is a great honour period and the trains are then leased to
portfolio consists of 579MW across three that the quality of our model assurance several train operating companies to operate
offshore sites in UK waters, two of which it work has been recognised across a for at least 28 years.
operates on behalf of joint venture partners. number of regions and in particular, our Claus Fintzen, chief investment officer
It was deemed worthy of the award experience and understanding of complex for the infrastructure debt team at AllianzGI,
primarily based on the 1.14GW Seagreen project financings and related modelling said: “We are delighted to be named
Alpha and Bravo Offshore Wind Farms issues and risks, which has helped us as European Investor of the Year. While
which reached financial close in early June provide the necessary assurance to senior 2020 was a challenging year for us all,
2020. lenders, sponsors and investors over many the structure and broad set-up of our
Not only did it reach financial close years. platform meant we were well equipped to
between two peaks of Covid-19 cases in “The experience, commerciality and support deals across various risk categories
the UK, only 42% of the energy generated pragmatism of our dedicated team – including XMU and A88.
at the wind farms has been awarded combined with our ability to provide “This year, we see sustainability and
subsidies. As a result of this uncertainty, specialist local input with the global reach balance sheet repair following the pandemic
the gearing was skewed to be heavily of BDO’s international network – allows us as the key topics and remain sharply
ECA-backed with bank debt only covering to support the most complex, high value focused on where the market is moving,
the secured contracted revenue and equity and strategically-important project finance ultimately cementing AllianzGI as a force to
footing 58% of the bill. deals.” be reckoned with in the market.”

www.ijglobal.com Summer 2021


39
IJGlobal Awards 2020 Europe
2020

European bond arranger of the year


Santander
A strong – if Spain-dominated – submission of infrastructure bonds has come into
from Santander saw the institution win the its own during the volatility of the global
European bond arranger of the year award pandemic. We have seen the full range
with the full support of the independent of deals: project bonds (Q-energy and
judging team. Eolia), corporate bonds (Thames Water,
The judges selected Santander “based Heathrow) and even subordinated HoldCo
on the complexity of transactions brought to bonds (Gatwick). Santander expects
market in the current environment” adding this market to grow rapidly in the next
that they were “not easy transactions”. few years, as government and private
One judge said that Santander investment in transport and in green
“demonstrated presence in the market with energy help the global economy to build
a range of active roles on deals, well above back better.”
other contenders” while another pointed out Ben Felix, global head of structured
that all deals in the submission we Spanish, finance at Santander CIB, said:
but “each transaction had its own unique “Santander’s unprecedented position in the
challenges, and in each deal Santander had Spanish renewables market, combined with
a substantial role to play in its success”. top-house credentials in DCM in Europe
In its submission, Santander identified make of Santander a natural candidate for
three transactions from the 2020 calendar leading the niche market of the Spanish
year that it felt demonstrated its skills and Renewables PF bonds market. Since
exemplified the lender’s achievements. 2015, Santander has been leading and
It led with the €575 million public structuring all the issuances in the country,
bond refi of Empark to fund a dividend bringing innovation, complexity and “Santander demonstrated
recapitalisation, the €450 million refi of a ultimately new institutional investors into
Spanish solar portfolio, and the Q-Energy the field, who, combined with a very liquid presence in the market with a
bond issuance refinancing solar assets bank market, will be essential for financing range of active roles on deals,
with an Assured Guaranty wrap. Conor the coming wave of green investments in
Hennebry, global head of DCM for the country and more generally in Europe
well above other contenders.”
SCIB, said: “The stable revenue profile and globally.”

European public sector award of the year


Entwicklungsagentur Region Heide AöR, Germany

The IJGlobal Public Sector Awards prove to knowledge – thus potentially allowing a
be an annual chore for the IJ team as we multiplier effect on future transactions.”
tend to write these ourselves… because Another judge identified the development
rarely people put forward such bodies agency as providing “an example of where
(basically, not themselves) for plaudits. public sector support is really necessary
For this year, the IJGlobal editorial team to kick start a new sector” with another
identified a number of European public bodies adding that “the complexity of this project
that we believe delivered interesting agendas, and the number of JV partners to get this
judging them not on deals closed rather the done is impressive”. It was also billed as “an
potential they are bringing to the market. important test bed”.
Once the judges had altered their stance This was joined by comments from
from making decisions based purely on a judge who was “impressed by the
closed deals from the 2020 calendar year, innovation of the hydrogen project” saying
they warmed to the subject and threw it was an “interesting and challenging
their (almost unanimous) weight behind pathfinder project for green hydrogen which
Entwicklungsagentur Region Heide AöR in may form a model for other developments”.
Germany. in making progress towards the green The Westküste100 offshore wind-to-green
Their choice was based entirely on agenda. This pathfinder project, while small, hydrogen project in Schleswig-Holstein,
the sterling work the public body had is a giant step – in some ways – toward northern Germany, was the first green
done to drive the adoption of hydrogen in showcasing the challenges of hydrogen hydrogen project to secure financial backing
Germany alongside the creation of a hub to transactions and what is needed to from the German government. The project’s
encourage its proliferation. overcome them.” JV H2 Westküste has a 5-year mission
One of the judges said: “Hydrogen is A judge added: “Involving a large number to build a 30MW electrolysis plant at the
the newest sector with significant promise of institutions in the deal gives market regional refinery Raffinerie Heide.

www.ijglobal.com Summer 2021


40
IJGlobal Awards 2020 Europe
2020

European ESG coordinator of the year


Vauban Infrastructure Partners
This is the final time IJGlobal Awards will shown remarkable results in 2020 with its As to gender parity and diversity,
present this award – we are launching a investments allowing 2,000 hospital beds Vauban is led by a female chief executive
dedicated event to celebrate achievements to be equipped; 3,500 trees to be planted; – Gwenola Chambon – who is a renowned
in the ESG space – and we are delighted to and 14 tonnes of CO2 EQ per million Euros champion in the ESG space, and the fund
announce that Vauban Infrastructure is our invested to be avoided. itself has achieved 60:40 gender parity at all
2020 winner. The fund manager was a pioneer the levels of organisation.
This is an editorial award based on implementing innovative “green” financing In daily business, Vauban demonstrates
an impressive submission that identifies to its portfolio companies. One of these its methodology by evaluating SDG-related
Vauban as a front-runner and pioneer achievements was to sign the first risks and opportunities required at each
of promoting ESG practices across the sustainable loan of a 30-year public service investment phase; sets annual reviews of
infrastructure industry and asset class in delegation contract for the deployment and assets with KPIs; has in place a review
general. operation of the Loire Atlantique’s fibre optic process throughout the investment lifetime
Vauban was a founding member of network. with continuously updated targets; and
GRESB Infrastructure – the only fund Vauban also signed France’s first many more KPIs to ensure ESG results.
manager alongside institutional investors sustainability-linked equity bridge facility According to its submission: “Vauban is
– and in 2020 further promoted GRESB for its Core Infrastructure Fund III, through taking powerful actions in order to make an
reporting (therefore benchmarking) and which it committed to three ESG KPIs to impact. Vauban is a signatory of UN PRI with
implemented concrete measures across reinforce the manager’s commitment to A+ score (highest score possible) for 2020
the industry and its players. Under Vauban’s promoting SDGs across its underlying in all the applicable categories (infrastructure
stewardship, its portfolio companies have investments. and strategy and governance).”

CONNECTING COMMUNITIES
THROUGH FIBRE OPTIC NETWORKS

_____ By combining a sense of anticipation and multidisciplinary


expertise, Vauban IP seizes opportunities for innovation in the
digital sector at a very early stage. We are thus deploying the
© iStock -

fibre optic networks, essential for the reduction of the digital


divide in Europe and the development of connected cities. __ •

Transport I Social infrastructure I Utilities I Digital infrastructure Vauban-ip.com

www.ijglobal.com Summer 2021


41
IJGlobal Awards 2020 Europe
2020

European corporate trust of the year


Deutsche Bank Corporate Trust
The winner of the IJGlobal editorial award
for European corporate trust of the year
for activity in the 2020 calendar year is…
Deutsche Bank Corporate Trust.
Deutsche Bank’s corporate trust
team had a busy 2020, supporting 51
transactions valued at more than $20 billion
of project and infrastructure financing; 66
deals for close to $83 billion of corporate
debt issuances across the energy and
infrastructure sectors; and serviced clients
and projects in 12 different countries across
the Americas, EMEA and APAC. In 2020, the global team provided services a Covid-19 dossier website, and a new
In Europe, Deutsche Bank covers the full to Canada-based investors extending their sustainable finance website with insights
spectrum of assets from renewable energy, footprint in the North European offshore and solutions for participants seeking
power, transport, oil and gas, telecoms, and wind sector and to a Dubai-based solar to develop and invest in sustainable
water and waste sectors; with an added developer investing in Africa. infrastructure.”
focus on sustainable financing. According to the submission: “The “Winning the Corporate Trust Provider of
Many of the financings were landmark Deutsche Bank Corporate Trust team the Year in Europe award for the second
deals spanning diverse asset classes continues to leverage the strengths of the year in a row is an achievement that makes
including a green bond refinancing of entire bank-wide franchise when supporting us very proud. We have supported a wide
Germany’s largest offshore wind project transactions through an ever evolving capital range of renewable projects in the region
where the North Sea assets were combined markets landscape. in 2020. This includes a European off-shore
in a single project under one project bond; “For example, it has collaborated with wind green bond refinancing for Germany’s
and the development of one of Spain’s multiple divisions in the bank to distribute largest offshore wind power plant. We look
largest solar energy projects. thought leadership insights to clients via forward to working on similar sustainability-
Globally, Corporate Trust supports a various channels. These include a weekly linked transactions in the future,” says Jason
growing number of investors and sponsors macro-economic analysis of the Deutsche Connery, Head of Trust & Agency Services,
who are looking for cross-border projects. Bank research team’s published reports, EMEA.

European credit insurer of the year


Assured Guaranty
Many people viewing this category will be that involves the refurbishment of existing during 2020 to firmly re-establish its
scoffing as they read it, crying out that it halls of residence and a limited new-build of position as a competitive and mainstream
was a one-horse race and that Assured additional rooms. financing option in the infra world. Our
Guaranty was the only monoline that could Its wrapped financing solution, providing highlights for the year included significant
have scooped the trophy. long maturities (35 years in this instance), a activity in the solar sector where we
However, we at IJGlobal took the view higher credit rating, and associated capital refinanced three separate transactions in
that Assured Guaranty’s activity over the charge reduction, proved popular with direct Spain with an aggregate funding amount
course of 2020 had been so impressive that lenders and bond purchasers. of over $1 billion.
it warranted celebration and to receive an Assured Guaranty (Europe) then July “We also provided the financing solution
award for its numerous accomplishments. (2020) provided financial guarantees for for Kingston University’s project involving
To that end, we are delighted to €326 million of notes (due 2037) issued new and refurbished accommodation, a
announce Assured Guaranty as European by Hypersol Solar to refinance two adjacent great transaction that was closed during
Credit Insurer of the Year 2020 having 50MW CSP plants in Spain. This was Assured the uncertainties of the pandemic.
performed magnificently during the judging Guaranty’s fifth Spanish solar transaction “In addition, Assured Guaranty closed
period, bringing monoline wraps back to the benefiting from payments from the Spanish a number of other transactions in the
market in a significant way from the all-time Electricity System, and its first involving secondary market, i.e. where AG provides
low of 2008. concentrated solar power technology. credit protection to both institutional
This is an editorial award – a salute from A final key deal it closed was when Qualitas investors and banks on bonds or loans
IJGlobal – for a job well done in a year that Energy mandated AG to act as financial they already own.
saw AG work on a range of interesting deals guarantor on the refinancing of Project “It was an interesting year with the
where they brought the combined might of Tesler. This project represents the third PV onset of the pandemic, but the current
Assured Guaranty to bear across Europe. portfolio financing with Qualitas Energy to be environment has demonstrated the value
Primary among these is the Kingston guaranteed by AG, all of them in Spain. to investors of having credit protection on
University student accommodation project Dominic Nathan, managing director, bonds and loans. We are delighted to be
that saw the monoline provide a senior Assured Guaranty, said: “Assured Guaranty the recipient of European Credit Insurer of
funding solution for a demand-based project enjoyed another great year of growth the Year!”

www.ijglobal.com Summer 2021


42
IJGlobal Awards 2020 North America winning companies

2020

North America
winners
The North American judging panel had Winners in the North America companies category are:
its work cut out for it, working its way • North American bond arranger of the year – Citigroup
through a mass of submissions from
• North American corporate trust of the year – Deutsche Bank
those organisations that closed deals in
the 2020 calendar year. • North American financial adviser of the year – Macquarie
This year IJGlobal was impressed • North American insurance adviser of the year – INTECH Risk Management
with the amount of submissions – the • North American investor of the year – Quinbrook
largest entry level we have achieved
• North American legal adviser of the year, energy – Milbank
for many years thanks to ramped up
marketing. • North American Company legal adviser of the year, infrastructure – Torys
The following pages are dedicated • North American MLA of the year – MUFG
to those winners and we would like to • North American model auditor of the year – Operis
take this opportunity to congratulate
• North American public sector award – City of Edmonton
them for their successes.
• North American ratings agency of the year – Fitch Ratings
• North American sponsor of the year – Plenary Americas
• North American technical adviser of the year – Lummus Consultants
International

www.ijglobal.com Summer 2021


43
IJGlobal Awards 2020 North America
2020

North American bond arranger of the year


Citigroup
For the second year running, Citi has
scooped IJGlobal’s North American bond
arranger of the year award for 2020.
When it comes to bond financing of
infrastructure and energy across the
Americas, the IJGlobal judging team voted
emphatically that none did it better in 2020
than Citi. One judge said “the size and
complexity of Citi’s deals merits recognition.
Not only did Citi secure financing, but also
structured precedent-making innovative
financial products, such as the Solar
Revenue Put”. Another judge said that Citi
always brings “innovative ideas to the table” this insurance product that gives investors important private capital universe. The
and that its inclusion of green bonds was and lenders additional comfort that any subordinated tranche was placed with
“very effective in a tough year”. lost revenues stemming from reduced private capital accounts, highlighting how
One judge added: “Citi led the field as production are recuperated. The use of Citi’s ongoing investor dialogue allows
the bond arranger for many high-profile the Solar Revenue Put, combined with the firm to optimise debt structures with
infrastructure deals in 2020, however, what additional debt sized on a merchant tail, bespoke solutions.
distinguished them from others in this field demonstrated Citi’s ability to market novel Addtionally, Citi announced the issuance
was their commitment to innovation. While renewable transactions. of the firm’s first USD-denominated
the size and complexity of Citi’s deals merit Citi also executed a $125 million unrated, benchmark green bond to fund renewable
recognition, Citi went beyond arranging subordinated mezzanine tranche to help energy, sustainable transport, water quality
bond financing to also structure precedent- optimise Orion Mine Finance’s cost of and conservation, energy efficiency and
making innovative financial products, such capital, create financial flexibility, and green building projects. The issuance, along
as the Solar Revenue Put”. provide certainty of funds for its acquisition. with Citi’s project and infrastructure finance
The use of Solar Revenue Put, highlighted As a mezzanine note with a residual interest team’s green lending activities, reaffirmed
on numerous occasions by judges was in Trona royalties, this transaction brought Citi’s commitment to environmental finance
used on Utah Solar, the first USPP to feature a unique asset class to the increasingly and sustainable transactions.

North American corporate trust of the year


Deutsche Bank

In the Americas, Deutsche Bank Corporate


Trust provided services to projects worth
$6.8 billion, serving sponsors from 8 “We are proud that the ground-breaking work we completed in
countries with projects covering the full the Americas stood out in 2020. Many of the financings were
spectrum of assets from renewable energy,
power, transport, midstream oil & gas,
landmark deals spanning diverse asset classes including solar,
telecoms, and water and waste sectors. To wind energy and hydroelectric projects; water desalination
top it all off, there was also an added focus plants; public schools, and telecom.”
on sustainable financing, keeping Deutsche
Bank at the top of the IJGlobal ranking for
corporate trust adviser.
The judging panel said Deutsche Bank
was a “clear winner in this category” and Many of the financings that Deutsche Thalia Delahayes, head of project finance
that working on the “first sustainability bond Bank worked on were landmark deals agency, Americas at Deutsche Bank, said:
made them a head and shoulders winner”. spanning diverse asset classes including “We are proud that the ground-breaking work
One judge commented: “Deutsche Bank’s solar, wind energy and hydroelectric we completed in the Americas stood out in
projects covered the full spectrum of assets projects; water desalination plants; public 2020. Many of the financings were landmark
with many of the financings being landmark schools, stadiums and a satellite. deals spanning diverse asset classes
deals. The diversity of asset classes, The team also provided agency services including solar, wind energy and hydroelectric
coupled with innovative, first-of-their-kind to North America’s first sustainability-linked projects; water desalination plants; public
deal structures, made them the standout bond (SLB), NRG Energy’s issuance of $900 schools, and telecom. With an added focus
corporate trust in 2020”. Another judge said million in senior secured first lien notes, on sustainable financing, the team notably
the corporate trust adviser played a “notable and the first issued by any energy company provided agency services to North America’s
role in ESG in 2020”. outside of Europe. first sustainability-linked bond issuance.”

www.ijglobal.com Summer 2021


44
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IJGlobal Awards 2020 North America

North American financial adviser of the year


Macquarie
Macquarie was selected by IJGlobal’s Capital served as exclusive financial adviser
independent panel of judges as the winner to First Sentier Investors to acquire a 40% An excellent submission
of the North American financial adviser stake in Terra-Gen from ECP. Terra-Gen’s
of the year for its market-leading advisory portfolio spans more than 30 facilities
clearly setting out the key
business which has an unparalleled client located primarily in California, with additional transactions, their challenges,
network and global reach across multiple locations in Colorado, Minnesota, Nevada, unique aspects and complexity
sectors and regions. New York, Texas and Wyoming. The
Judges said Macquarie “continued to company currently operates more than of the funding structure.
pave the way for global advisory in the 1,600MW of facilities and has more than
infra universe” and that it is an “established 3,000MW of projects under advanced
market leader”. One judge said: “Macquarie development. The TerraGen deal was signed wealth, pension and insurance funds across
had a strong position in secondary markets amidst significant economic uncertainty all parts of the region.
advisory - benefitting from its funds/advisory and financing market dislocation, requiring “We are delighted to be recognized
approach”. substantial short-term capital needs. as the leading infrastructure and energy
A notable transaction Macquarie Capital Looking ahead, Macquarie Capital adviser in North America in 2020,” said
worked on was acting as exclusive financial continues to monitor trends that emerged Robert Valentine, senior managing director
adviser to Macquarie Infrastructure and in 2020 including a continued inflow of at Macquarie Capital. “We were so pleased
Real Assets (MIRA) on the sale of WCA capital into Europe and North America from to have helped so many of our infrastructure
to GFL Environmental. Macquarie Capital international investors and the broadening of clients achieve their objectives in 2020,
ran a highly competitive process for the the definition of infrastructure. The business in buying, selling and financing assets to
sellers despite the pandemic. Another deal will continue to serve the broad spectrum of deliver returns to their investors, pension
it advised on was Terra-Gen. Macquarie infrastructure investors from funds, sovereign holders and stakeholders.”

Infrastructure and energy


expertise for a connected
and sustainable future
Macquarie Capital has been at the forefront
of industry innovation as an adviser, investor
and developer, for more than 25 years.

Alongside our clients and partners, we create


sustainable and resilient assets that power, move
and connect communities around the world.

Find out more at macquarie.com/macquariecapital

The information contained in this document is for general information purposes only. This document shall not be construed as an offer, invitation or solicitation to buy
or sell any security or product or to engage in any investment or advisory activity. None of the entities noted in this document are authorised deposit-taking institutions
for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank
Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of these entities.

www.ijglobal.com Summer 2021


46
IJGlobal Awards 2020 North America

North American investor of the year


Quinbrook Infrastructure Partners
Quinbrook Infrastructure Partners scooped Notable investments in 2020 included
investor of the year in North America “Quinbrook’s diverse portfolio the $1.1 billion, 690MW Gemini Solar +
due to its impressive investments in new Battery Storage project, which is currently
infrastructure assets and delivery of direct of cutting-edge technology the largest solar project in US history once
and measurable ESG impact on behalf of its investments puts it at the constructed and at 1480MWh, includes one
investors. of the largest battery storage assets in the
An independent panel of judges lauded
forefront of the accelerating world.
Quinbrook’s “impressive portfolio of energy transition to achieve The Rowan Green Data is another
innovative green energy and data projects, ‘Net Zero’ emissions from the impressive deal that Quinbrook worked on.
demonstrating leadership in what can only The investor formed a joint venture entity
be significant growth areas” and its “clear US energy supply system.” with Birch Infrastructure (Rowan) to develop
and concise examples of sustainable and commission mission critical, hyper-
investments”. One judge said: “Quinbrook’s scale data centres that take advantage of
diverse portfolio of cutting-edge technology low-cost renewable power.
investments puts it at the forefront of the and brownfield’ investing requiring deep Additionally, Glidepath Power Solutions
accelerating energy transition to achieve involvement in project development, - a portfolio company of Quinbrook - saw
‘Net Zero’ emissions from the US energy project permitting, equipment procurement, Glidepath announce that it would complete
supply system”. construction and operations. development and achieve construction
A Quinbrook hallmark is an early stage Quinbrook continues to develop and readiness in 2020 on one of the largest
model where the investment team is construct solar PV, onshore wind, battery portfolios of standalone battery storage
integrally involved in ‘hands on’ ‘greenfield storage and green data across the US. projects to date in New York State.

North American legal adviser of the year, energy


Milbank

North American legal adviser of the year,


energy was a hotly contested category
with judges debating long and hard over
the winner. Milbank emerged as the victor,
recognised for its consistent work across all
industries in North America where project
financings occur.
It had an impressive 2020 calendar year,
working on 100 transactions totalling billions
of dollars. In North America, it advised on
the most innovative and ‘first of its kind’
deals to come to market.
IJGlobal’s independent panel of judges
said Milbank provided “consistent results
across a variety of sectors with a high
degree of commitment to diversity and
inclusion”. One judge commented that
Milbank was “ubiquitous in the space” and
another said it worked on “landmark deals
in a very tough year for three very difficult
projects”. Another key deal for the firm was the constantly sharing market intelligence, best
Some of the key deals Milbank worked Highlander Solar Project, a 485MW utility practices and transaction updates.
on were the $875 million CPV Three Rivers scale solar project in Virginia. Milbank “Also, the 15+ partners in our Americas
Energy Centre, a gas-fired combined cycle represented the lenders. energy/infrastructure group are virtually
power generation facility in north-eastern Dan Bartfeld, practice group leader all Milbank ‘lifers’, so we know each other
Illinois. The transaction featured a bank of the firm’s global project, energy and very well and we have put huge effort into
tranche, fixed rate tranche and a private infrastructure finance group, said: “We take ensuring the success of the entire group,
placement tranche. great pride in being recognised by IJGlobal not just specific individuals. We have
Milbank represented the lenders and as the North American legal adviser of the embedded a culture where our clients view
investors on the $1.75 billion hybrid bank- year, energy. The 60+ lawyers within our us as their ‘trusted advisors’, so we provide
bond financing for the Whistler Pipeline, a Americas energy/infrastructure group work not only great legal services, but also
446-mile natural gas pipeline in Texas. in an extremely coordinated fashion, we are practical and business-oriented advice.”

www.ijglobal.com Summer 2021


47
IJGlobal Awards 2020 North America
2020

North American insurance adviser of the year


INTECH Risk Management
During 2020, INTECH Risk Management
had to innovate and come up with creative
ways to deal with a changing insurance
market as a result of the pandemic. In a
couple of instances, the insurance placed
during bid phase was no longer acceptable
for financial close, and INTECH consultants
were able to obtain insurance on behalf of
our clients in order to reach this milestone.
It is this ability to ensure flexibility for its
clients during unprecedented times that INTECH was also engaged to act as the increasing exposure to cyber liability,
INTECH was selected as insurance adviser lender and sponsors insurance adviser particularly in a hospital setting or with smart
of the year in North America, playing a vital on the Edmonton Valley Line Project in buildings, INTECH introduced a requirement
role on multiple large-scale and important Canada. The INTECH team had to deal for cyber liability insurance to address this
infrastructure projects in Canada and the with a changing insurance market as terms previously overlooked exposure.
US. and conditions available at bid were not Sarah Roberts, president at INTECH, said:
Prince George’s County Public Schools all readily available at financial close. This “Receiving the insurance adviser of the year
project is a great example of INTECH’s meant it had to guide its client through the award in North America is very meaningful
work where it acted as lender and sponsor impact and get the lenders and authority to us, especially this year. Despite the
insurance adviser. INTECH had to deal comfortable with this situation. unprecedented times, our team remained
with the complexity related to there being Another key deal for the insurance strong and committed to delivering top-
6 schools as part of this project, 2 of adviser was the New Adult Mental Health class service to our clients. Our consultants
which were still operational. In addition, and Addictions Facility P3 in Newfoundland were able to manage the rapid changes
INTECH participated in amendments to & Labrador. As the insurance adviser to in the insurance industry and delivered
the insurance requirements in the project the authority, INTECH had to ensure the creative solutions to achieve successful
agreement during the bid-process and right insurance policies were procured and financial closes. We are very grateful for the
financial close in order to obtain acceptable that the policy wordings were the most commitment of our INTECH consultants and
insurance for the project at hand. appropriate for this type of project. Given clients during 2020!”

North American Company legal adviser of the year, infrastructure


Torys

An independent panel of judges debated led the industry by creating new project related assets to its joint venture partner
long and hard to pick the winner for the finance structures, such as the use of a gas Canadian Pacific Railway Limited (CP Rail).
IJGlobal Awards 2020 legal adviser of netback.” This deal showcased the cross border
the year, infrastructure. Torys was singled Torys advised on some stand out capabilities of Torys’ infrastructure team.
out because it is the only law firm with transactions in 2020 including the C$1.5 Mark Bain, partner and head of the P3
an integrated infrastructure practice on billion 900MW Cascade Power Project practice group at Torys, said of the win:
both sides of the US/Canada border with for which it provided legal counsel to the “We are thrilled to have been recognised as
the ability to advise on the planning, Cascade Power Project Limited Partnership North America legal adviser of the year for
procurement and development of significant made up of Kineticor Resource, Macquarie infrastructure, an award which speaks to the
projects and implement secondary market Capital, OPTrust, Axium Infrastructure and depth and breadth of Torys’ multidisciplinary
trades and refinancings. DIF Capital Partners. North American platform. We are proud to
Judges commented that Torys has “great Another key deal for Torys was DP World’s field a strong team on both sides of the
experience” and is “well respected across acquisition of Fraser Surrey Docks - the Canada-US border and to have clients who
the industry”. One judge said that Torys fourth-largest container terminal operator partner with us to execute on all aspects of
merits recognition because of its “ongoing in the world - alongside CDPQ from funds their infrastructure and energy work, from
work in multiple infrastructure sectors” managed by Macquarie Infrastructure regulatory matters and transactions, to PPP,
and that in 2020, it “was at the forefront Partners. The transaction was complex projects and project financings.
of some of the largest and most complex and multi-faceted, involving the acquisition “It has been our privilege and pleasure
infrastructure projects and acquisitions in of the terminal and ancillary commercial to work alongside clients in this space on
North America”. transactions. Torys acted as legal counsel to award-winning and pathfinder projects at
Another judge added: “Tory’s was scored DP World. a time when infrastructure activity is on
as the legal adviser of the year due to the Torys also advised OMERS Infrastructure the rise in both Canada and the United
volume, scope and complexity of its multi- in the $312 million sale of its 83.5% interest States, and as the sector continues to see
sector infrastructure deals. Moreover, Torys in Detroit River Tunnel Partnership and its significant evolution and innovation.”

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48
IJGlobal Awards 2020 North America

North American MLA of the year


MUFG
For the second year running, MUFG has of the largest project financings in North COVID-19 market impacts, PG&E
scooped MLA of the year for North America America. bankruptcy risk, and California wildfire risk.
and, having consistently ranked high on The Whistler Pipeline project, a 500-mile KKR executed a $1.1 billion convertible
the league tables in that time, this year was natural gas pipeline in Texas developed equity portfolio financing agreement with
no different. In 2020, the bank closed 88 by WhiteWater Midstream, MPLX and a NextEra Energy Partners for an interest in
project finance deals in the region across joint venture between Stonepeak and a 1,125 net MW portfolio of renewable
the power, natural resources, infrastructure West Texas Gas was one notable deal that energy assets. MUFG played a critical role
and renewable energy sectors. MUFG successfully delivered $1.64 billion in structuring the debt financing, paving
IJGlobal’s independent panel of judges in debt proceeds, in line with the funding the way for the use of convertible equity
called the bank a “clear leader in the industry” requirements/goals of the sponsors. MUFG portfolio financing structures to be utilised in
and “consistently one of the best project was able to deliver the sponsors’ objectives future renewable energy projects.
finance commercial banks in the US market”. through its structuring and syndication Erik Codrington, managing director,
One judge said it is the “best MLA in the capabilities across the bank and bond project finance at MUFG, said: “The MUFG
market” and another judge said: “The scope markets. Americas project finance team put in a
and scale of bond financing arranged by Calpine Corporation, a leading producer remarkable performance in 2020, with over
MUFG in 2020 was remarkable, particularly of renewable geothermal energy closed 100 successful closings for clients, spread
in light of COVID-related market volatility and a $1.1 billion Climate Bonds Certified across the bank, bond, and institutional
uncertainty. Their projects represent a broad financing for its wholly-owned subsidiary, term loan markets. The team showed
cross-section of asset classes and structures. Geysers Power Company in 2020. MUFG great resilience and resourcefulness in
Moreover, MUFG served as the lead arranger acted as lead left arranger along with accomplishing all of this despite the
on 15 project bond transactions in 2020”. 7 other lead arrangers to successfully operational and personal challenges of the
MUFG frequently serves as coordinating syndicate and oversubscribe the large pandemic and the abrupt shift to remote
lead arranger and structuring bank for many transaction, despite headwinds from work.”

Providing strength and stability


to our clients, one deal at a time
Mitsubishi UFJ Financial Group is pleased to have been awarded Mandated Lead Arranger of the Year for both North America
and Latin America, along with a number of Deal of the Year awards, from the 2020 IJ Global Awards. We thank our clients for
these awards and for making us 16 “Deals of the Year” strong. Our sincere gratitude to each and every one of you.

NORTH AMERICA Battery Storage Bolt Energy Battery Storage Financing


DEAL OF THE YEAR Digital Infrastructure Massachusetts Bay Transportation Authority
Oil & Gas Canada Coastal Gaslink Pipeline
Oil & Gas USA Whistler Gas Pipeline
Petrochemicals Alberta Propane Dehydrogenation
Power Canada Cascade Power Project
Power USA CPV Three Rivers Energy Center
Refinancing Oil & Gas Freeport LNG Train 3 Refinancing
Refinancing Power Linden Cogeneration
Renewables Geothermal Geysers Facilities Project
Renewables Onshore Wind Western Spirit
LATIN AMERICA Oil & Gas Cakua Offshore Gas Compression Station
DEAL OF THE YEAR Power Transmission Alupar Transmission Line
Power EnfraGen Refinancing
Refinancing Transport Project Alma
Transport M&A Alto Magdalena Toll Road Refinancing
mufgamericas.com
Americas: +1-212-782-5975 | EMEA: +44 (0) 20-7577-5385 | Asia: +81-3-6259-1127
Products and services are offered through the MUFG Bank, Ltd., MUFG Union Bank, N.A., and Mitsubishi UFJ Securities (USA), Inc.
©2021 Mitsubishi UFJ Financial Group, Inc. All rights reserved. The MUFG logo and name are a service mark of Mitsubishi UFJ Financial Group, Inc.

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49
IJGlobal Awards 2020 North America
2020

North American model auditor of the year


Operis
Operis is renowned for financial modelling Within those, Operis reviewed deals as
expertise, due diligence and funding advice diverse as acquisitions of regulated utilities, “Operis has strong credentials
and according to IJGlobal’s league tables, greenfield construction of complex transport
worked on 10 transactions in 2020 with a asset and student accommodations, and and is able to operate in tight
total value of $10.1 billion in North America acquisitions of portfolios of renewable time schedules.”
alone. energies.
An independent panel of judges selected Prince Georges County Public Schools
Operis as model auditor of the year in (PGCPS) is one such example of Operis’
North America and commented that it work where it acted as model auditor for the
“demonstrated extensive experience in preferred bidder, a consortium made up of
2020 across multiple sectors”, and had a Fengate Capital and Gilbane.  Delays were Operis was initially awarded the mandate
“solid breadth of project finance coverage caused by the pandemic and a contentious to support the Parsons consortium under
through infrastructure and energy”. One political backdrop due to another Maryland the original tender for the LRT project, but
judge said: “Operis has strong credentials P3 deal occurring at the time. subsequently welcomed the opportunity
and is able to operate in tight time For this reason, many elements of to extend this support to the re-launch in
schedules”, with another judge commenting the project and financing structure were 2020, with Parsons joining in partnership
that it is “the best model auditor across the constantly evolving as the deal progressed, with Colas for the revised tender. Operis
infrastructure spectrum”. but Operis’s flexible audit process was able provided a 2-stage solution for the project,
In a year in which the global pandemic to react easily. with both a full audit provided at bid stage
significantly impacted infrastructure The Edmonton Valley Line West was the and a refresh of that audit undertaken to
development and the economy, Operis latest in a long line of light rail transit (LRT) support the consortium in reaching financial
took the time to strengthen relationships P3 schemes to be procured in Canada in close.
with clients and supported them in meeting 2020. Having originally been tendered as Another key deal for Operis was the CPV
project milestones. It also reviewed financial a P3 in 2019 (with 3 teams shortlisted in Three Rivers Energy Centre Acquisition.
models for transactions spanning numerous June of that year), the project subsequently Operis acted as the model auditor
infrastructure sectors such as power and ran into difficulties, with 2 teams pulling out to support Axium Infrastructure in its
renewables, transport, social infrastructure of the process. Edmonton subsequently acquisition of an equity interest in the Three
and oil & gas. retendered the project. Rivers power plant in Illinois, USA.

North American public sector award


City of Edmonton

The City of Edmonton in 2020 advanced as a stimulus for post-Covid recovery. the city council in December 2020 which
several discrete infrastructure projects, Valley Line West LRT achieved combines a municipal development plan
successfully acquiring all necessary property all procurement milestones despite and transport master plan. It also includes
for its infrastructure projects. market shifts due to the pandemic. The strategic direction in environmental
It was selected by an independent procurement launched in January 2020 planning, social planning and economic
panel of judges for the public sector award and reached financial and commercial development and presents a strategy for life
because it “demonstrated a sustained close on 23 December 2020. The in Edmonton.
commitment to infrastructure in 2020 $2.6-billion project is the second phase The plan articulates that public
with multi-sector initiatives (transport, of the Valley Line, a 27km low-floor urban infrastructure contributes toward the
organics processing, parks, etc), as well style LRT line. The first phase of the health, desirability, functionality, prosperity,
as diverse delivery approaches” according project, Valley Line Southeast, is currently sustainability, and resilience of Edmonton.
to one judge. Another said “Edmonton under construction. As examples, the plan highlights the need
should be recognised for its leadership When the pandemic hit, the team to: design and deliver mass transit and
in infrastructure”. One judge said they quickly adapted and shifted the process active transport network infrastructure
“appreciated the vision and plan that online. Bidders first provided technical that enablea energy efficient mobility;
Edmonton showed with its infrastructure submissions, including draft designs and design, build, finance and operate public
programme which covered various sectors plans, to demonstrate their ability to meet infrastructure to facilitate movement and
and models, and showed an ability to close the city’s rigorous technical requirements. universal accessibility in all seasons; and
a complex LRT transaction in a very timely All teams passed this first hurdle and were strategically expand infrastructure capacity
fashion”. invited to submit a financial proposal. The to enable future redevelopment.
The City of Edmonton’s ability to manage city evaluated these proposals to make The City of Edmonton has proved it
a complex infrastructure procurement from sure they met financial requirements, and understands that infrastructure is an enabler
start through financial close during a global the team with the lowest financial bid was of its goals. Its push to drive infrastructure
pandemic is laudable and will serve to selected as the preferred bidder. has been a beacon of light and hope
demonstrate how infrastructure can be used Edmonton’s City Plan was approved by throughout a challenging 2020.

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50
IJGlobal Awards 2020 North America
2020

North American ratings agency of the year


Fitch Ratings
Fitch Ratings was selected by IJGlobal’s to the PABs which led to significantly lower
esteemed panel of judges as the North “I believe our win can be debt service costs and strengthened the
American ratings agency of the year, due issuer’s financial profile by enhancing its
largely to its North American infrastructure attributed to our response to cash flow cushion at a time when such a
& project finance team which consolidated the pandemic by stress-testing cushion was particularly valuable.
its market leading position, rating 76 Fitch has been bold enough to work
transactions including 16 new issuers and
all the sectors we thought on emerging infrastructure asset classes
taking its portfolio to 309 ratings. would be impacted and like digital infrastructure. In August 2020,
Judges commented that Fitch stood out releasing those results publicly.” Fitch assigned A-, BBB- and BB- ratings
from its competitors in the infrastructure on 4 series of notes, totalling $225 million,
sector, and credit markets more broadly secured on SummitIG’s high capacity
because of its “external engagement”, its network of fibre optic cable assets, a
“ESG leadership” and its “dedicated website construction loan. Fitch’s upgrade and landmark first financing of its kind of fibre
on the credit and economic impact of the new rating assignment on the significantly assets.
pandemic.” enlarged debt structure came during Cherian George, global head of
Fitch won this category because it is the height of the pandemic. The rating infrastructure & project finance at Fitch,
currently the only credit rating agency with agency incorporated an analysis of the said of the win: “I believe our win can be
an integrated, comprehensive, systematic project’s exposure to the likely effects of attributed to our response to the pandemic
and credit-focused approach showing how the pandemic and how its operations were by stress-testing all the sectors we thought
ESG factors affect credit ratings from the being modified to limit exposure. would be impacted and releasing those
sector to entity and transaction level. Another project impacted by the results publicly. Our dedicated team should
Globally in the infrastructure sector Fitch pandemic was LBJ Infrastructure’s also be commended for all their efforts
now has 4,550 unique data points capturing $627 million Private Activity Bond (PAB) by providing strong analytics during trying
the impact of ESG factors in credit views. refinancing. Toll road traffic had drastically times.
In 2020, Fitch assigned a BBB rating to a reduced across the US and created a “We also continued to lead on ESG by
7-year term loan for the FLNG Liquefaction particular level of uncertainty for the providing investors with the tools to make
3 project, which on substantial completion economic prospects of managed lanes. a judgement on deals where parts of the
sought to refinance its original $2.5bn Fitch assigned a BBB- rating in August 2020 credit are affected by thematics.”

North American sponsor of the year


Plenary Americas

In 2020, Plenary reached financial close and government accommodation sectors


on 3 projects and reached substantial and continued to deliver projects and
completion and began operations on 6 financing structures that have never before
projects, despite the pandemic which halted been replicated in the North American
work on many construction projects around market, working with its clients to exceed
the world. project and environmental milestones.
Plenary reached financial close on 2 Some of the key deals it worked on in
major deals at the height of the pandemic 2020 included the Miami Dade Civil and
when credit markets were rattled, credit Probate Courthouse, the county’s first social
spreads were in uncharted environs and infrastructure P3 and the first of its kind
only credit-worthy participants and deals in the State of Florida, the University of
were able to secure financing. It is for this Idaho Utility System P3 and the New Adult
reason it was selected as sponsor of the Mental Health and Addictions Facility in
year for North America. Newfoundland & Labrador.
As well as its greenfield activities, the Brian Budden, president & CEO of Plenary
sponsor also purchased a healthcare Americas, said: “Receiving IJGlobal’s
portfolio from OMERS Infrastructure that sponsor of the year award is always a
included investments in 3 hospitals and 12 great honour, but we are particularly proud
long-term care facilities in Canada. It also to be recognised this year. It has been
sold its operating business as well as a a tumultuous time for our industry, our
controlling stake in its existing P3 portfolio project teams, and most importantly, for our thrive. I’d like to thank the Plenary Americas
to CDPQ. employees and their families. But, despite team and all of our partners and clients for
Plenary worked across its core market of the many challenges we have faced, our their collective contribution to our success
health, transport, education, defence, justice people and our company have continued to this year.”

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51
IJGlobal Awards 2020 North America
2020

North American technical adviser of the year


Lummus Consultants International
Lummus Consultants International provides with an additional debt package of $300
independent engineer reviews and technical million.
due diligence. It has more than 100 years of Another key deal Lummus worked on
experience in the energy and infrastructure was the US$4.7 billion Coastal GasLink
sectors, including sectors like power Pipeline, a 670km natural gas pipeline in
generation, transmission and distribution, British Columbia to supply feed gas for
oil & gas, refinery and petrochemicals and LNG exports, with easy access to Asian
LNG. markets. Lummus provided technical risk
In 2020 alone, Lummus Consultants due diligence on a wide range of projects assessments focusing on the key risk areas
worked on 14 global deals with a combined in 2020. Of particular note was its roles of capital cost, schedule, construction
total of $52.5 billion advising on primary as technical advisor on the Bolt Energy logistics, and regulatory issues.
financings, refinancings, asset acquisitions Storage.” A third deal that Lummus was involved
and additional facilities. Bolt Energy Storage was touted as the with was the $2 billion Sabine Pass LNG
IJGlobal’s independent judging panels largest battery storage project in the world. Refinancing which was used to repay debt
met in Q2 2021 to judge submissions Lummus provided critical elements of under the existing 2021 bond for which it
with a number of judges identifying the the technical evaluation on the LS Power provided technical risk assessments. The
consultant as “the clear front runner lithium-ion Battery Energy Storage System Sabine Pass Liquefaction Facility is owned
amongst the candidates based on number portfolio in California consisting of a 200 by Sabine Pass LNG, an affiliate of SPL
of deals” and “very strong in the energy MW Diablo Energy Storage facility under that is also owned by Cheniere Energy
sector with impressive deal volumes”. development, the 250 MW Gateway Energy Partners and comprises 5 operating natural
One judge said: “Lummus provided Storage facility in operation, and the 40 MW gas liquefaction trains and one natural gas
independent engineer reviews and technical Vista Energy Storage facility in operation liquefaction train under construction.

Support, Trust and Partnership


Drive Success
Lummus Consultants International is honored to be named the Global Technical Adviser for 2020.
Thank you to IJGlobal for this award and recognition of our efforts.

We would also like to thank our clients. In a challenging year, we successfully executed major
financial closings in the oil & gas and power sectors and made tremendous progress on projects
that will play a key role in the energy transition.

Your support was unwavering; your trust was critical; and your partnership was meaningful.

Thank you.

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52
IJGlobal Awards 2020 Latin America winning companies

2020

Latin America
winners
As with other regions, the number Winners in the Latin America companies category are:
of submissions for the company • Latin American bond arranger of the year – Goldman Sachs
category for Latin America received
• Latin American corporate trust of the year – Deutsche Bank
an unprecedented amount of
submissions… which we put down to • Latin American DFI of the year – IDB
improved marketing ahead of market • Latin American financial adviser of the year – Astris Finance
activity! • Latin American international legal adviser of the year – Milbank
Having said that, LatAm was no
• Latin American local legal adviser of the year – Garrigues Peru
slouch for deals closed in the 2020
calendar year giving the independent • Latin American MLA of the year – MUFG
panel of judges a challenging job to • Latin American model auditor of the year – Mazars
identify the market leaders. • Latin American public sector award – BNDES
Due to coronavirus and the inability
• Latin American ratings agency of the year – Fitch Ratings
to host physical judging events, we
created a dedicated LatAm panel to • Latin American sponsor of the year – Atlas Renewable Energy
oversee this process… which we will • Latin American tax adviser of the year – Pinheiro Neto Advogados
continue to do in future years. • Latin American tax adviser of the year – Infrata

Congratulations to all the winners!

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53
IJGlobal Awards 2020 Latin America
2020

Latin American bond arranger of Latin American DFI of the year – Latin American financial adviser of
the year – Goldman Sachs IDB the year – Astris Finance
Amidst volatile market conditions and a IDB’s presence is crucial in the infrastructure In 2020, Astris Finance closed $2.3 billion
challenging macro environment in 2020, and energy sector in Latin America. By of financing in 11 projects across different
Goldman Sachs has built on its leadership arranging debt packages and credit lines sectors like transport, renewable energy,
in Latin American infrastructure financings, to sponsors in Chile, Panama, Honduras, and power in key markets in the region
and continued to demonstrate its leadership Brazil, and Peru, among others, the IDB was including Brazil, Chile, Peru, and Mexico, as
in innovative and inaugural transactions in able to help the economy and ensure the well niche countries such as Uruguay.
the ESG space, with a particular focus on development of strategic assets in the region. An independent panel of judges selected
Covid-19 response. An independent panel of judges praised Astris as the financial adviser of the year in
An independent panel of judges selected the DFI’s “breadth and creativeness of the Latin America because “it demonstrated that
GS as the winner of bond arranger of deals the team has executed”. One judge it was a talented financial adviser in a very
the year in Latin America because of its said: “IDB has always been an important demanding year”. One judge said Astris has
“continued leadership in the bond market player in financing and structuring innovative an “impressive presence across the region”
for LatAm projects and infrastructure and challenging deals in Latin America”, and another said “Astris continues to impress in
financings”. One judge commented: and another said: “IDB was truly in a league terms of innovation and transaction execution”.
“GS has had a quite great year, closing of their own in 2020 in terms of innovation A notable deal Astris worked on in 2020
particularly innovative transactions such as and execution by DFIs in the Latin American was advising Grupo Via Central, a consortium
the Ecuador Social Bonds”, and another project and infrastructure market. The owned by Sacyr, NGE, Saceem, and Berkes
said: “The bank showed a great concern diversity, complexity and leading-edge on the closing of a $75 million, 12-year
with ESG issues in a year when those were nature of their transactions in 2020 was subordinated tranche with IDB Invest and
the most relevant questions. Deals were quite impressive”. Global Infrastructure Partners (GIP).
very interesting and innovative combining Astris successfully managed to close the
different sources of financing in different refinancing of Pempcorp Mexico despite
sectors. “IDB was truly in a league of the Covid-19 crisis and the Mexican energy
One judge added: “GS has the ability their own in 2020 in terms of sector’s political uncertainties, the latter
to execute across multiple situations and particularly averse to private investments.
take a more proprietary view on credit innovation and execution.” The Pemcorp refinancing consisted in a
underwriting. You see them whenever there 7-year mini perm for a debt amount of $170
is a complex deal to be solved”. A key deal for IDB was Huemul financing. million backed by contracted revenues.
As mentioned by one of the judges, a After being awarded a 20-year PPA in 2016, The Arco 1 portfolio refinancing in Chile
notable transaction for the bank was the Mainstream began to look for financing was another great win for Astris. The
Ecuador Social Bonds. GS acted as sole to develop the wind and solar projects refinancing included 3 tranches, totalling
global coordinator, bookrunner & social and reached out to banks to close debt $430 million and backed by contracted
notes structuring agent for the issuance packages for the second portion of the 630 revenues (energy sold through PPAs to
of $400 million 7.25% social notes due MW Huemul. After months of negotiations Minera los Pelambres, the biggest copper
2035. Ecuador became the first sovereign and delays caused by the pandemic, IDB mine in Chile) with the surplus sold in the
in the world to issue a social bond with the Invest and other banks managed to reach spot market. A mix of PPA and merchant
proceeds used to fund the country’s social financial close on the $620 million 19-year financing in Chile was backed by renewable
housing programme. debt package in 2020. assets with 6 international lenders, done in
GS acted as sole bookrunner and Last year, IDB Invest and DNB Bank the middle of the pandemic, while generating
structuring agent on a $360 million arranged the $67 million loan for the 187 significant cash-in and value for the sponsor.
Covid-19 relief term loan due 2027 and on MW Jacaranda project - also known as
the subsequent issuance of $342 million New Juazeiro - owned by Atlas Renewable “We are delighted and
Covid-19 relief notes due 2027 for Banco Energy. The deal was the first time a
Nacional de Panama. The transaction was Brazilian solar project had been fully honoured to have received this
part of the largest Multilateral Investment financed in US dollars, which proved IDB’s award for the third year.”
Guarantee Agency (MIGA)-guaranteed skill and leadership.
financing in LatAm. IDB Invest provided a $100 million 8-year Tobey Collins, managing director, head
A third transaction of note was Tierra debt package to fund the expansion of Gas of energy, Americas at Astris Finance, said:
Mojada for GS. FEL Energy successfully Natural de Lima y Callao gas distribution “We are delighted and honoured to have
priced $953 million of senior secured system in Lima and Peru’s constitutional received this award for the third year in a
144A/reg S notes, with GS acting as joint province of Callao. IDB closed the deal, row. The recognition by our peers in the
bookrunner. Through unique structural proving once again how it was able to fill the Latin America region means so much to our
features including a cash sweep, the gap left by the local investors, who were not regional and global teams. We give heartfelt
issuance achieved 3 investment grade able to provide these loans. The deal also thanks to our clients who have provided
ratings, Baa3 (Moody’s), BBB- (S&P) and proves IDB’s versatility, as it showed that it us with such exciting opportunities where
BBB- ( Fitch) despite material exposure to can work across Latin America in pure project our team has been able to showcase our
merchant revenues. finance deals and corporate transactions. talents and creativity.”

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54
IJGlobal Awards 2020 Latin America
2020

Latin American corporate trust of the year


Deutsche Bank
For the last few years, Deutsche Bank Debt Fund in 2020, seamlessly executing all
Corporate Trust has won IJGlobal’s corporate tasked duties, ensuring timely completion
trust of the year in North America but this of the deal, smooth account openings, and
year it has also won in Latin America. swift responses to client inquiries.
In the Americas, Deutsche Bank provided It also worked on X-Elio’s $40 million
services to projects worth $6.8 billion, project financing of La Cruz, a 58MW solar
serving sponsors from 8 countries covering PV plant in Chile, another deal hit by the
the full spectrum of assets from renewable pandemic and unexpectedly impacting
energy, power, transport, midstream oil and the project timeline as rolling shutdowns,
gas, telecoms, and water and waste sectors travel restrictions, and the shift to entirely
in 2020. Last year it had an added focus on remote working positions posed issues
sustainable financing. for all deal parties located in Spain, the
An independent panel of judges selected US, and Chile. Despite these challenges,
Deutsche Bank because its “depth and X-Elio and Deutsche Bank were able to
breadth of coverage and reported ease work seamlessly together maintaining Thalia Delahayes, head of project finance
of use and quality of execution was regular communication and organisational agency, Americas at Deutsche Bank,
impressive”. One judge said “Deutsche processes, successfully bringing the project said: “We are honoured to have won the
Bank was more active in terms of deals to financial close. Latin America corporate trust award from
and volume in Latin America. And they Deutsche Bank was also engaged IJGlobal. This recognition from the journal’s
were really interesting deals which involved to act as offshore collateral agent and editorial team and industry experts is a
multiple jurisdictions”. Another judge said it offshore account bank on Proman Group’s testament to the quality of services provided
had a “good coverage of the region with a Topolobampo project, an ammonia plant by our project finance agency teams.
dedicated team of professionals specific to in the industrial port of Topolobampo “Given the past year’s headwinds, we
trust services related to project finance and on the Gulf of Mexico. Deutsche Bank are proud to have been able to seamlessly
infrastructure assets”. was engaged on the deal a few weeks support our clients while demonstrating
Deutsche Bank acted as administrative before the closing, leveraging a previous resiliency and robust business continuity
agent and collateral agent on the closing relationship with the client from a prior deal, plans in helping developers, sponsors and
of Polaris Infrastructure’s $27 million loan the transaction was set-up, executed, and investors bring their projects to financial
financing with the Brookfield Infrastructure completed in an expedited timeframe. close.”

Latin American international legal adviser of the year


Milbank

For the second year running, Milbank was Dan Bartfeld, practice group leader
selected as international legal adviser of the of the firm’s global project, energy and
year in Latin America for 2020, considered infrastructure finance group, said: “We take
to be the only law firm with a project finance great pride in being recognized by IJGlobal
practice consistently recognised across all as Latin American legal adviser of the year.
industries and countries in the region. We have embedded a culture where our
An independent panel of judges said clients view us as their ‘trusted advisers’,
Milbank was “very active in the region so we provide not only great legal services,
across different sectors and products - but also practical and business-oriented
loan and bonds - and has a pragmatic advice. We also put a premium on hiring
approach”. One judge said “Milbank has the best associates – we have an incredible
great coverage of the key sponsors and group of young attorneys who are extremely
underwriters in the region. It worked on hard-working, dedicated, interested –
milestone capital markets transactions and Milbank acted as lenders, counsel in and interesting – and curious about our
has the ability to support large and smaller the $450 million financing to Lima Airport business, this is really key since they are
projects”. Another judge commented: Partners (LAP) for the expansion of the often the front line of day-to-day interaction
“Milbank has a very practical approach to Jorge Chávez International Airport, a second with the clients.
legal advice which is much appreciated by key transaction for the law firm. “As a result of the coordinated and
business people”. Mainstream’s project financing of the team-oriented culture that we have very
A key deal for Milbank in 2020 was 630MW Huemul portfolio, which comprised intentionally created, our clients feel great
advising FEL Energy on a $953 million 3 onshore wind and 2 solar PV generation about us as key members of their team, and
offering of 5.750% senior notes due 2040 assets is another deal that Milbank they bring us with them when they embark
for the Tierra Mojada project, a natural gas- worked on, advising sponsor Mainstream in new countries and in new industries and
fired combined-cycle power plant in Mexico. Renewable Power and its subsidiaries. in new financing/acquisition arrangement.”

www.ijglobal.com Summer 2021


55
IJGlobal Awards 2020 Latin America
2020

Latin American local legal adviser Latin American model auditor of Latin American public sector
of the year – Garrigues Peru the year – Mazars award – BNDES
Although many ongoing infrastructure and In 2020, Mazars helped to make sure In 2020, Brazilian development bank BNDES
energy projects had to halt construction scarce resources were used effectively advanced plans to reposition itself as more
and development to comply with strict to build and maintain new energy and than just a lender. Traditionally seen as a
emergency measures declared by the infrastructure assets. In the Latin America major competitor by commercial national
Peruvian Government, Garrigues still region, Mazars worked on 4 deals that and international debt providers, it now
advised a significant number of agencies, reached financial close in 2020 with a wants to be identified as a one-stop-shop
companies and financiers on various capital value of circa $2.6 billion and topped for developing Brazil’s infrastructure, a sector
projects of vital importance to develop the IJGlobal league tables in the calendar seen as critical for economic recovery as it
national infrastructure. year. emerges from the Covid-19 pandemic.
It is for this reason it was selected as Judges said of BNDES: “It continues to
local legal adviser of the year for Latin be the mainstay of funding infrastructure
America by IJGlobal’s independent panel of in the Brazilian market while also seeking
judges which said Garrigues provided “great to evolve their role in advancing Brazilian
customer service and impressive deal flow infrastructure”. One judge commented:
coverage in both Peru and Chile.” “BNDES is one of the main players in
The law firm was involved in 9 transport Brazilian infrastructure and is doing a great
infrastructure projects, 4 oil & gas projects, job in leading the privatisation programme
1 water irrigation project, 1 hospital project in Brazil”. Another judge said: “BNDES is
and 3 energy projects, among others in very strong in execution and supporting
2020. priority sectors”.

Securing this award is a


testament of Garrigues’ strong
footprint in the region.

Garrigues has a multidisciplinary approach


which was evidenced in major M&A,
finance, capital markets, regulatory and
banking transactions throughout 2020
(including innovative social bond issuances,
novel securitisations, inaugural debt
issuances, sovereign offerings and IPOs in
the US market).
Notable deals it worked on included A key deal Mazars worked on was to
acting as lenders, counsel to finance the provide model audit services to EnfraGen
Lima Airport expansion, advising the lenders in relation to the refinancing of its existing
on China Yangtze Power International’s portfolio of assets in Latin America. The
acquisition of Luz del Sur, a cross-border primary use of proceeds from the notes
$4 billion financing, under Hong Kong law issued, combined with a pari passu $1.05
and advising Grupo Romero in the sale of billion bank debt package for a total of
Tramarsa Flota, Naviera Tramarsa and Diving $1.76 billion, refinanced the issuers’ existing
del Perú to PSA Marine. debt portfolio. It also fully funded near-
Oscar Arrús, partner at Garrigues said: term growth projects as part of EnfraGen’s At the centre of this new concept is the
“We are extremely proud to have been broader strategy to fund multiple growth steep increase in project origination and
awarded Latin American local legal adviser initiatives and optimize its capital structure. structuring, something that the bank is
of the year. Securing this award is a Mazars provided model audit services to not used to doing at large-scale. For that,
testament of Garrigues’ strong footprint the concession created to build 50.2km of the bank works closely with federal, state
in the region and a recognition of our new road, 2 tunnels, bridges and revamping and city governments that are looking
continuous efforts to advise clients on the existing Cúcuta-Pamplona 4G highway, into structuring concessions, PPPs or
cutting-edge and complex transactions. We located in the Norte de Santander privatisations. BNDES’s leadership aims to
are honoured, once again, to be recognized Department in Colombia. The sponsors of change this function by acting more like
by IJGlobal and believe this will help us the 62.2km (38.65 mile) Cúcuta-Pamplona other DFIs that focus on attracting other
to continue delivering exceptional client highway reached financial close on a USD sources of financing to the country instead
service across the region.” 520m debt package in 2020. of being the sole lenders on large projects.

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56
IJGlobal Awards 2020 Latin America
2020

Latin American MLA of the year


MUFG Bank
MUFG ranked consistently high in the Tolima and Risaralda. MUFG was the lead
IJGlobal league tables in 2020 and is arranger, swap coordinator (both interest
widely considered the leading MLA for rate and FX), and offshore collateral agent
project finance in the Americas. It closed for this transaction valued at $163.5
88 deals last year across the power, natural million in total construction facilities. It was
resources, infrastructure and renewable considered a landmark transaction because
energy sectors. it was the first greenfield transmission
It is for this reason that an independent line in Colombia to be financed with an
panel of Latin American judges selected international project finance structure. This
MUFG as MLA of the year for the region. was also Alupar’s first transmission line
As one judge said: “MUFG had a year head project in the country.
and shoulders above others in terms of the A third deal of note for MUFG was
complexity and diversity of the transactions the 630.2MW Huemul Portfolio for the
which they led”. Another judge said: “the development, construction, and operations
bank had a strong year and great capital growth projects and optimise Enfragen’s of 3 wind assets and 2 solar assets. The
coverage of the region”. capital structure. The financing was deal represents an important transaction in
One of the biggest deals MUFG completed prior to year-end 2020 taking the Latin America project finance space as
worked on in Latin America was Enfragen advantage of the continued rally in the it will help support Chile’s renewable energy
refinancing. The sponsors of Enfragen, market and lower supply dynamics. It was target of supplying 20% of the country’s
jointly controlled by Glenfarne Group and also executed during an election and the electricity from renewable resources by
Partners Group, were seeking to refinance pandemic. 2025.
and expand a portfolio of power and The La Virginia - Nueva Esperanza Ralph Scholtz, managing director,
renewable assets in Chile, Colombia, and Transmission Line (Alupar) was for the project finance, Americas at MUFG said:
Panama. The refinancing utilised a project design, construction, finance, operation “The LatAm region was hit hard by the
finance arrangement to raise over $1 billion and maintenance of a new 235.4km long pandemic but our clients managed to move
bank commitments and a $710 million 500kV power transmission line connecting forward through the market uncertainties.
private placement. the substations of La Virginia and Nueva We are very thankful to earn their trust
The hybrid (bank bond) structure provided Esperanza crossing 27 municipalities in and honoured to get recognised in such
the capital required to fully fund near-term the departments of Cundinamarca, Caldas, challenging times”.

Latin American ratings agency of the year


Fitch Ratings

In 2020, Fitch worked to enhance its senior secured notes for FEL Energy (BBB-),
reputation as a thought leader on the Latin The Fitch infrastructure a thermal energy transaction and ratings to
American infrastructure sector, publishing the Javiera & Parque Fotovoltaico Sol del
over 19 special reports and other non-rating
team has done a fabulous Desierto renewable projects (BBB-) located
related commentaries, in addition to 282 job in staying on top of the in Chile.
rating publications. most-affected transportation Cherian George, global head of
Fitch has the largest presence in Latin infrastructure & project finance at Fitch
American project finance (157 public project portfolio. Ratings, said: “The pandemic has taken
finance ratings), with increasing coverage a heavy toll on Latin America, where
of roads, ports, airports, hydro, transmission conditions have been bad and continue to
lines, thermo plants, renewables and social bring efficiency to capital markets by assisting worsen. The Fitch infrastructure team has
infrastructure. market participants make informed, timely done a fabulous job in staying on top of the
Over the past couple of years Fitch has decisions. The Fitch team also focused on most-affected transportation portfolio.
rated over $11 billion of cross border debt keeping market participants informed on the “This has required several reviews as
for Latin American infrastructure projects. credit implications of the coronavirus crisis. conditions change and a recovery remains
Its expertise has reached into local markets Fitch has been combining its long distant unlike parts of the developed
such as Brazil, Mexico, Colombia and Chile, knowledge in each of the markets with world. The Fitch response amidst personal
with over 120 local ratings on $10 billion of global/regional expertise in Spanish, and professional challenges has been
project finance debt. Portuguese and English. remarkable with timely ratings actions and
An independent panel of judges selected Deals of note that Fitch provided credit issuer commentary, along with topical,
Fitch as the Latin American ratings agency ratings for in 2020 were the senior secured in-depth industry research across the
of the year because of the important role it notes to be issued by Guara Norte (BB+), infrastructure and energy space, investor
has played in providing timely, insightful and an FPSO (offshore oil production and calls and webinars. Our regional expertise
transparent commentary. This has helped to storage) in Brazil, the planned issuance of is well-recognized and unmatched.”

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57
IJGlobal Awards 2020 Latin America
2020

Latin American sponsor of the Latin American tax adviser Latin American technical adviser
year – Atlas Renewable Energy of the year – Pinheiro Neto of the year – Infrata
Advogados
Atlas is the fastest growing and most In 2020, despite the global market
innovative company in the Latam region Pinheiro Neto Advogados’ was selected downturn, Infrata worked on more than 100
developing and financing solar energy as tax adviser of the year for Latin America transactions across 29 countries in Europe,
projects for large energy consumers through because of the firm’s tax law experience North America, South America, Asia, Africa
corporate PPAs which is why it was singled in assisting local and foreign companies and Oceania spanning the road, rail, airports
out by an independent panel of judges as in bidding processes, funding projects, & ports, social infrastructure and street
sponsor of the year in Latin America. creation of consortia and various equity lighting sectors.
Judges said: “Atlas’ projects with Anglo acquisitions in the infrastructure sector. Infrata acted as lenders, technical adviser
American and Dow provide double the and environmental and social adviser on the
green benefit – development of renewable Ferrocarril Central project. The project entails
energy resources generally and a greening the DBFM of a 273km railway joining the
of the chemicals and mining sectors”. One north and the south of Uruguay to boost the
judge said: “Atlas worked on complex deals economy by increasing the traffic of goods
involving several jurisdictions and innovative and people, with a total capex of $1.1bn.
structure”, with another commenting: “Atlas Ferrocarril Central is the only project of its
did a first of a kind transaction financing kind in a country with very limited railway
a PPA in US dollars in Brazil in partnership technology. Infrata carried out a deep and
with IDB. It also executed in a difficult thorough analysis of the concessionaire’s
environment the financing of an institutional plan and technical proposal as well as the
financing for a greenfield solar project in complex contract structure which involved 6
Chile.” different lenders and 4 sponsors.
Atlas was part of the Ananuca Deal
in Chile where it issued, alongside DNB
Markets, a $253milion US private placement
in green bond format. This was the largest In 2020, Pinheiro Neto Advogados was This award has come at a
solar bond in Latin America with a unique hired by the Royal Golden Eagle Group wonderful time for us as
structure combining the financing of a new for the expansion of the Pulp Plant project
project (with construction risk) with a bond, in the State of São Paulo. The project
we are celebrating our 10th
while at the same time with the same bond, included not only the construction of the anniversary this year and we
refinancing an existing operational project. new industrial plant, but also the acquisition are very proud of our success.
The sponsor, together with IDB Invest of wagons and locomotives to carry out the
and DNB Bank executed the first US dollar transport of products and raw materials,
project financing in Brazil’s renewable the installation of a thermoelectric plant for
sector, obtaining a $67 million loan to the production of energy and the leasing of Another key deal Infrata worked on was the
finance the construction of Jacaranda, a a port terminal. The deal required both in refinancing of the loan package secured
187MW solar project in Brazil. The deal Brazil and abroad, a significant amount of for the Red Vial 4 Pativilca-Trujillo project
represented a dramatic breakthrough that assets, especially fixed assets. Pinheiro Neto in Peru. The new financing was backed
enabled new global investors previously Advogados worked on reducing the tax cost by cash flow from already operational
concerned with currency risk, to be able to of implementing the infrastructure project. tolls. The sponsor will use proceeds to
invest in Brazil with significantly reduced FX Another key deal for the law firm was the refinance previous debt associated with
risks. acquisition of Baúna oil cluster by Karoon the highway construction and to fund
A third key deal for the sponsor was Energy from Petrobras. It provided legal additional works, including construction of
he Casablanca Solar project in Brazil, the support on the tax and customs aspects the 37km Chimbote bypass. The refinancing
company’s second and largest financial of the acquisition of Baúna oil cluster by of this project included a large number of
closing in US dollars in the country. reviewing negotiating charter and service multilateral and investment banks.
Atlas obtained a $150 million loan to agreements for the FPSO, preparing the Alonzo Guzman, managing director at
finance the construction of Casablanca, a legal strategy for the transfer of the FPSO Infrata, said: “We are delighted that we
359MWp solar project. As part of the social from Petrobras to Karoon and discussing the have won Latin American technical adviser
programme associated with the project, allocation of the revenues, expenses and of the year and involved in another 2
Atlas designed an initiative to promote costs of Baúna oil cluster during the post award winning deals at this year’s awards.
diversity and inclusion and offer training to signing period. This award has come at a wonderful time
the local female workforce that could then Pinheiro Neto Advogados also provided for us as we are celebrating our 10th
opt for technical jobs within the plant’s tax advice on Cecília Rios Sibulka Aegea’s anniversary this year and we are very proud
construction. The financial deal structure issuance of preferred shares which involved of our success and the supporting role
also falls under Atlas’ Green Finance a unique structured financing amounting to we’ve played. We would like to take this
Framework - a testament to the company’s BRL 500 million. The transaction involved opportunity to congratulate our clients and
commitment to developing projects that the finance and improvement of Brazilian all parties involved for making the projects a
protect and preserve the environment. sanitation infrastructure. resounding success.”

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58
IJGlobal Awards 2020 Asia Pacific winning companies

2020

Asia Pacific
winners
This year’s submissions for the Winners in the Asia Pacific companies category are:
IJGlobal Awards in the APAC region • Asia Pacific bond arranger of the year – MUFG
outmatched any previous levels and
• Asia Pacific DFI of the year – Asian Development Bank
give the editorial team more work than
anticipated writing it all up – as you will • Asia Pacific financial adviser of the year – DBS
see in the pages to follow. • Asia Pacific legal adviser of the yea – Allen & Overy
We would like to take this opportunity • Asia Pacific MLA of the year – Societe Generale
to thank everyone for taking the time to
• Asia Pacific model auditor of the year – BDO
submit for the IJGlobal Awards 2020
and to congratulate all the winners. • Asia Pacific public sector award – Government of Indonesia
We would also like to thank the • Asia Pacific ratings agency of the year – Fitch Ratings
independent panel of judges who gave • Asia Pacific sponsor of the year – Ayala
their considered opinions on so many
• Asia Pacific technical adviser of the year – Mott MacDonald
of the results.

Congratulations all.

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59
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific bond arranger of the Asia Pacific DFI of the year Asia Pacific legal adviser of the
year – MUFG Asian Development Bank year - Allen & Overy
The award for Asia Pacific bond arranger of Our team of Asia-based independent
the year has been won by MUFG. judges awarded the Asia Pacific legal
Voting for this category was the closest adviser of the year to Allen & Overy.
by our team of Asia-based independent Allen & Overy has an enviable heritage
judges. “MUFG’s focus on innovation brings Our team of Asia-based independent in this sector – a law firm with infrastructure
it over the line,” noted a judge. judges decided to award the Asia Pacific and energy truly in its DNA. A&O is a
Sydney Airport issued in February 2020 development finance institution of the year mainstay of the IJGlobal Awards agenda
a US private placement (USPP), in which to Asian Development Bank (ADB). having for decades played a pivotal role
one 20-year tranche had a coupon linked ADB and China Gas in March 2020 signed in the delivery of infrastructure and energy
to ESG performance. This complemented a $20 million non-sovereign loan agreement around the world.
A$1.4 billion ($722 million) ESG-linked bank to ensure gas deliveries make it to end-users “Our busiest ever year at the practice with
loans the Australian airport operator raised in Hubei. In the wake of Covid-19, China choice roles on almost all the major projects
in 2019. Gas expanded operations to secure gas to in APAC,” said A&O. “We are working on
The triple-currency USPP is understood help ensure continued service to existing more secondary market transactions,
to be the first ESG-linked USPP and the first customers and to make gas available for such as acquisitions and acquisition
USPP issuance with potential for two-way new needs such as the supply of LPG to finance in relation to interests in projects/
pricing movement. hospitals and health facilities. energy companies and energy and natural
“ADB’s lending to China Gas helped the resources transactions, refinancing and
company finance gas supply for new hospitals other similar transactions.”
that were hastily being constructed to meet The law firm advised the lenders on the
“MUFG’s focus on innovation the growing demand for beds,” said a judge. more than $740 million Almaty ring road
brings it over the line.” “The timely financing during the first phase PPP project, described as Central Asia’s first
of the pandemic was very impressive. It proper PPP. DFIs dominated the $585 million
served the purpose of development financing limited recourse project financing – with a
institution in true form.” Another judge added: full pass-through of EPC and O&M risks to
“From the outset it was our intention to “The Wuhan financing in the early days of the the relevant contractors. Bank of China and
price the ESG tranche alongside a vanilla pandemic was made with unusual speed, PGGM took EBRD’s B loans.
tranche of the same maturity to evidence showing ADB’s agility in a crisis.” A&O also advised Ichthys LNG as
the price differential between the two,” The judges also praised ADB’s financing borrower on the massive refinancing of
Matthew Carr, head of debt capital markets of a 50MW solar power plant and the Ichthys LNG project. Lead sponsors
for Australia and New Zealand at MUFG transmission line in southern Vietnam. The Inpex Corporation and Total in June 2020
Securities Asia, told IJGlobal. “On this project was one of the first international refinanced its project debt, which sized
transaction, 20 years best suited the maturity project financed solar power projects in the at $8.29 billion and was said at the time
preference of the particular investors.” country. The multilateral helped to mitigate to be the largest refinancing of a project
“The Sydney Airport ESG bond could the risk perceptions of commercial lenders finance facility. Liquidity from a global mix
lay the pathway for other issuers,” added to Vietnam’s renewable energy market. of commercial banks was surprisingly
another judge. “It was effectively the first lending of scale strong, given the timing amid the Covid-19
MUFG was a joint bookrunner on to a renewables project in that way with the pandemic and an oil price crash, with
Malaysian state-owned oil and gas B loans structure which is fairly innovative,” uncovered debt’s pricing significantly
company Petronas’ $6 billion bond offering said a judge. “It provides a potential reduced.
in April 2020. At that time, it was one of the pathway for similar lending.” Another judge “Allen & Overy was involved in varied and
largest by an Asian issuer in history. The noted: “The slightly unusual structure high-profile deals,” said a judge.
144A/Reg S transaction was Petronas’ first helped break through what was otherwise a The law firm advised the lenders on
on the US dollar bond market since 2015. difficult market for commercial banks.” the refinancing of the integrated Roy Hill
The bank was also joint global coordinator “ADB’s lead role broke the impasse on iron ore project in Western Australia. The
and joint lead manager on Singapore’s the bankability of the PPA for Vietnamese refinancing is a milestone to complete
first US dollar corporate green bond – renewables,” added a third judge. development, which, at the time of the first
Singapore-based independent power ADB’s participation in Afghanistan’s transaction, was the largest ever project
producer Vena Energy’s $325 million, Reg first private sector gas-fired power project financing in mining. Roy Hill is now poised
S green bonds. The 2025 notes closed at financed by development finance institutions to be one of Australia’s largest operating
3.133%, or a spread of 172.5bp over US including ADB was also ground-breaking. mining projects.
Treasuries. The financing of the 59MW Mazar-e- “The choice was difficult,” conceded
“While the Petronas and Vena deals Sharif gas-fired power plant, which also won a judge. “Most of us have long-term
were not strictly project bonds,” noted a the IJGlobal 2020 DFI transaction of the relationships through retainers or panels.
judge, “they showed MUFG’s capabilities in year, will have wide-ranging impacts across Allen & Overy’s geographical, sector
different sectors.” the fragile and conflict affected country. diversity and broad range won the day.”

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IJGlobal Awards 2020 Asia Pacific

Asia Pacific financial adviser of the year


DBS
The award for Asia Pacific financial adviser The judges also candidly discussed DBS’
of the year has been won by DBS. performance. “I really struggled because “They had to work around the
Despite Covid-19, DBS won 10 new of the coal project,” said a judge. Others
financial advisory mandates, with 15 echoed the sentiment.
PLN and all the share pledges
mandates under execution for about $5.5 DBS completed its last coal-fired power issues. It was an important and
billion of debt. Assignments spanned 8 plant mandate for a 2GW power plant difficult deal.”
markets in the region. They involved a complex in Indonesia. Java 9 and 10 is
diversified portfolio in renewables (wind, a project led by a PLN subsidiary (51%),
solar and geothermal), LNG, metals and Barito Group and Kepco from South “They had to work around the PLN and
mining, and oil and gas sectors. Korea. With about 45% or $1.1 billion from all the share pledges issues. It was an
“DBS had a strong diversified set of commercial banks of the $2.5 billion total important and difficult deal,” said the judge.
mandates with a robust green focus,” said debt raised, the financing is one of the Judges were also impressed by the
one of the judges. largest commercial tranches for greenfield bank’s involvement in the 70MW Mingus
The Singapore-headquartered bank IPP financing in Indonesia. ground-mounted solar project in Taiwan.
advised on Taiwan’s first and largest floating The transaction required a bespoke DBS led negotiations about the optimal
solar plant built in an inter-tidal zone for corporate governance solution to satisfy risk allocation in the corporate PPA, one of
Marubeni, acquired from I Squared Capital. lender concerns. As Indonesia has adopted the first of its kind in Taiwan. This was an
The Changhua 181MW floating solar project, a shareholder/offtaker model from the innovative project that will be the largest
among the world’s largest, was a landmark Middle East, the deal is a possible model for utility-scale solar plant in Taiwan when
transaction. It convinces the public and private future Indonesian projects. commissioned.
sectors of the bankability of floating solar, A judge complimented DBS’ tenacity in “DBS had an impressive submission,”
encouraging similar projects across Asia. working with a large state-owned sponsor. summarised a judge.

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61
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific MLA of the year Asia Pacific model auditor of the Asia Pacific sponsor of the year
Societe Generale year – BDO Ayala
The award for Asia Pacific MLA of the year BDO is the Asia Pacific model auditor of the Our team of Asia-based independent
has been won by Societe Generale. The year. IJGlobal credits BDO with more than judges awarded the Asia Pacific sponsor of
judges had nothing but praise for SocGen. $47 billion project value on 15 transactions the year to Ayala.
“SocGen’s submission showed a wide during the past 5 years. Three deals worth As the Philippines’ oldest and largest
range of projects in which they were $9 billion closed in 2020. conglomerate, Ayala has long been a
involved,” said a judge. BDO affiliates in Australia and the UK mainstay in the country’s development. It
The French bank financed the ground- provided model audits to clients across was the group’s concerted effort beyond the
breaking 180MW Changhua floating solar Asia Pacific. BDO Australia worked on the archipelago that judges praised.
farm in Taiwan, the massive CFXD offshore financing of the Changfang and Xidao The refinancing of the 75MW Sidrap
wind in Taiwan and Japan’s first commercial Offshore offshore wind project (CFXD) in I wind farm, Indonesia’s first wind power
scale offshore wind farm – all 3 transactions the Taiwan Straits. That financing is the project, by Ayala subsidiary AC Energy
were named deals of the year. APAC Regional Project Finance and Export and UPC Renewables anticipates the
SocGen was MLA, technical bank, and Finance deals of the year. development of the nearby Sidrap II. Sidrap
hedge provider in the NT$7.3 billion ($240 Sponsors Copenhagen Infrastructure I was AC Energy’s first offshore greenfield
million) project financing of the 180MW Partners, Taiwan Life and TransGlobe Life, investment.
Changhua floating solar project in Taiwan reached financial close in February 2020 “Sidrap’s refinancing shows the company’s
– one of the largest in the world. Marubeni through a nearly NT$120 billion ($3.94 commitment to the Indonesian market and
acquired the project at financial close from I billion) financing package. BDO reviewed illustrates Ayala’s growth strategy beyond the
Squared Capital. the financial model by CIP’s advisers Philippines,” said a judge.
for financing and to ensure compliance The same could be said for AC Energy’s
with the underlying project and financing 210MW wind farm in Quang Binh – the
documents and local accounting and tax largest wind farm to date in Vietnam to
legislation. BDO Taiwan provided support for enter construction, according to the Ayala
tax compliance. energy unit. AC Energy is providing the full
BDO worked closely with the lenders construction capital for the project.
and CIP’s advisers to meet the changing “Ayala has long had a highly established
demands during the transaction. “Throughout presence in the Philippines. But 2020 saw
the model audit process, BDO provided them solidify their position as an Asian
“The team has come to the fore again,” practical and relevant recommendations presence rather than a local player only in
said another judge. “We’re impressed by the that enabled CIP’s advisers to provide a the Philippines,” shared a judge.
diversity of their portfolio. The mix of markets financial model to lenders that was not only Ayala’s ambitions reached into the Pacific.
and sectors is quite impressive.” fully audited but also met all lenders, internal AC Energy, through a JV with Hong Kong-
SocGen arranged the debt behind requirements for the purpose of obtaining based UPC Renewables, made a strong bid to
the Changfang and Xidao offshore wind credit approvals,” the company said. acquire ASX-listed Infigen Energy. While the
projects in the Taiwan Strait, collectively BDO UK also supported Tengizchevroil’s Spanish utility Iberdrola ultimately acquired
known as the CFXD project, via a roughly $5 billion refinancing to repay loans drawn Infigen for A$893 million and delisted the firm,
NT$120 billion financing package. to fund its $45 billion Future Growth AC Energy’s JV in early 2021 reached financial
SocGen was the first international bank to Project/Wellhead Pressure Management close on a A$500 million solar farm in New
finance the solar power sector in Indonesia. project. Proceeds are used to increase South Wales. The JV is also developing the
It financed 2 of Berkeley Energy’s solar the production capacity by about 160MW Axedale solar PV plant.
projects to bring cheaper electricity to 260,000 barrels of oil per day in western Closer to home, Ayala continued to show
Sulawesi and Lombok. Kazakhstan’s Tengiz and Korolev oil fields. strength in the primary and secondary
Meanwhile, the bank made a strong At closing, Chevron, ExxonMobil, state oil market. AC Energy is developing 2 solar
play into India’s renewables market by and gas company KazMunayGas and Lukoil plants, with a combined capacity of up to
financing these projects: Softbank Energy’s subsidiary LukArco owned Tengizchevroil. 150MW, in central Luzon’s Pampanga and
600MW solar, Engie’s 200MW Raghanesda BDO reviewed a range of financing Zambales provinces.
solar and KKR’s acquisition of 130MW of documentation, including common security In the secondary market, AC Energy
operating solar assets. agreement, bond indenture, commercial acquired shares in Ingrid Power to develop
While the bank continued to grow its bank facility agreements, most with separate the 300MW diesel-fired project in Pililla
Australian renewables book, SocGen was documents from Chevron and ExxonMobil. Rizal. Project company Ingrid is developing
a strong backer of a strategic gas-fired BDO’s prior experience on the original the 2x 150MW diesel engine power plant
power project in Bangladesh with financing upstream project, working with JP Morgan to supply peaking and reserve power to
for the 718MW net CCGT power plant in as financial adviser, allowed the company to the Luzon grid. A subsidiary of AC Energy
Meghnaghat. untangle the bureaucratic requirements to partnered on the project with Axia Power
“I too was impressed by the diversity of their support a project in Kazakhstan. Holdings Philippines, a subsidiary of Japan-
portfolio,” added another judge. “From Taiwan’s BDO provided financial model audit based Marubeni.
first floating solar and the massive Ichthys support during a 3-month period, which “Ayala is making significant inroads in
LNG and Roy Hill iron mine refinancings assisted the upstream operator in securing not only greenfield investments but also
to Taiwan offshore wind and India’s solar additional senior debt financing of about acquisitions,” said a judge. “This balanced
portfolio financing markets, SocGen had an $30 billion to fund the remaining capital approach bodes well for their pan-Asia
impressive mix of markets and sectors.” expenditure. growth strategy.”

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62
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific public sector award


Government of Indonesia
Our team of Asia-based independent
judges awarded the Asia Pacific public
sector award to the government of
Indonesia.
This new category gave the judges a
lot to talk about. The initial vote was split
between two choices. The judges discussed
further and … Government of Indonesia
emerged as the winner. A key reason the
judges selected the Indonesian government
is based largely on the direction it is Cooperation and United States International Tinggi – Padang, Pekanbaru – Bukit Tinggi,
heading. Development Finance Corporation. Indralaya-Muara Enim, Lubuk Linggau-
“I’m thinking Indonesia because of its The SWF will focus on strategic sectors, Bengkulu, and Sigli-Banda Aceh.
efforts around asset recycling and the including infrastructure, roads, ports, The government has also been supportive
master fund,” said a judge. “It’s a good time tourism, agriculture, and other key sectors in of the private sector’s involvement in the
to signal that the government is starting to Indonesia. roads sector.
work in the right direction.” The government has also been examining Japanese strategic investors closed their
Indonesia’s sovereign wealth fund – ways to monetise its extensive network of $35 million acquisition of a minority equity
Indonesia Investment Authority (INA) – has toll road assets.” interest in an Indonesian toll road operator.
garnered some $20 billion in commitments. “Asset monetisation really comes Metro Pacific Tollways Corp sold 10.32%
The government established INA under on board big time,” said a judge. “The equity interest of Margautama Nusantara to
the Job Creation Law, an omnibus law government is putting their money where a Japanese consortium comprising West
that revised more than 70 existing laws in their mouth is including toll roads. Nippon Expressway, Japan Expressway
Indonesia, enacted by President Widodo in In May 2020, Indonesian state-owned International Co, and Japan Overseas
November 2020. Hutama Karya issued $600 million notes, Infrastructure Investment Corporation for
Commitments to the SWF are from with proceeds to be used for the 2,765km Transport & Urban Development.
United Arab Emirates, Canadian pension Trans-Sumatra toll road in Sumatra. The “The signal is to encourage Indonesia to
fund CDPQ, Dutch pension fund APG, proceeds will be used for the completion of double down,” added a judge. “It’s walking
Macquarie, Japan Bank for International 6 sections of the road: Binjai – Langsa, Bukit the right path.”

Asia Pacific ratings agency of the year


Fitch Ratings

The award for Asia Pacific ratings agency of issuer’s debut issuance in the global bond
the year has been won by Fitch Ratings. “Of all three rating agencies, markets. That transaction won Asia Pacific
Issuers last year relied on Fitch’s timely, Best Geothermal deal of the year.
in-depth credit views and updates about the user engagement of Fitch Fitch also allowed market players and
Covid-19. While the firm published more than has been by far the best.” investors to have a more holistic view
640 project finance-related research pieces, and make a more informed decision on
many focused on the pandemic, including the issuing group. It rated Barito Pacific,
the changes that could permanently alter the issuer’s parent, and another related
the infrastructure landscape and Asia Pacific renewable power project under the group
seaports stress tests. It rated all Indian renewable entities Star Energy Geothermal Wayang Windu.
“In terms of recovery ratings, Fitch is that issued in 2020, including a financing The ratings agency’s coverage of Delhi
being precise in its infrastructure and project vehicle’s 144A/Reg S $325 million green International Airport’s $150 million tap
finance methodology, which is great,” said a notes due 2024 that is using the proceeds issuance showed Fitch’s capabilities
market insider. to subscribe to India rupee non-convertible across sectors. The operator has a 30-year
Fitch covered 100% of first-time cross- debentures issued by a restricted group of concession on India’s largest airport by
border Asia Pacific transactions. It also ReNew Power, an influential developer in passenger traffic.
provided national ratings to infrastructure India’s renewables market. “I have to say this, the amount of work
and project finance issuers. Fitch’s rating of Star Energy Geothermal’s Fitch has put into keeping investors
As the incorporation of ESG in project $1.11 billion green notes increased informed on Covid-related topics, be it
financing matures, Fitch’s ESG coverage the transparency of the issuer’s credit rating actions or changes in growth forecast,
delved into all 325 infrastructure and project among bond investors. The coverage was etc., has been really good,” said a market
finance issuers in 2020. particularly useful because of the unique participant. “Of all three rating agencies, the
Its Indian market coverage was also project financing structure and relatively user engagement of Fitch has been by far
formidable. long tenors of the instruments for the the best.”

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IJGlobal Awards 2020 Asia Pacific

Asia Pacific technical adviser of the year


Mott MacDonald
The award for Asia Pacific technical diligence to achieve financial close.
adviser of the year has been won by Mott The winner of the Asia Pacific Offshore “Akita set a precedent in many
MacDonald. Wind deal of the year, the project is the first
“Consistently strong performance over of a series of “ports & harbour” offshore wind
ways including specific risks
the years,” said a judge. “And 2020 was projects being developed with the support of in Japan such as seismic and
no different with numerous projects with a the Japanese feed-in tariff for renewables. tropical storm risks.”
specific focus on renewables and a wide “Akita set a precedent in many ways
regional coverage.” including specific risks in Japan such as
Another judge added: “The team had seismic and tropical storm risks,” shared a
quite a few projects, quite big and different judge. “Given the forthcoming auctions and
types of projects, mainly renewables.” ambitious offshore wind capacity target the Vietnamese currency, divided into a 5-year
Mott advised on Japan’s first commercial government has set of 30-45GW by 2040, tranche of D400 billion ($17.3 million) and a
scale offshore wind project – the 65MW Akita this first precedent’s role in standard setting D2.15 trillion, 15-year tranche.
Port and 80MW Noshiro Port offshore wind is very meaningful.” The project bond is understood to be
farms. A consortium of Japanese companies, Mott also advised on the multifaceted the first for a renewable energy asset
led by Marubeni, are the sponsors. additional financing of a 150MW solar in Vietnam. It is ADB trust fund Credit
Mott supported the developer – Akita farm in Binh Thuan. An ADB trust fund and Guarantee and Investment Facility’s first
Offshore Wind Corporation – during the Dutch bank ING completed a non-recourse guarantee in Vietnamese currency and the
tendering and procurement phase for wrapped bond and $30 million bank loan longest tenor bond CGIF has ever wrapped.
the offshore balance of plant contract. project financing for the Vietnamese asset. “This category was very competitive,”
The adviser also conducted technical, Hong Phong 1, the project company, said a third judge, “but Mott had the
commercial, environmental, and social due issued a privately placed project bond, in strongest performance in 2020.”

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64
IJGlobal Awards 2020 Africa winning companies

2020

Africa winners
It is with great pleasure that we Winners in the African companies category are:
announce IJGlobal’s winners for African • African financial adviser of the year – Societe Generale
awards for company activity and
• African legal adviser of the year – White & Case
transactions closed over calendar year
2020. • African DFI of the year – InfraCo Africa
Winners in the institutional category • African MLA of the year – Rand Merchant Bank
were voted on by senior figures from • African corporate trust of the year – Deutsche Bank Corporate Trust
across the regional infrastructure and
• African technical adviser of the year – Lummus Consultants
energy community – none allowed to
International
vote in their own business areas – in
what is widely regarded to be the most • African sponsor of the year – Fluence Corporation
independently-judged awards in this
sector.

Congratualtions to all the winners!

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IJGlobal Awards 2020 Africa

African legal adviser of the year


White & Case
White & Case enjoyed considerable support transactions, their challenges, unique
from the IJGlobal independent panel of aspects and complexity of the funding An excellent submission
judges who voted the international law firm structure. It is clear White & Case added
African Legal Adviser of the Year for 2020. significant value towards making these
clearly setting out the key
The firm was judged purely on its transactions a success. I particularly liked transactions, their challenges,
submission against all legal advisers active the Compagnie des Bauxites de Guinée unique aspects and complexity
across financial closes for infrastructure and MUOA expansion financing in respect of
energy transactions in the last calendar the pro-active contribution towards incentive of the funding structure.
year. structures built in to promote conservation
One judge said it had a “really interesting efforts at the national park.”
selection of deals” adding that “getting any A good number of the transactions that LNG Train 7; ground breaking transportation
project finance done in Africa is hard, so White & Case acted on receive awards in projects: Cairo Monorail PPP and expansion
having so many deals is impressive”. the coming pages. of the multi-user rail corridor for the CBG
Another said that “White & Case Mukund Dhar, head of the White & Case Bauxite mine in the Republic of Guinea;
demonstrated a real depth of expertise Africa group, said: “To be named African and a highly impactful power project – the
and led in complex and challenging legal adviser of the year is an outstanding 390MW Atinkou CCGT in Côte d’Ivoire.
transactions” and one more saluted a achievement and a reflection of the depth “Our team is continuing to advise on
“significant scale of projects” including of our team. the largest and most innovative projects in
“complex LNG projects which have been “In 2020, White & Case advised on more Africa. We work on complex cross-border
difficult to close from a legal perspective”. projects in Africa by value than any other projects across Africa day-in, day-out which
Yet another judge said: “An excellent law firm including two of Africa’s largest is why the market turns to White & Case to
submission clearly setting out the key projects: Mozambique LNG and Nigeria get deals done.”

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IJGlobal Awards 2020 Africa
2020

African financial adviser of the year


Societe Generale
As you will likely have noticed from perusing
the pages of this (virtual) magazine, Societe
Generale has had a good year with a hearty
haul of peer-review IJGlobal Awards to
recognise its achievements.
Among its haul of silverware (Perspex, but
let’s not be pedantic) the French bank has
been voted Financial Adviser of the Year for
Africa, winning against lively competition
and an impressive shortlist.
One of the judges said of Societe
Generale’s 2020 performance in Africa:
“SG stood out in terms of strength of
transactions advised on, complexity and
multiple stakeholders involved.” completion of the sale to Woodside, the Societe Generale Corporate & Investment
Another justified the selection of SG, operator of the field. Bank, said: “The bank’s continued
adding that it played a key role on the The sale covers the participating interest commitment to Africa remains unequivocal
“single largest FDI investment to date in in the Rufisque offshore, Sangomar offshore as demonstrated through our leadership
Africa with a project financing larger than and Sangomar deep offshore production in closing several large-scale energy
the GDP of Mozambique”. sharing contract which includes the financings creating new benchmarks for the
One of the key transactions that Societe Sangomar Field. African continent and beyond.
Generale acted on as financial adviser Work on the Sangomar field development “Using a combination of our industry
(where it was also mandated lead arranger) – which contains both oil and gas – knowledge, cultivating shared visions with
was the $250 million senior secured commenced in early 2020 and first oil key project stakeholders and sheer tenacity
corporate facility in favour of Cairn Energy Plc. production is targeted in 2023. And this has allowed us to constantly push the
This facility was arranged to enable deal forms part of a wider story around the envelope on the continent and ensure Africa
Cairn to fund its ongoing share of capital company and SG’s involvement. gets continued access to both long-term
expenditure obligations in respect to Katan Hirachand, co-head of the London and competitive funding to fuel economic
the Sangomar Field development until energy advisory and project finance team at growth.”

African DFI of the year


InfraCo Africa

IJGlobal’s independent panel of judges ideas. It is hard work and can be a bumpy
voted overwhelmingly in favour of InfraCo demonstrated ride, but ultimately we believe that our
InfraCo Africa to win this year’s award for work draws private sector financing into
development finance institution for its
strength in bringing in funding sectors, countries and projects that it
activity in 2020 across the African continent. for difficult sectors/regions, wouldn’t otherwise have considered.
The judges were highly complimentary demonstrating what is By working together we change lives,
of InfraCo, crediting it for “true innovation” promoting economic development whilst
and the ultimate compliment for a DFI of expected of a DFI. also contributing to the fight against climate
“crowding in new investors”, while also change.”
providing a “solution for local currency which He adds: “Covid-19 has made this year
is so important to get private money into innovative product that leverages the money more challenging than most, but it has
emerging market infra financing”. available well”. also shown us just how much more work
One judge said: “InfraCo demonstrated InfraCo Africa is part of the Private there is to be done to scale access to safe,
strength in bringing in funding for difficult Infrastructure Development Group (PIDG), inclusive infrastructure in sub-Saharan
sectors/regions, demonstrating what is managed as a private company and Africa. So we will keep innovating. We’re
expected of a DFI.” Another added that it funded by governments in the UK (FCDO), supporting the first power broker (Africa
was achieving “what DFIs should be doing – the Netherlands (DGIS) and Switzerland GreenCo) in Zambia, the expansion of
trying to bring social benefit across a range (SECO). electric vehicles (Ekorent) in Nairobi,
of sectors by mobilising private capital”. Gilles Vaes, chief executive of InfraCo, piloting commercial-scale batteries in
The overwhelming sense of the says: “InfraCo Africa consciously works Chad and Malawi, unlocking local currency
judging session was that InfraCo has ‘on-the-frontier’ pioneering new solutions, institutional investment in Nigeria and
had a significant impact on the African investing in challenging markets and Kenya and we are continuing to push
infrastructure and energy sector, addressing always looking for opportunities to recycle boundaries in the deployment of mini-
the financing gap and providing “an our experience and push forward new grids.”

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IJGlobal Awards 2020 Africa
2020

African MLA of the year


Rand Merchant Bank
The independent panel of judges reviewing pushing to successful close deals that make in sub-Saharan Africa.”
African entries to IJGlobal Awards 2020 a significant impact on the ground and are Siyanda Mflethelwa, senior transactor
were impressed by the performance of transformative to the regional economy. at RMB Infrastructure Sector Solutions,
Rand Merchant Bank, awarding it MLA of Beyond that, they prove once again that adds: “The BeitBridge project comes at a
the year for the region. Africa is a continent where international time when the region is in great need of
One judge singled RMB out for its companies can do business. hope. This project is expected to catalyze
involvement in BeitBridge PPP saying “the Dario Musso, co-head of RMB not only economic growth but also greater
border post deal is unusual and innovative” Infrastructure Sector Solutions, says: “This regional trade. RMB is proud to have led a
and another adding the lender demonstrated IJGlobal African MLA of the Year 2020 diverse group of financing and investment
“creativity that showed it deserved the award”. award and the deal awards for BeitBridge institutions through financial advisory and
Another judge said: “I particularly liked and Bokpoort further cement RMB’s position lead arranging for a remarkable outcome for
the quality of submission that set out key as the leading infrastructure project financier the region.”
challenges for each project and how RMB
dealt with them. The showcased projects
were social infrastructure, which can be
more complex to deliver in emerging
markets on account of currency issues and
ability to mobile capital. In this respect,
the BeitBridge Border Post Modernisation
Project in Zimbabwe stood out.”
Yet another celebrated RMB’s “diversity of
transactions” in a “particularly difficult region
with successful results”.
RMB centred its submission on two key
deals that closed in the judging period…
and another it should definitely submit for
the 2021 awards!
The key transactions were Beitbridge
Border Post Modernisation PPP and
Bokpoort CSP – each of them winners
in their relevant regional categories that
appear in the next section.
On both these transactions, RMB played a
key role in bringing lenders to the table and

African corporate trust of the year


Deutsche Bank Corporate Trust

An editorial award has been made to In Europe and Africa, Deutsche Bank that is affordable, reliable and diverse from
Deutsche Bank for the role it played covers the full spectrum of assets from traditional energy sources. Dubai-based
in corporate trust across the African renewable energy through to traditional solar developer Phanes Group secured $67
infrastructure and energy market over the power, transport, oil and gas, telecoms, million funding for a 46MW solar power park
course of the 2020 calendar year. water and waste sectors – with an added Nkhotakota and it closed in April 2020.
Deutsche Bank’s corporate trust team focus on sustainable financing. Jason Connery, head of trust and
supported 51 transactions valued at The key deals it worked on in Africa agency services (TAS) EMEA for Deutsche
more than $20 billion of project and were Nigeria’s LNG Train 7 and activity with Bank, says: “We’re delighted to have
infrastructure financing, 66 deals for close Phanes Energy Renewables Nkhotakota been named corporate trust provider
to $83 billion of corporate debt issuances Limited in Malawi. of the year in Africa. Trust and agency
across the energy and infrastructure The Nigerian deal is well known to services administers a wide spectrum of
sectors and serviced clients and projects in IJGlobal readers, but the Malawian infrastructure transactions. We proudly
12 different countries across the Americas, transaction saw Deutsche Bank Trust and supported the first ECA-backed hybrid
EMEA and APAC. Agency Services act as administrative corporate financing for the development
The corporate trust team offers a full agent, account bank and collateral agent of a liquefied natural gas project in Africa.
suite of services, from depositary bank, on a solar project designed to stop rolling Supporting infrastructure projects is an
escrow agent, trustee, paying agent, to blackouts across the country. important focus for TAS and we look
administrative agent, collateral agent and This project provides power to the most forward to facilitating similar transactions in
intercreditor agent. vulnerable populations through a source the region.”

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IJGlobal Awards 2020 Africa
2020

African technical adviser of the year


Lummus Consultants International
The editorial award for technical adviser Lummus Consultants International has operational improvements.
of the year for developments in the 2020 closed more than 700 transactions worth Lummus president Susan Garven said:
calendar year has been won by Lummus more than $400 billion in the past 20 years. “Lummus Consultants is honoured to be
Consultants International. It is an independent advisory outfit with a named IJGlobal Technical Adviser of the
Lummus Consultants International is a reputation for delivering superior guidance that Year for Africa and the Global Technical
premier technical adviser active on deals combines deep commercial understanding Adviser of the Year for 2020.
around the globe, providing independent with technical strength and project experience. “Both are very prestigious awards, especially
engineer reviews and technical due It provides independent consulting and in a year with such huge challenges.
diligence for $52.596 billion in deals in advisory services that span business, technical, “To have major financial closings in the
2020. Lummus Consultants was the top strategic management and regulatory issues oil and gas and power sectors is a credit
ranked Technical Adviser in the 2020 for the power, oil and gas, petrochemical, to both the lenders and sponsors. We are
IJGlobal League Tables worldwide. refining and government segments. excited about continuing to participate in
Lummus Consultants totalled 14 deals From offices in Houston, Boston, Denver, the successful financing of Africa’s energy
in 2020 spanning the oil and gas, power, London, Dubai and Singapore, it supports projects and the expansion of new green
energy storage, and hydro sectors in North clients in all aspects of project selection, energy initiatives around the world.
America, Middle East North Africa, Asia development and execution, including “Providing useful, knowledgeable
Pacific, and Sub-Saharan Africa for primary feasibility analysis, bidding, contracting, expertise to our clients has always been
financings, refinancings, asset acquisitions, financing, construction and operation our number one goal, making this award
and additional facilities. as well as identifying organizational and particularly gratifying.”

African sponsor of the year


Fluence Corporation

The shortlist for the IJGlobal Africa Sponsor


of the Year Award 2020 was compiled
by the IJ editorial team and presented to
the regional judging team – all of them
seasoned professionals who have been
active working on deals on the ground.
They chose Fluence Corporation to win
the award with judges being particularly
impressed by the €165 million Lagune
Aghien Water Treatment Plant – a freshwater
reserve near Abidjan, Côte d’Ivoire.
The judging panel was “impressed by
the social and green impactfulness [sic]
of the water project”, with one adding that
“freshwater treatment projects are rightly a
priority” while another one chipped in with:
“that was a tough project to deliver… and
it’s not a fossil fuel project!”
Another judge tipped a hat to Fluence
Corp for its “focus on topical areas” adding
that “providing water treatment plants in
such regions is something that should be
supported and backed”.
Meanwhile, one judge gave Fluence (2020), but the conditions precedent near Abidjan and is dense with algae and
credit for being a “disruptive company had not been met at that time due to the other contaminants. Local construction
making a real difference in the African pandemic. Finally, all CPs were met on 4 and commissioning of the 150,000m3/day
context”, with another adding “Lagune November 2020. The sole lender on the surface water treatment plant is anticipated
Aghien Water Treatment Plant is a great deal is Israel Discount Bank, with coverage to be completed in early 2023.
example of successfully delivering a from Israel’s ASHRA and Italy’s SACE. Fluence chair and chief executive officer
pathfinder deal in a difficult financing The project is designed to treat surface Richard Irving said at the time of financial
environment, in an essential infrastructure water from Lagune Aghien to help supply close: “Once commissioned, the project
sector.” the fresh water needs of the country’s will provide sufficient capacity to meet the
Financial close on Lagune Aghien Water largest city, Abidjan. Lagune Aghien is fresh water needs of more than one million
Treatment Plant was announced in January Ivory Coast’s largest freshwater reserve people.”

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69
IJGlobal Awards 2020 MENA winning companies

2020

MENA winners
Having drawn together a team of Winners in the MENA companies category are:
experienced industry players – all of • MENA MLA of the year – BNP Paribas
whom have been working in the Middle
• MENA financial adviser of the year – Cranmore Partners
East and North African market for many
years – to judge the IJGlobal awards, • MENA sponsor of the year – Marubeni Corporation
they met earlier this year for our virtual • MENA legal adviser of the year – Norton Rose Fulbright
Judgment Day. • MENA model auditor – Mazars
They were hugely impressed by the
• MENA DFI of the year – European Investment Bank
quality of submissions and the results
that are highlighted here and in the • MENA public sector award – EWEC
following pages are thanks to the effort • MENA bond arranger – Citi
they put in, identifying the key players • MENA ratings agency – Fitch Ratings
and giving credit where credit is due.
• MENA technical adviser – Lummus Consultants
We would like to extent our thanks to
the judges and all who submitted.

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IJGlobal Awards 2020 MENA
2020

MENA MLA of the year MENA financial adviser of the year MENA legal adviser of the year
BNP Paribas Cranmore Partners Norton Rose Fulbright
BNP Paribas enjoyed a successful year of Norton Rose Fulbright has won the Legal
activity across the MENA region working Adviser of the Year award for MENA based
on some of the key transactions to reach on a compelling submission that outlined
financial close in the judging period, winning Cranmore Partners was voted MENA winner a series of impressive deals to have been
over the awards committee with an excellent of the IJGlobal Financial Adviser of the brought to financial close in the 2020
submission. Year Award for 2020 at the regional virtual calendar year.
It was a close-run thing, but BNP tipped judging session earlier this year. The independent panel of judges was
the scales with one judge saying the lender The independent panel of judges lauded impressed by NRF’s performance with one
played “strong leadership roles in various Cranmore for “deep skill and quality services”, going as far as to say the international law firm
deals” and another admiring it for “early deal recognising a “growing number of deals won” had “strong performance and iconic deals”.
structuring capabilities, flexibility and creativity”. and its “impressive stable of clients from a Another judge added: “Although
The comments on Judgment Day for the new comer perspective when compared to competition was fierce, NRF advised on
MENA section of IJGlobal Awards 2020 the Big 4 and international banks”. some of the highest profile and most
were all positive towards the French bank Another judge said of Cranmore that complex transactions in the region and
with one saying: “BNPP had major roles on it was an “up-and-coming adviser, very appeared to be the most impressive in
all the leading deals in the market this year. aggressively engaging in the MENA market”, terms of breadth and experience.”
In a tight competition the judges felt that adding that the firm “has advised on some NRF did indeed work on some landmark
BNPP deserved the top spot.” very competitive deals”. 2020 deals in the region having acted
Meanwhile, another judge said: “2020 was as international legal adviser to the
a very tough year due to the pandemic, but senior lenders and equity lenders on
BNPP had major roles on all Cranmore was a stand-out performer under the award-winning DEWA V in respect
the leading deals in the market the circumstances and managed to keep up of the development and financing (both
a successful rate of financial closings.” conventional and Islamic) related aspects
this year. Yet another added: “Cranmore is growing of the 900MW PV fifth phase of the
in strength year-on-year and in 2020 Mohammed bin Rashid Al Maktoum Solar
While another gives a nod to the competition demonstrated through their innovation and Park. The Project will be co-owned by ACWA
saying it was “neck-and-neck, but BNP had creativity – both in terms and deal structures Power, Gulf Investment Corporation GSC
the edge for its diversity in client base”. – why they are rapidly becoming the financial and Dubai Energy and Water Authority.
BNPP arranged a notable renewable adviser of choice for complex deals.”
energy transaction in Abu Dhabi, acting Despite its youth, Cranmore made a
as sole lead bank, sole bookrunner and strong impact in 2020, working on 19
documentation bank for the second solar PV mandates in MENA, bringing three landmark
project in the Emirate, which was the world’s projects financial close, in all of which
largest single-site solar PV project with a Cranmore was sole financial adviser to the
capacity of 2.1GW. project sponsors.
The bank also stands out for high Yusuf Macun, founder and managing
underwritten amounts, including on partner at Cranmore, said: “It is an honour The NRF team also acted as sponsor
Fujairah 3 in the UAE, a greenfield 2.4GW for us at Cranmore Partners to receive the counsel to the consortium of EDFR and Jinko
independent power project that will give a MENA Financial Adviser of the Year Award. Power on the 2GW Al Dhafra Solar PV IPP in
significant boost to the local power market; “This accolade consecrates our team’s Abu Dhabi; and advised JBIC and a syndicate
and for supporting key players in the region relentless efforts to provide best-in-class of international lenders on the $957 million
including Marubeni and Mubadala. independent financial advice to our clients, financing of Fujairah F3 IPP in the UAE. Both
BNPP played a key role in arranging a major a commitment we made when creating of these are also award winners.
project, Galaxy, regarding the acquisition of Cranmore five years ago. We thank our Charles Whitney, head of energy for
a minority stake in ADNOC Gas Pipelines, clients for their continued trust on this EMEA at NRF, says: “It is a privilege for us to
which has usage rights over strategic gas journey.” be recognised with this prestigious award.
assets owned by ADNOC. The assets will He added: “Notwithstanding the Our team closed a number of high-profile
maintain domestic gas consumption and challenges, 2020 has been a strong year and complex project financings in the
meet Abu Dhabi’s objectives to become for Cranmore, with some landmark financial region, working for top tier developers and
gas self-sufficient and net exporter. On this closings - including Fujairah 3, Enerjisa lenders in the power and renewables sector.
transaction, the French bank acted as senior Refinancing, Scaling Solar Uzbekistan, “This award is recognition of the team’s
MLA, hedge provider and bookrunner. enabling iconic infrastructure investments hard work in implementing our strategy
Roland Kahalé, head of BNPP O&G in MENA, and significant growth, with new of being a go-to law firm for energy and
project finance for EMEA, said: “It was a colleagues joining us in Abu Dhabi, Delhi, infrastructure projects in the Middle East and
very active year for BNPP in MENA where Istanbul and Singapore. North Africa. We look forward to continuing to
we demonstrated our strong commitment “Looking forward to an exciting year support our clients through the impact of the
to support both the regional champions and ahead, this award strengthens our resolve energy transition on the Middle East energy
our global clients from Europe, APAC and in continuing to deliver solutions for further market and positioning ourselves to be a
the Americas in their partnerships and joint investments in sustainable infrastructure.” contender for the award next year.”
investments in the GCC.”

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IJGlobal Awards 2020 MENA

MENA sponsor of the year


Marubeni Corporation
Marubeni Corporation fought off strong major transactions in the region to have
contenders to win the Sponsor of the reached financial close in the 2020 calendar Marubeni has made great
Year category for the MENA region in the year – Fujairah F3 IPP, Al Kharsaa PV IPP,
IJGlobal Awards 2020. and REPDO Round 2 Rabigh Solar PV IPP.
strides during the last 12
One judge raised a hat to its 2020 On Fujairah F3, Marubeni was the sole months to make its mark on
performance, saying: “Marubeni takes a foreign shareholder and developer on the the market, and it has been
more considered approach to winning deal that reached financial close in June,
deals. It achieves more diversity and has having been responsible for all aspects of very successful.
a stronger ability to play along the project the transaction including financing and EPC.
value chain, from investor through to design Similarly, Marubeni was lead developer
and construction.” on Al Kharsaa which reached financial close in the region’s IPP business, to minimize the
Another adds that the company has in July having taken lead on all aspects of tariff within the regulations of the tender.
“made great strides during the last 12 the transaction including financing and EPC. A robust financing scheme was created
months to make its mark on the market, Meanwhile, on the Rabigh deal Marubeni by procuring top-notch commitments from
and it has been very successful”. This is was lead developer in a consortium with lenders, as well as a technical proposal
supported by another who says: “Marubeni Al Jomaih Energy and Water Company. utilising the latest flagship technology.
has lifted its game in 2020 and played a The consortium submitted a proposal in a Marubeni’s knowledge of O&M of other PV
market-leading role in the MENA region, competitive tender for the REPDO Round plants in the region and strong connections
showing very deep experience and 2 Category B projects, resulting in its within the Kingdom of Saudi Arabia helped
exceptional reach, teaming up with strong shortlisting for the 300MW Rabigh project. build an ambitious, yet achievable, strategy
partners.” Marubeni made the bid possible by taking in consideration of stringent local content
Marubeni’s victory was centred on three advantage of its experience and resources restrictions of the tender.

Leading the way


in Developing a
Sustainable Future
As a leading global energy and infrastructure project developer, we are proud to have contributed to
the needs of each customer and host country in every project we have developed. With our experience,
expertise and innovative ideas, we look forward to delivering projects such as the landmark Noor Abu
Dhabi Solar Power Project shown here to achieve a more sustainable future for the region and the world.

www.marubeni.com

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72
IJGlobal Awards 2020 MENA
2020

MENA model auditor of the year MENA DFI of the year MENA public sector award of the
Mazars European Investment Bank year – EWEC
The IJGlobal Model Auditor of the Year 2020 It came as something of a surprise at the The winner of the IJGlobal Public Sector
goes to Mazars with one of the independent judging session to witness a revolt that saw Award for the Middle East and North Africa
judging panel describing it as “the stand-out the panel shun the organisations one would is Abu Dhabi-based Emirates Water and
contender this year based on experience, normally expect to see win an award for DFI Electricity Company (EWEC).
deals supported and visibility in the region”. involvement in the MENA region, favouring In the interest of full transparency, the
At the virtual judging session staged instead an institution they believe had IJGlobal editorial team compiled most –
earlier this year, another of the judging greatest impact. not all – of the MENA public sector award
panel said Mazars was “most frequently The majority of judges in the MENA panel submissions to increase competitive
seen in market” and gave it kudos for having threw their weight behind the European tension in this sector… and this was one of
“submitted the most complicated of the Investment Bank, celebrating “a truly IJ’s submissions.
transactions listed – Galaxy”. impressive set of deals this year both in We made this entirely clear to the
terms of geography and sector” adding it judges and they were swayed by the kind
Mazars submitted the was “so good to see EIB’s support right words we wrote about the organisation
across the region”. combined with their own local market
most complicated of the Another judge said they were “impressed knowledge, with one judge expressing they
transactions listed. with the breadth of support to the were “impressed with EWEC’s approach to
development of projects across the region” encouraging innovative financing structures
Meanwhile, another judge said of Mazars: with one celebrating “strong cross-sector for their projects”.
“It has been present on most transactions catalyst support for investment into Another judge said: “EWEC
we have been on, and the two transactions sustainable infrastructure”. demonstrated exceptional market
submitted were more complex than most. The submission highlighted the role that engagement in 2020, seeking to diversify
Mazars has a strong market position.” the EIB played on an impressive slew of the funding options for infrastructure and
In the MENA region Mazars acted on five deals across the Middle East and North energy projects by developing a financing
transactions to make it to financial close in Africa. structure that encourages early refinancing
the 2020 calendar year, deals with capital In Morocco, the EIB played a significant into the bond market.”
value of around $6 billion. To achieve this, role in the financing of Noor Middelt The judge added EWEC was: “Easily the
it leveraged more than 50 dedicated model I – lending $110 million (the second stand-out performer in the public sector for
audit professionals based in London, New largest ticket on the transaction) for the financial innovation and transparency.”
York, Toronto, Sydney and Delhi. development of the 800MW hybrid CSP/PV Yet another judge said: “EWEC
One of its key deals in the region was the solar plants. continued to innovate, for example by
refinance of the ADNOC gas pipeline assets Meanwhile, its activity in Egypt was more taking refinancing risk and being open to
portfolio on which Mazars provided model strategic (admissible for awards like this hard mini-perms, while also now venturing
audit services to the equity holder – Galaxy one) where in February 2020 the EIB signed into new sectors such as waste-to-energy.
Pipeline Assets BidCo. three agreements totalling €122.7 million – In addition, it had two amazing transactions
This project brought a number of Europe’s two grants and one loan – for the upgrade close in 2020 – F3 and Al Dhafra.”
leading lenders in as banking partners, of three water and rail assets in the country. EWEC drives the planning and
while at the same time expanding Mazar’s For Jordan, the EIB in early December forecasting, purchase and supply of water
relationship with some of the existing lent €218.5 million to the Ministry of Water and electricity in the Emirate of Abu Dhabi
partners through this refinance. and Irrigation to support its €350 million and beyond and is highly regarded for its
Another landmark transaction Mazars water sector overhaul. success.
worked on was the Umm Al-Hayman On being informed of winning the It is charged with leading change in the
Wastewater Treatment Plant for which it IJGlobal award, EIB president Werner Hoyer energy sector with a focus on sustainability
provided model audit services to the equity said: “The European Investment Bank is and renewable technologies. EWEC also
provider WTE Wassertechnik. committed to accelerating high-impact performs its role as the sole procurer of
This project is one of the world’s largest investment that harnesses best practice water and electricity to drive the short-
wastewater projects and is being built to to deliver sustainable development and and long-term balancing of supply and
dispose of the wastewater from southern improve lives and opportunities for millions demand.
Kuwait and to supply agriculture and of people. EWEC has a mandate to partner
industry with process water. “Being awarded IJGlobal MENA DFI with world-class developers to ensure
WTE will deliver a complete package of the Year reflects the shared focus of sustainability through long-term water and
from wastewater collection, treatment and project promoters, co-investors and the EIB electricity purchase agreements, and signs
distribution to energy generation, composting colleagues covering the region. bulk supply tariff sales agreements with
and plant operation – as a one-stop solution. “This award – based on feedback distribution companies.
Jerome Brice, global head of model audit from our infrastructure financing peers – The high point of 2020 was achieved
at Mazars, said: “We are proud to have recognises how this hard work is unlocking when Marubeni closed on the $1.14 billion,
played our part in assuring the robustness of transformational investment in new 2.4GW Fujairah 3 CCGT IPP project in
award-winning projects across the globe. We hospitals and schools, improving access Qidfa, located in the Emirate of Fujairah.
are particularly active in the MENA region, to clean water and sustainable transport The project financing is backed by a $941
enabling economic transition in the region by and providing Covid-19 vaccines through million 7-year soft mini-perm deal.
supporting the development of amazing new COVAX.”
energy and infrastructure assets.”

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IJGlobal Awards 2020 MENA
2020

MENA bond arranger of the year MENA ratings agency of the year MENA technical adviser of the
Citi Fitch Ratings year – Lummus Consultants
The decision over which institution was to The editorial award for ratings agencies in The editorial award for Middle East and
win the MENA Bond Arranger of the Year the Middle East and North Africa was won North Africa technical adviser of the year
award saw a straight shoot-out between by Fitch Ratings which had an exemplary for 2020 has been awarded to Lummus
two organisations that worked on the same 2020, playing a critical role in the region Consultants.
deal – Galaxy. over the course of the calendar year. That adviser wins the coveted award
This made the decision all the harder In its submission for the award, Fitch based primarily on the role that it played on
for the independent panel of judges, but points to an “unprecedented period of two key transactions in the MENA region –
they were finally swayed by Citi given that uncertainty” across the MENA region during Fujairah 3 CCGT in the United Arab Emirates
its “bond franchise has always been very the judging period. and Leviathan Natural Gas Field Bond
strong” and based on its “involvement in Fitch points out in the submission: Facility in Israel.
not only the original bond offering, but also “There was a greater need than ever for Fujairah 3 is a 2.4GW combined cycle
the subsequent refinancing, which was clarity and insight on the impact of the gas turbine power project and deploys
impressive”. crisis on the world’s credit markets. Credit Mitsubishi JAC-class turbines which involved
One judge was even-handed in the rating agencies have a key role to play by the arranging of $900 million of term loans.
comments (though voted for Citi), saying: providing timely, insightful and transparent The plant is being delivered through a
“Both banks did an outstanding job on the commentary on the credit implications DBFOM structure underpinned by a PPA
same deal, but Citi had completed more key of the coronavirus crisis on debt issuers. with the Abu Dhabi procurer – Emirates
roles in the transaction listed.” Meanwhile This supports efficient capital markets by Water and Electricity Company (EWEC).
another saluted the “comprehensive bond helping market participants make informed Lummus Consultants provided the critical
market coverage role played by Citi”. decisions.” technical assessment component of the
The bond arrangers on Galaxy And this spike in activity resulted in Fitch financing through the evaluation of the
successfully priced a $4 billion multi- enhancing its reputation as a thought leader industry leading, high efficiency JAC-class
tranche 144A/RegS bond offering on behalf on the MENA infrastructure and project gas turbine technology.
of Galaxy Pipeline Assets Bidco Limited finance sector, publishing more than 48 Meanwhile on the Israeli transaction,
on 27 October 2020. Citi acted as joint special reports and other non-rating related Delek Group announced a $2.25 billion
global coordinator, joint bookrunner, joint commentaries. bond offering for Delek Overriding Royalty
refinancing adviser and fiscal and paying Fitch increased its coverage of the Leviathan Ltd (an SPV) for the Leviathan
agent on the offering. infrastructure sector owing to its willingness Gas Field operations located offshore Israel.
On 10 February 2021 (outside the and ability to evaluate increasingly complex The notes are secured by the overriding
judging period), Citi followed on to the transactions working with a broadening royalty interests in the Leviathan gas field.
inaugural $4 billion issuance and acted as range of issuers across the world. In MENA, Lummus Consultants was the independent
joint global coordinator, joint bookrunner Fitch rated 104 issuers/transactions, adding engineer for this deal, building on reviews for
and fiscal and paying agent on the $3.92 23 ratings to its portfolio. the initial and follow-on financings for several
billion multi-tranche 144A/RegS senior Cherian George, global head of project phases, providing technical risk
secured offering. Proceeds were used to refi infrastructure and project finance at Fitch assessments focusing on the key risk areas
the remaining amount outstanding under Ratings, said: “The infrastructure and project of design, schedule, construction logistics,
the initial acquisition loan. finance space continues to evolve with regulatory issues, capital cost, institutional
One of the primary highlights of the bond new structures being applied to traditional development, operating performance, and
refinancing were that it was the largest sectors, and new sectors and markets interfaces between jacket and module
infrastructure issuance globally – equal to constantly emerging. The Middle East and fabrication, primary installation, and subsea
$4 billion inaugural issuance by Mexico City North Africa market is no different. installation.
Airport Trust in 2017 (also led by Citi) – and “Credit principles remain the same but Lummus president Susan Garven said:
the largest by a private-sector issuer. unique applications and new circumstances “Lummus Consultants is honoured to be
On a regional level, Galaxy was the demand evolving and critical thinking.” named technical adviser of the year for MENA
largest private sector issuance from the He added: “The MENA market has and the global technical adviser of the year
Gulf Cooperation Council (GCC), the lowest unusual legal and cultural features that for 2020. Both are very prestigious awards,
ever yield-to-maturities achieved by a MENA affects how transactions are structured, especially in a year with such huge challenges.
energy issuer, as well as being the biggest including government ownership and “To have major financial closings in the
debut transaction from EMEA in 2020. influence on strategic decisions. power, water and oil and gas sectors is a
Further, Citi identifies Galaxy in its “This is where Fitch Ratings excels, as we credit to both the lenders and sponsors.
submission as being the largest US Dollar remain intellectually open to breaking down “We are excited about continuing to
denominated, non-mortgaged backed, the risks and mitigants in new structures. participate in the successful financing of
amortizing corporate bond. Together with This is by no means easy as we work with energy storage projects and the expansion
the initial issuance (total of $8 billion), brilliant minds constantly challenging us of new green energy initiatives in MENA
Citi believes this is the largest combined with new ideas but we are up to the task. and around the world. Providing useful,
issuance ever done by a single asset “We are pleased to receive the IJGlobal knowledgeable expertise to our clients has
infrastructure issuer globally in a period of 4 award in recognition of our work in the always been our number one goal, making
months. region.” this award particularly gratifying.”

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IJGlobal Awards 2020 Winning deals

2020

Winning deals

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IJGlobal Awards 2020 Europe winning deals

2020

Europe winners
Winners in the Europe transaction category are:

• Editor’s Choice Europe – • European Hydro Refinancing – HS • European Transport Motorway


Wavemaster Horizon Orka Refinancing – A88 Refinancing
• European waste-to-energy portfolio • European social infrastructure
• European offshore wind – Dogger refinancing – Biogen refinancing district heating –
Bank Wind Farm A and B Coriance
• European energy storage refinancing
• European digital infrastructure (fibre) • European offshore wind refinancing –
– Enerjisa Enerji Üretim
– G.Network fundraising London Array
• European solar refinancing CSP –
• European digital infrastructure refi
Project Helios • European Waste-to-Energy – Protos
for transport comms – Synerail –
GSM-R • European digital infrastructure • European Solar – Kaposvár Solar
refinancing smart meter – Calisen PV Project
• European social infra (health) –
Ankara Etlik Integrated Health Refinancing • European onshore wind – Zeewolde
• European digital infrastructure Wind Farm
• European social infrastructure
education – Espoo Schools refinancing fibre – Open Fiber • European oil and gas – Amur Gas
• European solar refinancing – Processing Plant
• European Transport Mass Transit –
XMU Renovalia – SIX • European Export Finance – Northvolt
• European Transport – A465 PPP • European Port Refinancing – • European Mining – Project Taishet
• European Telecoms Towers – Antwerp Gateway • European Digital Infrastructure FttH –
Phoenix Tower • European renewables portfolio THD Loire-Atlantique
• European telecoms – Project refinancing – Iberwind Portuguese • European battery storage – Northvolt
Astérix wind farm

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Editor’s Choice Europe –


Wavemaster Horizon
Editorial director Angus Leslie Melville singles out a peach of a deal – Wavemaster Horizon
– for the inaugural winner of the IJGlobal Editor’s Choice Award for Europe

Wavemaster Horizon is a deal that brings And so to Wavemaster Horizon, this is a JF Dusch
to mind Dublin Convention Centre PPP of ship finance deal that’s been on our radar
2007 vintage. Now, those of you who know for some time since discussing it over a
Wavemaster are likely wondering how on pint with an old chum at a time when that
earth a rather drab Irish deal (that got into a was a far simpler affair. Now an infra purist
spot of bother a few years back, losing quite might pet lip at this deal winning such
a few folk quite a lot of money) is in any way accolade. I agree it dwells in the realms of
similar to a shipping finance deal. core plus… but it’s terribly interesting and
Well, it’s not so much the convention no mean feat to have brought to financial
centre itself but the fact that it won the close.
IJGlobal European Infrastructure Award for Bibby Marine – via its subsidiary
2007 while I furiously championed a far more Wavemaster Horizon Ltd (WM2Ltd)
interesting deal that had all the hallmarks of – entered into a €40 million ($48m)
a winner – the UK MoD Future Provision of shipbuilding contract with BV Sheepswerf
Marine Services (FPMS) PFI, which sources Damen Gorinchem for a service operations
tell me is performing nicely to this day. vessel (SOV). The vessel was built at the
When announcing the European shortlist Damen Galati shipyard in Romania and was
from the podium at London’s Natural History delivered in autumn 2019.
Museum in March 2008 (fortunately people Horizon is a new class of purpose-built
paid for tables before reality landed with a SOV with walk-to-work (W2W) capability
crash) a cheer went up for FPMS. Agreeing developed by Damen in consultation with
with the sentiment, I had then to announce the offshore renewable energy industry and
the damp squib that was the convention designed to meet the increasing demand for
centre. vessels capable of operating in ever further
FPMS was a particularly interesting off-shore locations.
transaction that involved a fleet of some 110 Bibby entered into a 10 plus 5-year
vessels, procurement of 31 new vessels, charter party with Siemens Gamesa "We love to mix up and diversify
and marine support at major UK naval Renewable Energy (SGRE). It will use the our portfolios by taking on
bases in Portsmouth, Devonport and The vessel to meet service obligations on the
Clyde. The key part of the deal was that the Hohe See and Albatros offshore wind farms
innovative investments such as
lenders’ risk rested on the residual value of some 145km and 150km from the German Wavemaster."
the assets at the end of the contract. coastline.

Horizon is a new class of purpose-built SOV with walk-to-work (W2W) capability

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Chris Hayes The Bibby Team comprised Jonathan Graeme McLellan


Lewis (ex-FD now chief executive of Bibby
Group); Alexei Calendar, Bibby Group; and
Stephen Bolton (MD) and Sue Worden (FD)
from Bibby Marine who were supported by
Norton Rose Fulbright’s Andrew Williams
and Richard Howley.
The SMBC Team comprised Nori Kawachi,
Jason Frank and Marina Bride-Soares
with legal support from Andrew Baird and
Charlotte Knight from the Watson Farley &
Williams Dubai office.
Meanwhile, the Edmond de Rothschild
team was led by Jean-Francis Dusch with
central roles played by Gurjit Orjela and
Robbie McColl with legal support from
"We are delighted with this Richard Smith at WFW in London.
award which reflects the hard A word from those who do
work and innovation that went At IJGlobal we are only too happy to raise
"We are very pleased to have
a glass to a deal of such significance,
into the Horizon deal." hopefully cleansing the palate from the advised the Centrus team on
memory of a certain Irish convention centre. this novel and challenging
Hohe See and Albatros are co-owned Centrus managing director Chris Hayes
by majority shareholder Energie Baden- said: “Peter and I are delighted with this financing."
Württemberg (EnBW) with 50.1%, alongside award which reflects the hard work and
Enbridge with 25.4% and Canada Pension innovation that went into the Horizon deal
Plan Investment Board on 24.5%. The and we’d like to thank the team at IJGlobal and Dorota Chmielewska from Siemens
wind farms operate with 77x SWT-7.0 154 for the recognition. Gamesa Renewable Energy; Nori Kawachi,
turbines supplied by Siemens Gamesa, “From the outset, old shipping and Jason Frank and Lawrence Butcher at SMBC
providing electricity to some 710,000 infrastructure lags told us that 100% debt Leasing; Gurjit Orjela, Robbie McColl, Lizzie
households. WM2 is the only vessel financing ‘for a ship’ wasn’t possible, but Horizon Lutley and Jean-Francis Dusch from Edmond
servicing these assets. isn’t any old ship and I realised this when de Rothschild Asset Management; and
The vessel was originally financed under a we started to receive fan mail from German our lawyers Graeme McLellan and Richard
60/40 gearing structure with debt arranged ship spotters! We try to reply to them all. Hughes from Greenberg Traurig; Andrew
by ABN Amro. Chris Hayes, Peter Rowe and “Around us, we see that the UK and Baird and Charlotte Knight from WFW Dubai;
Rees Sutton of Centrus Asset Management northern Europe is going through a period Andy Williams from Norton Rose Fulbright;
(CAM) refinanced the vessel via an innovative of energy transformation and offshore wind and Richard Smith and the team at WFW
100%, 10-year debt finance structure. is playing a key role in this process. Deep London.
The refinancing was achieved via a sale offshore wind turbines do not maintain Fortunately for JF Dusch, he did not have to
and leaseback whereby a CAM-owned themselves, however. This is done by brave follow honours roll call as the audience would
SPC – Centrus Marine One (CM1) – raised men and women who leave their families for have been decidedly restless after enduring
fixed-rate finance to acquire the vessel from weeks at a time to crew vessels like Horizon. the last paragraph which I refuse to believe
Bibby comprising: To have played some part in that process Chris could have delivered in one breath.
• 80% senior debt – 10-year, fixed rate loan has been an honour.” JF embraced brevity saying: “As an infra
from SMBC Leasing Chris continues: “I don’t want to say too debt asset manager with up to three decades
• 20% junior debt – 10-year structured much about the capital structure, but this was of experience in the field, we love to mix
bond from funds managed by Edmond de probably one of the most complex deals we up and diversify our portfolios by taking on
Rothschild Asset Management have worked on and executing a transaction innovative investments such as Wavemaster.
of this complexity without being allowed to It is one of these transactions we enjoyed
This was essentially stretch infrastructure meet anyone involved presented its own working on and feel very attached to.”
financed using hybrid project/asset finance set of challenges, but these were eventually Greenberg Traurig’s Graeme McLellan
techniques, and the transaction stands overcome at 3am on 23 December when the added: “We are very pleased to have
out due to its unusual capital structure documents were signed.” advised the Centrus team on this novel
which employs a combination of bank and Then, clearly wiping a tear from his eye, and challenging financing. The deal had
bond finance (with embedded derivatives Chris seemed to think he was at the Oscars its moments and required creative legal
courtesy of Peter Rowe) to provide 100% as he went on to give credit to everyone he solutions to a number of issues – we were
debt finance secured against the vessel and had met virtually in the last year. able to draw on our experience of complex
charter party revenues. He says: “As with all deals, this was a cross-border financings in a range of
The structure was conceived and team effort and special mention goes to sectors to devise bankable proposals. It is
structured by Centrus’ Hayes, Rowe and Rees Sutton – for all his involvement in the particularly pleasing that the innovation,
Sutton at CAM with legal support from deal until he very sensibly went on paternity creativity and hard work involved are being
Greenberg Traurig’s Graeme McLellan and leave – Jonathan Lewis, Alexei Callender and recognised with this award and we’d like to
Richard Hughes. Stephen Bolton from Bibby; Galya Petkova add our thanks to the team at IJGlobal.”

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IJGlobal Awards 2020 Europe

European offshore wind


Dogger Bank Wind Farm A and B
The Dogger Bank Wind Farm A and B has Ancillary facilities on the project reached supply 5% of the UK’s demand and
won the award for Europe Renewables some £700 million. equivalent to powering 6 million UK homes
Offshore Wind deal of the year. Following FC, the project developers then each year.
Project sponsors SSE Renewables and sold off a 20% equity stake each in the two Investment in the first 2 phases of the
Equinor in November (2020) reached FC on phases to Italian energy giant Eni for £405 project has seen the creation of 320 new
the first two phases of what is to become million. skilled jobs for the north east of England,
the world’s largest offshore wind farm, more The project is due to be delivered in 3x with more expected as construction ramps
than 130km off the north east coast of 1.2GW phases, which will reach 3.6GW up.
England. when complete. First power on Dogger Bank A is expected
Despite economic uncertainty brought For ease, Dogger Bank A and B are being in the summer of 2023 and in 2024 for
about by the coronavirus pandemic, constructed simultaneously while making Dogger Bank B.
the wind farm development attracted use of common technology and contactors.
strong interest from lenders and secured The two phases are also being financed
competitive terms at financial close. concurrently. Advisers:
The £7.6 billion ($10.7bn) project stands The wind farm will also be the first to • BNP Paribas
out for being – in aggregate – the largest feature GE Renewable Energy’s 13MW GE • Linklaters
offshore wind project financing to date Haliade-X turbines – at the time of close, the • Norton Rose Fulbright
globally. largest commercially available turbines. • K2 Management Baringa
Total senior debt facilities across the two When fully complete in 2026, each • Baringa
phases came in at £4.8 billion, with 29 phase of the wind farm will be capable of • Benatar & Co
experienced commercial banks lending on producing 6TWh of renewable electricity, • Operis
the deal alongside 3 export credit agencies. totalling 18TWh annually – enough to

It takes a world-class
team to deliver a
world-class deal

At GBP 5.5 billion and backed by 29 banks and three export credit agencies, Financial Close for Dogger
Bank A and B is the world’s largest offshore wind project financing deal so far. It’s a world-class deal
that’s helping build the world’s largest offshore wind farm to power 6 million UK homes each year.

doggerbank.com
@doggerbankwind

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European digital infrastructure (fibre)


G.Network fundraising
The award for European Digital Infrastructure
in the fibre category has gone to London-
focused fibre company G.Network for its
successful fundraise of £1 billion to support
its rollout of full fibre broadband in the
capital over the next 5 years.
Cube Infrastructure Managers-backed
G.Network is in the process of rolling out
fibre broadband to 1.4 million premises in
underserved areas in 13 London boroughs,
as many people continue to work from
home in response to Covid-19 and require
improved connectivity. A debt facility was also secured from four many are reliant on good connectivity, we’re
The fibre provider announced its plans for banks of up to £745 million, paving the way encouraging more investment in full fibre by
an equity raise last summer (2020), seeking for G.Network to proceed with working on working with London’s 32 boroughs and TfL
to boost its funding to carry out the rollout 4,500km of London streets to install new full to provide better access across the capital.”
through the on-boarding of new investors. fibre broadband infrastructure.
Financial close on what came in at a £1 The rollout is expected to create more
billion fundraise was reached in December than 1,250 new jobs, while G.Network is Advisers
(2020) when Universities Superannuation working with 8 local authorities to install • DC Advisory
Scheme (USS) came on board with a £295 fibre broadband with plans to cover a further • Rothschild & Co
million equity investment in G.Network over five local areas. It is aiming to connect at • DLA Piper
6 years. least 80% of premises in each.
• Linklaters
The deal secured USS – the UK’s largest The £1 billion raise makes the deal one
private pension scheme by way of assets – as • Clifford Chance
of the largest among alternative network
a joint controlling shareholder of G.Network, providers since Cityfibre announced its £2.5 • Solon Management Consultancy
alongside Cube Infrastructure Managers billion FTTP rollout plan in 2018. • Hardiman Telecommunication
which acquired a majority shareholding in the The Mayor of London, Sadiq Khan, said • BDO
broadband provider in 2018. of the deal last year: “At a time when so

European digital infrastructure refi for transport comms


Synerail – GSM-R

The award for European digital infrastructure GSM-R technology has been installed management over the remaining term of the
refinancing in transport communications across more than 12,000km of rail network partnership contract.
division has been won by Synerail for the in France replacing 35 separate telecoms This is a pathfinder project and its
GSM-R transaction in France. systems to create a single network. successful completion could make it the
Synerail which holds the GSM-R contract Synerail along with SNCF is working template for future PPP rail projects in
– a PPP between the company and France’s towards modernising the France’s railway France.
national state-owned railway Société network and the successful refinancing of Synerail is majority owned by Vinci
Nationale des Chemins de Fer Français its senior debt is seen as an endorsement Concessions (70%) with a minority share
(SNCF) – last May refinanced its senior debt of the PPP model of which the GSM-R was held by France’s second largest mobile
raising €54 million from three commercial the first rail PPP in France. service operator SFR which has been
banks. This greenfield project was awarded in rebranded Xp Fiber.
The financing was arranged by Crédit 2010 and has a 15-year concession ending
Agricole, SMBC Europe and Intesa San in 2025. At the end of the concession,
Paolo across two tranches both with a tenor the French government will take over
of four years. management of the network but the
GSM-R – the Global System for Mobile decision on future management remains to Advisers:
Communications, Railway – is a global be made.
• Eight Advisory
mobile telecoms system dedicated to the A PPP model was chosen for this project
railways that is compatible with European as the government sought to mobilise • White & Case
inter-operability standards. capital quickly by utilising private sector • Allen & Overy
The project replaced the RST analogue support for major strategic investments in • Clifford Chance
telecoms network to ensure uniformity in the country.
the exchange of information within the The refinancing last year allows Synerail • De Pardieu Brocas Maffei
framework of operational rail networks. to optimise its financing plan and cash

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European social infra (health)


Ankara Etlik Integrated Health
This transaction was a serious contender for capacity of 3,566 beds. It is located in Orcun Makal, head of capital and debt
the European Editor’s Choice Award, pipped Ankara and replaces six existing hospitals. advisory at EY, says: “Etlik is one of the
only by the novelty of a shipping finance The project sponsors – Türkerler and most remarkable restructuring infrastructure
transaction… which seems unfair given the Astaldi – in September successfully closed projects ever in our market, appreciated not
effort that went in to getting this Turkish deal the financial restructuring of €883 million only by the client and lenders but also by
over the line. project finance loans. government. Beyond that, successful close
EY played a hugely significant role as SPV The project faced significant operational helped the Turkish economy in many ways.”
adviser on Ankara Etlik Integrated Health and financial challenges leading –
and – above any other party involved in understandably – to broken trust among
the deal – it warrants being singled out for various stakeholders and the lenders.
having revived a deal that was destroying This ultimately resulted in a draw-stop of the Advisers:
the reputation of PPP in Turkey and existing €883 million loan facilities provided by • Yapi Kredit
shepherding it to financial close. global financial institutions, including EBRD, • Citigroup
This project was submitted in the refinance IFC, Black Sea Trade and Development Bank, • EY
category and identified in the submission as Credit Agricole, Deutsche Bank and UniCredit • KPMG
a restructure… but warrants recognition as and Turkish banks including Isbank, Akbank • Herguner Bilgen Ozeke
a greenfield deal in its own right, given the and TSKB among others. • Fidan & Fidan
effort that went in to closing it. Following a significant restructuring • Clifford Chance
Ankara Etlik is one of the largest PPP process the deal with a large number of • Freshfields Bruckhaus Deringer
hospital projects in Turkey, with a project stakeholders was successfully closed, • OGB Attorney Partnership
size of €1.3 billion and a campus that will making it the first restructuring in the Turkish • Mott MacDonald
comprise 11 different buildings with total Healthcare PPP space.

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European social infrastructure education


Espoo Schools
It is nigh on impossible to ignore a market
first when it comes to selecting winners for
awards, and so it was for the Espoo Schools
PPP in Finland which made it to financial
close in June.
This is a really interesting deal with
Meridiam taking the lead role (80%) working
alongside local construction company YIT
(through the SPV Kumppanuuskoulut Oy)
for the DBFM of five schools and three day
care centres that will transform education
facilities for more than 4,000 pupils in
Espoo, Finland’s second largest city. law only allowed for transport PPP projects the full support of residents, particularly
This project is part of Espoo’s social – rail and road – and to benefit from tax because they would have met the cost of
infrastructure investment programme – exemption clauses. the upgrades through municipal taxes under
Schools in Shape – and will contribute The campaign to change tax laws to the previous system.
around 15% of the identified needs to allow wider use of the PPP model started
guarantee healthy and functional premises in the autumn of 2016 with the support of Advisers:
for schools and day care centres in the city. Espoo alongside the cities of Helsinki, Oulu, • Capex Advisers
As the nation’s first social infrastructure Turku, Tampere and Oulu, and was backed • PwC
PPP it involved an innovative financing by the Association of Finnish Municipalities, • Bryan Cave Leighton Paisner
structure that forced a re-draft of Finland’s real estate body Rakli and construction • Hannes Snellman
tax legislation and now potentially serves as association RT. • Merilampi
a pathfinder for a pipeline of similar deals. This eventually led to a change in tax law • Roschier
The city of Espoo was seeking a new that took effect in early 2018, allowing the • Ramboll
model for it to deliver smaller, more PPP model to be applied to a wider range • Aecom
localised projects and – after considering of sectors. • Operis
the “lifecycle model” – it identified PPP as Espoo Schools is the first project to be • Marsh
the best option. Historically, Finnish tax delivered at the municipal level and has

European transport mass transit


XMU

For the European mass transit award in for the services provided, thereafter the
the transport, IJGlobal has selected an train operating companies will make lease
interesting project – led by Allianz Global payments to the Lessor SPV.
Investors – to finance 55 battery-electric- To support the procurement of innovative
powered trains to be operated in the state battery-powered trains and encourage
of Schleswig-Holstein, northern Germany. the shift from diesel to much cleaner
These trains can operate on non- electric power, the Schleswig-Holstein is
electrified and on electrified routes and have providing a debt service guarantee from
a range of 80km at a driving speed of up to commencement of construction up until the
160km/h while on pure battery mode. The end of the planned operations period.
trains can operate on 80% of non-electrified For passengers, they will enjoy more The total debt raised for the XMU
routes in Germany and can be charged comfortable trains paired with an increased transaction amounts to between €150
while driving, at train stations and with the regularity of services providing an essential million and €200 million and demonstrates
energy generated during braking. service to travellers in the region. The Allianz Global Investors’ structuring
It gets a green thumbs up as these goal also is to incentivise travellers and capability by packaging the full 32-year
trains will replace 46 diesel-powered units commuters to use public transport over financing package into one simple and
transforming Schleswig-Holstein’s current individual car journeys and therefore stable fixed-rate instrument. AllianzGI set
network that is currently 70% reliant on contribute to a significant reduction in CO2 constant monthly annuity repayments during
diesel-powered trains which compares emissions. the full 28-year operations phase.
poorly to the German average of 43%. The XMU transaction finances a Lessor
The trains – with higher energy-efficiency SPV to purchase the trains throughout a Advisers:
and an innovative battery drive concept – 4-year construction period, with the trains • Ashurst
also play a significant role in both the state’s then leased to several train operating • K&L Gates
and Germany’s long-term goal of net zero companies. The state of Schleswig-Holstein • Mazars
emissions. will pay the train operating companies

www.ijglobal.com Summer 2021


82
IJGlobal Awards 2020 Europe

European transport
A465 PPP
The A465 PPP – Heads of the Valleys Road Through the MIM model, the Welsh three tranches, £593 million in senior debt
Project – sees Meridiam take the limelight government can invest up to 20% of and an equity bridge loan of £51.5 million.
once again for social infrastructure in the project’s equity. It also allows the The £235 million senior debt was secured
Europe for a pathfinder deal that made it to government to nominate a director to sit on with a 28 year 11 month tenor.
financial close last October in Wales. the board, thereby giving it greater control.
It’s a long time since the UK boasted a After years in the making, this deal
pipeline of PPP transactions so any deal of was pushed through to financial close Advisers:
significance making it over the line in the in a challenging environment with the • Societe Generale
country warrants consideration for an award, sponsor – a JV of FCC and Meridiam – • PwC
but the pathfinder nature of this Welsh deal closed the deal in just three months from • DLA Piper
makes it a dead cert. award… testament to their combined • Ashurst
When choosing awards, it stresses industry experience and the resilience of • Herbert Smith Freehills
the IJGlobal editorial team to choose infrastructure projects.
• Eversheds Sutherland
an obvious winner, scanning the other The A465 runs from Dowlais Top to
• Pinsent Masons
submissions to see if there is anything there Hirwaun and was initially brought to market
that gives them the edge against a deal that in 2014 as a PPP to expand a 17.7km • Jacobs
is likely to sweep the board with other titles. stretch of road from a 3-lane single • Mott MacDonald
However, when you stack up the pros for the carriageway to a 2-lane dual carriageway, • Steer
A465 and take into account that this is the first along with the construction of a 2.2km • Willis
deployment of the Welsh mutual investment stretch of new road. • AON
model (MIM) which it evolved from the The project has an associated cost of • Marsh Insurance
Scottish NPD alternative to England’s PFI/PF2. £644.5 million with debt arranged across

WE DELIVER
SUSTAINABLE
INFRASTRUCTURE
WITH GREATER
IMPACT

Together with our investors and partners, we deliver long term, essential
and sustainable infrastructure that improve the quality of people’s life.
All our projects contribute concretely to the United Nations Sustainable
Development Goals (SDGs), in particular: combating climate change,
building resilient infrastructure and ensuring access to clean and
affordable energy for all.
All provide impactful solutions today and for future generations.

Espoo Schools – Finland Meridiam is a Benefit Corporation under French law


and supports the UN Sustainable Development Goals

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83
IJGlobal Awards 2020 Europe
2020

European telecoms towers European telecoms European hydro refinancing


Phoenix Tower Project Astérix HS Orka
Given deal flow in the telecoms and digital The European telecoms award goes to a Ancala’s HS Orka refinance deal is one
infrastructure space, this year proved major French transaction that saw Vauban that regular readers of IJGlobal will be well
challenging to identify distinct winners of Infrastructure Partners and Bouygues acquainted with as it won a trophy in the
awards across Europe, but the Phoenix Telecom join forces to invest €1.5 billion to IJInvestor Awards in a rare cross-over between
Tower deal leapt off the page during the roll out fibre-to-the-home (FTTH) to medium our two ceremonies. This is a fascinating
editorial judging sessions. density areas around France. deal that crops up here again for IJGlobal as
Blackstone portfolio company Phoenix Working through the Société European hydro refinancing winner given that
Tower International in March (2020) closed de Développement pour l’Accès à it’s such an interesting transaction.
an agreement with Bouygues Telecom to l’Infrastructure Fibre (SDAIF), the vehicle HS Orka is the Icelandic renewable
develop some 4,000 newly-constructed purchased and access rights to FTTH lines energy and utility company in which Ancala
wireless towers over 12 years across France from Orange in certain areas in France – Partners owns 50%, and this award is to
outside the Very Dense Area. around 30% of French premises – through reflect it securing a $210 million financing
This transaction is one of the largest deals the co-financing of Indefeasible Rights of package with a group of leading European
closed by Phoenix and significantly expands Use (IRU) and the related financing. commercial lenders in February 2020.
its footprint in France, while also solidifying Bouygues Telecom selected Vauban as The national renewables leader owns and
the company’s strong position in Europe, the a majority partner allowing it to take 51% operates more than 174MW of geothermal
US, Latin America and the Caribbean. shareholding in the SPV, having won the call power production capacity in addition to
Phoenix and Bouygues Telecom established for tenders at the end of 2019. a 10MW hydro plant that was recently
a long-term partnership in the form of a In turn, Bouygues entered into a 30-year commissioned… and this award is to
Phoenix-controlled joint venture that will own wholesale commercial agreement with the recognise the hydro element (and because
and operate the sites. Some of the sites will SPV to rent access to the FTTH lines within we like the deal so much).
be deployed as part of Bouygues Telecom’s the SPV’s perimeter. The SPV also offers Ancala in partnership with Jarðvarmi – a
“New Deal Mobile” regulatory obligations of rental access to the FTTH lines to third-party consortium of 14 Icelandic pension plans
targeted mobile radio coverage improvements, operators. – acquired the business in May 2019.
accelerated mobile radio rollouts alongside As part of the transaction, SDAIF acquired Immediately after the acquisition, Ancala
transportation routes. With attractive size and Bouygues Telecom’s existing long term FTTH worked with HS Orka to explore options to
coverage, the JV is very well positioned as an access rights of optical fibre bought from structure a flexible financing platform that
infrastructure operator of choice in the market. Orange and will acquire additional long- would enable the company to deliver its
At the time of financial close, Phoenix term FTTH access rights of optical fibre from growth projects.
Tower International chief executive Dagan Orange through co-financing arrangements. The financing comprised a term loan,
Kasavana said: “We are quite enthusiastic to To finance the acquisition of such rights, capex facility and a revolving credit facility.
partner with Bouygues Telecom on such an SDAIF has raised €1.11 billion. The debt HS Orka is using the facilities to pursue
important and exciting project. We believe the was underwritten at 100% by Credit Agricole attractive development projects and
French market is well positioned for significant at the time Vauban was selected preferred strengthen its position as Iceland’s leading
wireless growth throughout the country as bidder, just before the entry into force of the privately-owned power producer.
further 4G and 5G deployments are made first national lockdown in France. The new financing enabled HS Orka to
over the coming years and we are proud of Bouygues Telecom retains such long-term address several key objectives – primary
our participation in these deployments.” FTTH access rights access rights as a client to among them the capacity to raise USD-
Phoenix Tower International owns and SDAIF pursuant to a 30 years master services denominated debt to match the company’s
manages more than 8,000 towers, 986km of agreement which will back debt service. currency exposure while also implementing
fiber and in excess of 80,000 other wireless More than €1 billion will be invested in a cost-efficient capital structure through the
infrastructure and related sites throughout the FTTH lines over the next for years by the establishment of a platform. This enabled
US, including Puerto Rico and the US Virgin JV, enabling Bouygues Telecom to secure HS Orka lenders (both current and future) to
Islands, Costa Rica, Panama, El Salvador, infrastructure access at attractive conditions lend under a structured framework.
Guatemala, Colombia, Peru, Mexico, the and provide coverage to its fast-growing Beyond that, the transaction achieved
Dominican Republic, France, Jamaica, FTTH client base in the Orange AMII area. reduced all-in rates and generous covenants
Argentina, Ecuador, and Bolivia. For Vauban, the JV represents the next to establish further operational flexibility, and
Phoenix was founded in 2013 with a mission step in a longstanding strategy to provide established a significant revolving capex
to be a premier site provider to wireless digital infra access to commercial operators, facility to support further investment in
operators in high-growth markets. Investors adding Orange AMII area to a strong generation infrastructure in Iceland.
include funds managed by Blackstone Tactical presence in less dense areas (PIN networks, The refinancing package has given HS
Opportunities and John Hancock, as well as Axione Infrastructure) and high density Orka the ability to fund attractive development
members of the management team. areas (Cityfast partnership). projects and further de-risk its operations
making it a stand-out deal for Europe.
Advisers: Advisers:
• Natixis • Credit Agricole
• ING • Rothschild Advisers:
• Allen & Overy • Goldman Sachs • DC Advisory
• White & Case • Clifford Chance • Latham & Watkins
• Freshfields Bruckaus Deringer • White & Case • Shearman & Sterling
• Orrick Rambaud Martel • Wilkie Farr & Gallagher • Logo Law

www.ijglobal.com Summer 2021


84
IJGlobal Awards 2020 Europe

European waste-to-energy portfolio refinancing


Biogen
The winner of the European waste-to-energy the operational track-record of Biogen, which through its industry partners and asset
portfolio refinancing award is the £50 million allowed the lenders to approach the financing management team.
deal focused on a leading UK owner/ on a corporate basis rather than individual The refi enabled the standalone financing
operator in the anaerobic digestion (AD) asset financings which have been the of a leading energy-from-waste renewables
market – Biogen. traditional approach in the sector. platform. It also provides Biogen with
This Ancala transaction deals with the refi This required detailed due diligence funding to pursue further investments
– led by AIB and NatWest – of a diversified and meetings with the management into the sector, including renewable heat
portfolio of 14 renewable energy from waste team for the lenders to appreciate how and private wires to export renewable
plants and six composting sites that provide Biogen’s leading and in-house operating electricity directly to nearby businesses and
cost-effective, low carbon, food waste model across its diversified portfolio was communities.
management solutions. differentiated from the rest of the market. The portfolio is now outperforming returns
The Biogen AD facilities have an installed This structure is now being used as a for similar assets in the same sector making
generation capacity of around 26MW and template by lenders when assessing other it a worthy winner of this award.
works with supermarkets, the hospitality portfolios seeking debt finance in the AD
industry, food manufacturers and local sector.
authorities across the UK. The plants recycle During the refi process, there was also Advisers:
some 500,000 tonnes of waste each year a change in the senior management team • Rubicon Infrastructure Advisers
and produce enough green energy to power with Biogen’s chief executive departing for • Burges Salmon
over 55,000 homes. a career change. This spooked the lenders, • Osborne Clarke
The structure of the financing was unique but Ancala was able to demonstrate how its • Mott MacDonald
in that it was the first portfolio-based financing active asset management strategy worked • Eunomia
for the AD sector in the UK. It is based on in practice, including day-to-day involvement

CREATING VALUE
BY THINKING
DIFFERENTLY
Proactive sourcing of
bespoke investments

Active asset management

Mid-market focus

Aligned partner

ancala.com

www.ijglobal.com Summer 2021


85
IJGlobal Awards 2020 Europe
2020

European energy storage refinancing


Enerjisa Enerji Üretim
The winner of the IJGlobal Award 2020 for
refinance in the energy storage category for
Europe is Enerjisa Enerji Üretim in Turkey,
the largest financing to make it over the line
in the country in the 2020 calendar year.
Furthermore, it is the single largest
sustainability-linked (ESG) financing ever to
have completed in this sector in Turkey.
The transaction was initiated towards the
end of March 2020 at the peak of Covid-19
uncertainty and reached financial close in
September firmly in the teeth of the second
coronavirus wave. financing, switching to no security/sponsor CCGTs, three wind farms, two solar parks
The complexity of the process required support structure and one lignite power plant.
sponsors and advisers to coordinate among Furthermore, additional indebtedness and It is a leading primary dealer in over-the-
multiple stakeholders – more than 20 investments was allowed within a corporate- counter market and derivatives exchange
incumbent lenders, across several regions – style covenant structure for renewables, with its trading volume exceeding 20TWh
and due diligence of the full portfolio of 20 enabling the company to distribute and it is the largest private sector power
power plants. dividends to its shareholders by reducing generation company in Turkey.
The company needed to put corporate- restrictions on such distributions – so long
style financing in place to prepare for its as covenants are not breached. Advisers:
next phase of development given that As a final benefit, the refi allowed a • Cranmore Partners
Enerjisa has become a mature company reduction in the number of lenders from a • GKC Partners
showing a significant track record in every fragmented group of 20, down to just six – • White & Case
aspect of its business. greatly simplifying governance of the loan. • Selvi Ertekin Attorney Partnership
With this transaction, Enerjisa was able to Enerjisa – an (indirect) subsidiary of • MRC Turkey
align its capital structure with its long-term Sabancı Holding and E.ON – has an • Aplus Enerji
strategic objectives, including being relieved installed capacity of around 3,607MW • ACE Consulting & Engineering
from sponsor support in place in the legacy generated by 12 hydroelectric plants, three

European solar refinancing CSP


Project Helios

You don’t see many European financings tail (six months) than comparable financings
of concentrated solar power let alone a that require tails of up to two years.
refinancing of CSP and – as such – this Beyond that, the new structure also
deal warrants being singled out. enabled Atlantica Yield to increase its
The €326 million refi by Atlantica Yield CAFD (distributions) from the project while
also stands testament to the skills of enabling a simultaneous dividend recap for
primary deal leaders – Cantor Fitzgerald and itself against the existing structure.
Assured Guaranty. Project Helios is also the first rated CSP
Cantor Fitzgerald wore several hats on transaction globally following Solaben 1&6
this Spanish refi as financial adviser, sole in Spain of the 2015 vintage.
placement agent, ratings adviser and Francisco Martinez-Davis, chief financial
structuring agent; while Assured Guaranty The portfolio refi using Assured Guaranty’s officer of Atlantica, said at the time of
brought its wrapping capabilities. credit enhancement product enabled the financial close: “With this financing, Atlantica
This was first transaction globally that debt product to be rated AA by S&P. The is able to continue to diversify its financing
AG wrapped in the CSP sector, and – even investors in the bond are Barings and sources.”
more significant – it is understood to be the Ampega.
first monoline wrapped CSP… ever. The financial cost for the transaction (all-
It impacts two concentrated solar power in) was sub 2% a result of the AA treatment Advisers:
assets – Helios I and II – that have a and guarantee provided by Assured • Cantor Fitzgerald
combined generating capacity of 100MW Guaranty, while also providing Atlantica • Clifford Chance
and are built on 220 hectares in Ecija, Yield with improved tenors and leverage to • Watson Farley & Williams
southern Spain. The projects were initially comparable existing financings. • BDO
owned on a 50:50 basis by E.ON and The Assured Guaranty refi came in at • Altermia
Atlantica Yield – previously Abengoa Yield – roughly 100bp less than other non-wrapped • PwC
but are now 100% owned by Atlantica Yield. deals in the market with a shorter regulatory

www.ijglobal.com Summer 2021


86
IJGlobal Awards 2020 Europe
2020

European digital infrastructure refinancing smart meter


Calisen Refinancing
The £1.1 billion refinance of Calisen – the
UK smart metering asset provider – in July “The support that the refinancing has generated from both our
(2020) caused ripples in the market as one
of the few (and first) large, multi-creditor
existing lenders and new institutional debt providers is testament
financings to achieve financial close in the to the underlying credit strength of our business.”
London loan market at the height of the
pandemic.
The refi impacted part of Calisen’s
existing portfolio of smart meters and other October 2022, and £730 million, maturing “The support that the refinancing has
metering equipment, alongside the raising September 2029. generated from both our existing lenders
of capital expenditure and working capital These meter funding facilities were and new institutional debt providers is
debt to support the supply of metering replaced by a fixed-rate institutional tranche testament to the underlying credit strength
equipment under contracts with the Big 6 of £290 million which amortises from June of our business, allowing us to fund the
and other energy suppliers. 2025; and an amortising bank loan of continued smart meter roll-out more
The transaction first commenced £192.5 million. efficiently and deliver on our pipeline of
in late 2019 and continued past the Additionally, the following committed but opportunities.”
commencement of the Covid-19 outbreak in undrawn facilities are available as part of the
the UK, to close in July with the support of new structure to fund the continued roll-out
around 20 bank and institutional lenders. of smart meters from the group’s pipeline: an
Among its achievements, the Calisen amortising capex facility of £115 million; a
deal heralded the entrance of institutional revolving credit facility (Platform RCF) of £400 Advisers:
lenders – at scale – into the smart metering million; and a standby facility of £70 million. • Evercore Partners
market which had hitherto been dominated Calisen CFO Sean Latus said at the time • Santander
by bank lenders supporting infrastructure of financial close: “The refinancing extends • Allen & Overy
fund investors. the weighted average life of the facilities we • Clifford Chance
Two existing bank facilities were have refinanced as well as fixing their cost • BDO
refinanced – £400 million, maturing while interest rates are at historic lows.

European digital infrastructure refinancing fibre


Open Fiber

The winner of the digital infrastructure third of €694 million of potential existing
refinance award in the fibre category goes Open Fiber – a landmark lenders non-consenting to the amendment
to Open Fiber – a landmark transaction in and reinstatement.
the infra sector in both Italy and Europe.
transaction in the infra sector Following a first successful process with
BNP Paribas played a leading role in this in both Italy and Europe. the existing lenders, only one bank exited
transaction, acting in an advisory capacity the transaction, reducing the backstop
while also serving as structuring bank, underwriting to €70 million, while the
modelling bank, global coordinator, global other existing lenders increased their
bookrunner, underwriter, initial mandated provided a €510 million bridge loan to commitments by some €279 million.
lead arranger and hedge coordinator. OF, which was still at development phase,
The execution timing for the A&E was achieving close in October 2018.
particular as it was running in parallel In early 2020, following an update of
with ongoing M&A discussions on ENEL the original business plan, BNPP, SG and
exiting to Macquarie and Cassa Depositi Unicredit started discussions with OF on
Advisers:
e Prestiti taking a leading role in the future the best way to address additional financing
needs. • BNP Paribas
consolidation of the broadband market in
Italy, therefore securing the financing of the This translated into a structuring and • Societe Generale
business plan of Open Fiber was of critical advisory mandate whereby, through an • Unicredit
importance for both shareholders. amend and restate process, a €675 million
• Gianni Origoni Grippo & Partners
Open Fiber was created to roll out a top-up, non-recourse facility was added to
national FTTH network impacting 19.4 the existing debt package as a complement • White & Case
million households in Italy under a to the €450 million additional equity • Artur D Little
concession regime benefiting from public commitments brought by the sponsors. • EY
grants from Infratel. When complete, OF’s The three banks were also mandated
to each underwrite one third of the €675 • Analysis Mason
network will be the largest in Europe. BNPP,
Societe Generale and Unicredit in July 2017 million top-up facility, and backstop one

www.ijglobal.com Summer 2021


87
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IJGlobal Awards 2020 Europe
2020

European solar refinancing – European port refinancing – European renewables portfolio


Renovalia – SIX Antwerp Gateway refinancing – Iberwind
Portuguese wind farm
Renovalia wins the award for European solar The refinance of Antwerp Gateway – known
refinancing with Project Six, a €210 million to those involved in the transaction as Ventient Energy’s refinance of the 726MW
deal in Spain that was led by BNP Paribas. Project Brialmont – wins in this category portfolio of the Iberwind Wind Portfolio – one of
This is one of the most recent for having arranged long-term financing to the largest wind portfolios in Portugal – is the
developments for the major Spanish support ambitious expansion plans. winner of the European award in this category.
independent renewable energy producer. Antwerp Gateway secured a 20-year, €258 Ventient acquired the portfolio in October
Over 20 years, the company has built up million refi package as part of its plans to 2020 from Cheung Kong Infrastructure (CKI)
a diversified portfolio of renewable assets increase automation and container capacity and Power Assets Holding (PAH). It holds 31
totaling 808MW in operation, including with Citi acting as sole and exclusive financial operational wind farms in Portugal, comprising
onshore wind (82%) and solar PV (18%). Of adviser and placement agent. 320 wind turbines and the refi reached
these assets, 66% are located in Spain (66%). This financing package not only financial close on 25 November 2020.
The refi impacts a 53MW portfolio of refinances the debt of Antwerp Gateway The portfolio operates under a two-phase
seven solar PV plants owned by Renovalia with an attractively priced, long-dated feed-in-tariff (FiT) regime with an initial 15-
and spread across Spain with an operating private placement facility, but it includes year fixed tariff followed by a seven-year cap
life of around 10 years and what the award a bank facility to support the terminal’s and floor price protection.
submitter classes (not exactly glowingly) as capacity expansion plan. With an installed capacity of 726MW, this
“satisfactory performance to date”. With these facilities in place, the joint represents around 15% of electricity produced
As a plus point for this portfolio, all the venture has secured funding to increase the by wind power in Portugal and about 3% of
assets benefit in full from the Spanish capacity of the terminal in line with growing the electricity consumed. On a consumer level,
regulatory framework applicable to renewable market demand. It was the first European this is equivalent to the energy consumption
plants built prior to the 2013 regulatory reform. terminal asset to price in the private market of more than 600,000 average households.
Project Six is a landmark transaction for since the outbreak of Covid-19. Two of the wind farms in the portfolio –
the BNP Paribas Spanish franchise, in which Antwerp Gateway is a container terminal Candeeiros and Pampilhosa – are regarded
the French bank demonstrated its leadership in Deurganckdok in the Port of Antwerp, regionally to be among the largest in terms
and capacity to deliver a global and Belgium. DP World manages and operates of on-shore installed capacity account for
coordinated solution to the client involving the terminal under a 40-year concession more than 100MW each.
advisory services and a tailor-made financing granted by the Antwerp Port Authority, and The total value of the transaction is €745.5
package with full commitment and following which expires December 2046. The other million, comprising €682 million of senior
successful syndication. JV partners are COSCO Shipping Ports, debt and €55 million in additional funds. The
This transaction also strengthens BNPP’s Terminal Link and Duisburger Hafen. lenders are: Allied Irish Banks, BBVA, Banco
long-standing relationship with Renovalia. The refi achieved an A- investment-grade Comercial Português, Santander, Bankinter,
In the context of Cerberus sale of rating from a major rating agency reflecting BNP Paribas, Crédit Agricole, Intesa Sanpaolo,
Renovalia to F2i, BNP Paribas provided a the robustness of the underlying business National Australia Bank and Novo Banco.
fully committed refinancing package that and the conservative debt structure. Moreover, At the time of the Iberwind acquisition,
created substantial additional value to the the financing package provides Antwerp Ventient owned and operated assets
sponsor, by optimizing financing terms and Gateway access to attractively priced, long- across Belgium, France, Germany, Portugal,
smoothing the financing execution. dated funding that is better aligned with its Spain and the UK, including four wind
The new financing was structured as one concession-based business model. farms in Portugal. The addition of Iberwind
single, non-recourse, long-term financing at The senior secured notes include a two- brought its installed capacity to 2,556MW,
HoldCo level. The financing includes a 17- year delayed draw feature with no additional cementing its position as a leading
year senior term loan for €202.1 million, and commitment fees paid to investors. A bank European onshore wind company.
an €8.7 million debt service reserve facility. capex facility is available to support the Ventient Energy chief executive Mark
In addition, Global Markets structured and terminal’s expansion plan, allowing Antwerp Jones said at the time of the acquisition:
executed the blend-and-extend of the existing Gateway flexibility to manage the timing and “Iberwind is one of Portugal’s leading wind
swaps (c. €23 million mark to market). funding of its expansion capex in response energy companies, and a clear strategic fit
The financing was 40% oversubscribed, to the broader market environment. with our existing business across Europe.
highlighting the portfolio’s intrinsic quality Rob Harrison, VP of DP World Inland & We are excited to welcome the highly
and the strong investors’ interest in this Logistics said at the time of financial close: experienced Iberwind team to Ventient.
asset type, as well as the overall financing “The excellent terms and structuring reflect the We believe the combined team will form
structure’s soundness. The financing made institution’s positive view of Antwerp Gateway a powerful organisation while extending
it possible for Renovalia to improve financial as both an asset and an investment. This our sustainable growth ambitions and our
conditions by extending the repayment issuance will enable us to increase capacity mission to help secure the planet’s future
period and adjusting financial costs. to serve customers better and further improve through renewable energy.”
efficiency across the terminal.”
Advisers: Advisers:
• KPMG Advisers: • Allen & Overy
• Watson Farley & Williams • Citigroup • Cuatrecasus
• Gomez-Acebo y Pombo • Allen & Overy • Linklaters
• Bird & Bird • Linklaters • Gonçalves Pereira & Associados
• G. Advisory • White & Case • Sociedade de Advogados
• Willis • BDO • BDO

www.ijglobal.com Summer 2021


89
IJGlobal Awards 2020 Europe
2020

European transport motorway refinancing


A88 Refinancing
The refinance of a major French motorway
PPP with Allianz Global Investors playing
a significant role is the winner of the
European transport refi award.
AllianzGI fully refinanced, on behalf of
its investors, the existing debt of Alicorne –
concessionaire on the A88 that is owned by
APG, Ardian and NGE Autoroutes.
The A88 is a 44km tolled road connecting
Falaise and Sées in Normandy, and is an
essential piece of infrastructure serving
local commuters as well as long-distance The shareholders, financial adviser The bonds were structured with improved
travellers. It facilitates the flow of goods by Societe Generale and AllianzGI’s deal terms compared to the original proposal
linking key cities and ports in Normandy to team closely monitored the performance prior to Covid, notably higher margin,
the south west of France and Iberia. of A88 which revealed that – after a severe strengthened covenants, more stringent
The refi was launched in early 2019 with drop in usage during full lockdown – traffic dividend distribution tests and increased
several potential debt providers – including recovered quickly to almost reach 2019 liquidity. The 35-year funding allowed
AllianzGI – and was initially expected to levels. reduced annual debt service, increasing the
close in the first quarter of 2020. However, This allowed AllianzGI’s deal team to cover ratios.
the Covid-19 pandemic impacted progress strengthen its conviction on the resilience
and it didn’t close until late December. of the asset and to offer a funding solution Advisers:
Government measures to stem the that addressed the total refinancing needs • Societe Generale
circulation of the virus severely restricted of Alicorne, allowing it to repay the loans • Ester
mobility, which led to a sharp drop in initially granted by the EIB, Depfa-FMS • Allen & Overy
traffic and eventually dampened sentiment and Dexia, and to unwind the interest rate • Gide Loyrette Nouel
on road assets. A full lockdown was hedges put in place by Depfa-FMS and • Mott MacDonald
implemented in France between mid-March Dexia. • H3P
and mid-May, and was then gradually The refinancing is split between 30-year • Aether Financial Services
removed as things improved. and 35-year bonds.

European social infrastructure refinancing district heating


Coriance

The €100 million refinance of Coriance is with the company’s performance across a
the winner of the IJGlobal award for refi Coriance supplied 2TWh number of sustainability KPIs. Under this
in the district heating sub-sector of the innovative sustainable finance structure, the
European social infrastructure category – a
of heat, of which 68% was facilities provide a further €100 million of
deal with a healthy sustainability angle. generated from renewable funding for Coriance’s growth over the next
As the third largest district heating energy sources, making five years.
business in France, Coriance operates Committed growth projects include
a network of district heating and energy Coriance the greenest district network expansions for a number of
assets via long-term concessions serving heating operator in France. concessions, and further increasing the
215,000 household-equivalents. It caters proportion of renewable energy in the
for a diverse range of customers including production mix.
public and private housing managers, It generates the majority of its revenues DC Advisory played a key role as financial
schools, universities, hospitals, municipal from these long-term DSP contracts, typically adviser on this refi, building in clever
buildings and industrial customers. with a duration of 20-30 years, with an sustainability elements that are becoming
Its portfolio consists of 34 concessions average remaining contract life of 15 years. increasingly common in transactions across
under the Délégation de Service Public It has been jointly owned by First Sentier the globe and will feature a great deal more
(DSP) framework and one private contract. Investors’ EDIF I, EDIF II and GDIF unlisted regularly in IJGlobal awards in years to come.
In total, it has an installed heat capacity of infrastructure funds since August 2016.
1.3GW and an installed power capacity of Coriance in March 2020 successfully Advisers:
150MW. closed the refinancing of €100 million of • DC Advisory
In 2020 Coriance supplied 2TWh of senior facilities – capex and term debt – • Latham & Watkins
heat, of which 68% was generated from with existing lenders NAB and Westpac. • Allen & Overy
renewable energy sources, making Coriance Both the capex facility and term loan were • BDO
the greenest district heating operator in structured as sustainability improvement • Sustainalytics
France. facilities that link the pricing on the loans

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90
IJGlobal Awards 2020 Europe

European offshore wind refinancing


London Array
The winner of the European offshore relationships between the owners act to was arranged across three tranches: a
wind refinance award is London Array mitigate risks in the long term. £395 million term loan; £50 million working
for Masdar’s refi in March of its 20% Masdar refinanced its 20% stake in the credit facility; and a £21 million debt service
stake in the farm – the third-largest fully 630MW London Array with three original reserve facility.
commissioned offshore wind farm in the UK. lenders returning and four new banks The wind farm is located off the coast
While many submissions have made a coming in. The Abu Dhabi-based renewable of Kent, England, and has been fully
fuss about the impact of Covid-19 which energy developer financed its portion of the operational since 2013. It powers more
made their efforts exemplary by having construction costs with project finance debt than 500,000 homes, displacing almost one
closed a deal over Zoom… this one that signed in 2011, which it refinanced in million tonnes of CO2 yearly.
warrants special mention as it closed on 26 2013 once the offshore wind farm came The other owners are RWE with 30%,
March – when many were struggling to set online. Orsted at 25%, and CDPQ with 25%.
up home offices and fend off children/pets/ Masdar then returned to the market in
coronavirus. March 2020 to refinance the debt on the Advisers:
The project stake is owned by sponsors project with a club of seven banks: BNP • Societe Generale
via a HoldCo and through an unincorporated Paribas, MUFG Bank, Santander, Siemens • Baringa
joint venture structure, both of which can be Bank, SMBC, Societe Generale and • Allen & Overy
considered challenging from a senior lender Standard Chartered. • Norton Rose Fulbright
/ bankability perspective. The debt priced on market at Libor • Wood Group
However, the structuring of the operating +130bp, and the deal was 6 months in the • BDO
agreements, operational track record of making with Societe Generale acting as • Willis Towers Watson
the asset and the constructive working financial adviser to the lenders. The debt

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IJGlobal Awards 2020 Europe
2020

European waste-to-energy European solar – Kaposvár Solar European onshore wind


Protos PV Project Zeewolde Wind Farm
The winner of the European waste-to- The winner of the solar award is Kaposvár The winner of the European onshore wind
energy award is the 49MW Protos project PV project in south west Hungary – a project award is Zeewolde Wind Farm – Windpark
in Cheshire, England, a deal that saw Biffa, that reached financial close in June 2020 Zeewolde (WPZ) – a 322MW facility with
Covanta and Macquarie’s Green Investment and is the largest facility in central Europe, deep roots in the community and a unique
Group reach financial close on the £355 now that it is operational. ownership structure that should be used as
million project financing in early December. The sponsor – China National Machinery a template for future deals.
The total project construction cost is Import and Export (CMC) – secured This transaction in the Netherlands closed
estimated to be between £345 million and financing from the Bank of China to build in June 2020 and has so many positive
£355 million to provide 400,000 tonnes of the 100MW project in Hungary, raising features that it is a feather in the cap to all
annual treatment capacity for non-recyclable Ft23.23 billion ($74 million) of debt while parties involved in its delivery – a veritable
waste, further enabling the UK to achieve providing Ft10 billion in equity to finance the ESG pathfinder. The WPZ team started in
national self-sufficiency in managing waste construction and operation of the wind farm. the right way by discussing the project with
and compliance with landfill diversion targets. The debt was entirely provided by the the local communities and built from solid
In processing non-recyclable residual Bank of China which acted as mandated foundations of support.
waste, the Protos Energy Recovery Facility lead arranger as well as facility and security The ownership model shares the
will generate up to 49MW of electricity – agent. The loan was arranged across two economic interest indirectly with more than
enough to power 90,000 UK homes. tranches, both Ft11.6 billion in size with a 200 local residents, turbine owners and
The facility will be located near Ellesmere tenor of 15 years. agricultural entrepreneurs. Solidarity within
Port in Cheshire within the Protos energy CMC began construction on the asset the group is cemented by emphasis on
and resource hub. It is being developed after the project reached financial close local benefits and equal profit sharing.
by Peel L&P Environmental and the site on 22 June (2020) and it is just the start Beyond that, there is the sheer size of the
clusters together innovative technologies, of its ambitious plans. The Chinese firm project which covers and area of more than
connecting energy-intensive businesses is planning to create a regional centre in 300 square km. It is also crucial for Dutch
with sources of low-carbon energy. Hungary, from which it will manage further sustainability targets as it will supply green
The sponsor consortium achieved a gearing development in the 16 central and eastern electricity to some 280,000 households.
of 60:40, providing around £140 million in equity European (CEE) countries. And then there is the decommissioning and
with the remainder provided by four banks: Allied The 100MW power plant has been built repowering assignment with permits to require
Irish Bank, ABN Amro, MUFG and Siemens in Kaposvár and consists of two 49.28MW decommission of more than 200 old turbines
Bank. The tenor and pricing matched that projects. (around 170MW) in the area over multiple
reached on the 42MW Newhurst WtE project This deal wins the award based on the years, replaced by new and larger turbines.
in Lincolnshire, which the same consortium impact it is already having on the national A nearby airport and military radar station
brought to financial close in February 2020 – market as well as the knock-on effect for resulted in permitting of four turbine ranges
23 years, pricing at Libor +225bp. neighbouring nations. It is also to recognise and consequently four different turbine
The £140 million of equity on the Protos the efforts being made by CMC to drive the types will be built. WPZ will also construct
plant is split among the three firms, whose green agenda as it has plans to invest up to and operate its own substation and export
shareholding is: Biffa with 25%; while €1 billion in Hungary alone. cable, placed in a separate SPV (GridCo)
Covanta and GIG each have 37.5% in The investment in Kaposvár boosts to which Raedthuys and Eneco will also
equity. Construction of the facility is led Hungary’s solar power capacity of 2,300MW connect 4 turbines each. Everyone in the
by a joint venture between Mytilineos currently installed by 5%. The increase in PV vicinity was eligible to participate financially
and Standardkessel Baumgarte, both capacity is roughly equivalent to the annual and around 90% did so. Once construction
established players in the UK waste sector. energy demand of 65,000 people and will is complete, participation possibilities will be
Covanta is supplying technical oversight eliminate 120,000 tonnes of carbon dioxide opened up to a wider group.
during construction and operation of the emissions. The many specific features and resulting
facility for an initial 20-year term, while Biffa The Hungarian solar market is trending bankability items were mitigated in
will provide the majority of the waste-supply up with capacity from this renewable source agreements with stakeholders and carefully
through a long-term agreement. having quadrupled from 2015-20. This is set detailed in extensive due diligence reports.
The plant is construction-ready and is to continue up to 2030 when the national Success of the strategy was underlined by
expected to reach full operations in Q1 2024. goal is to have 6GW installed. the project reaching FC within tight timelines.
Projects like Protos are particularly important The modules were provided by Chinese
in the UK in the run up to the re-scheduled manufacturers JA Solar and JinkoSolar, both Advisers:
COP26 this year, and efforts continue to of which secured a 50MW supply contracts. • Green Giraffe
improve the UK’s waste infrastructure and • Incredible World
progress towards a low-carbon economy. • Clifford Chance
Advisers: • Norton Rose Fulbright
• Macquarie • Mott MacDonald
• Ashurst • Benatar & Co
• Linklaters • Baringa
Advisers: • Mazars
• CMS • Allen & Overy
• Gowling WLG • AON
• Ashurst • Chatham Financial
• Hogan Lovells • Kinsteller
• Mazars • HVK Stevens

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IJGlobal Awards 2020 Europe
2020

European oil and gas European Export Finance European mining


Amur Gas Processing Plant Northvolt Project Taishet
The winner of the European O&G award Northvolt has won the European export The winner of the European mining award
is Amur Gas Processing Plant (AGPP) in finance award for the financing of two is the Taishet Aluminium Smelter (TaAZ), a
Russia, a project that plays a key role in the lithium-ion battery cell gigafactories in deal that marks a significant achievement
transition from coal-fuelled power and heat Sweden and the significant involvement of for Russian and global aluminium players
generation in the region. development finance institutions. and showcases further steps towards
AGPP is Russia’s largest natural gas The project is valued at $3 billion and the reducing the level of greenhouse gas
processing enterprises and indeed one of $1.6 billion debt financing package was emissions from production.
the largest such facilities in the world. This provided by a large group of commercial The financing will be used for the design,
project is of huge strategic importance for banks and pension funds as well bringing construction, development and operation of
the Asia-Pacific region and it is one of the in considerable support from the European the start-up phase of TaAZ and the partial
largest project financings ever with total Investment Bank, the Nordic Investment Bank refinancing of investments made in 2020.
debt financing of €11.4 billion. and the Export-Import Bank of Korea (KEXIM). Following commissioning, TaAZ will
The transaction itself involved three ECAs, The loan is structured with guarantees become one of the most environmentally
14 international commercial banks, three from Euler Hermes, Nippon Export and friendly and high-tech enterprises in the
Chinese and five Russian banks. It achieved Investment Insurance (NEXI) and Bpifrance. global aluminium industry. The plant will
a 15-year door-to-door tenor on uncovered The combined roles of the EIB, NIB, have an annual production capacity of
tranches – unprecedented for a downstream KEXIM, Euler Hermes, NEXI and Bpifrance 428,500 tonnes.
O&G project in Russia. secured this deal the export finance award. TaAZ is owned by Russian aluminium
The Amur plant is an important part Northvolt is a European supplier of producer RUSAL and a syndicate of Russian
of the state-sponsored development of sustainable, high-quality battery cells and banks – VTB and Gazprombank – provided
Russia’s O&G reserves in eastern Siberia systems. It was founded to enable the a RUB45 billion ($603.2 million) syndicated
and the expansion of major export routes European transition to a decarbonized financing for the completion of the first start-
into China and the APAC region. It forms an future, and the company has made swift up complex of the smelter.
integral component of the process chain of progress on its mission to deliver the The new smelter will be one of the
natural gas supply to China via the Eastern world’s greenest lithium-ion battery with a RUSAL’s key assets in Siberia and also be
Gas Route under the SPA signed between minimal CO2 footprint. Among the Northvolt one of the largest non-ferrous smelters
Gazprom and CNPC in 2014. industrial partners and customers are ABB, in Russia. It will be equipped with
More than 25,000 people are engaged BMW Group, Scania, Siemens, Vattenfall, energy efficient RA-400 “T” modification
in the construction of the project and about Vestas and the Volkswagen Group. electrolysers. Today RA-400 is one of the
3,000 jobs will be created during operations, The debt and equity of more than $3 most powerful electrolysers in the world and
which will process some 42bcm of natural billion support the development gigafactories can produce about 3 tons of aluminium
gas each year. The Eastern Gas Route will and investments in R&D, industrialization and daily.
provide significant environmental benefits recycling. It targets a 25% market share in Upon start-up of the first series, the
to the region by supplying natural gas to Europe by 2030 with 50% of raw material production complex of the Taishet smelter
China’s historically coal-burning north east. secured from recycled batteries. will include 2 electrolysis units, a foundry,
The project company – Gazprom Northvolt Ett, with a potential annual anodic and energy units, as well as
Pererabotka Blagoveshchensk (GPPB) output of 40GWh, is under construction and infrastructure facilities.
– is wholly owned by Gazprom through scheduled for start of production this year The site was chosen to minimize
subsidiaries and is responsible for the (2021). The financing is underpinned by the impact of the plant on the regional
DBFOM. A long-term gas processing world-class financial institutions supporting environment and the plant will be equipped
agreement between Gazprom and GPPB a new industry in Europe – a clear sign of with modern dry gas cleaning systems with
ring-fences the project company and its where the market is headed. a capture efficiency of more than 98.5%.
lenders from supply, offtake and market risks. This new industrial landscape will need Oleg Mukhamedshin, RUSAL’s director of
Multi-component feed gas will be significant investment over the coming strategy, BD and financial markets, said at
delivered to the project via the Power of years and will bring more opportunities the time of financial close: “The construction
Siberia gas pipeline system from the Yakutia for financing sustainable projects – with of the Taishet aluminium smelter is one of
and Irkutsk gas production centres within the Northvolt now serving as a pathfinder. the priority development projects for the
Eastern Gas Programme. AGPP is designed This transaction also supports the company, a significant part of the costs
to produce sales gas, sales helium, ethane, regional economy by allowing European of which RUSAL has provided at its own
and liquefied hydrocarbon gases. electric vehicle manufacturers to source expense.
their batteries locally, thereby protecting “The funds raised under the agreement
a large number of qualified jobs in the with VTB and Gazprombank, will be
regional automotive industry in the face of used to finance the completion of the
increasing global competition. construction of the smelter, which after
Advisers: commissioning will become one of the
Gazprombank, ING, China Advisers: most environmentally friendly and high-tech
Development Bank, Freshfields BNP Paribas, Morgan Stanley, Milbank, enterprise in the global aluminium industry.”
Bruckhaus Deringer, Herbert Smith Linklaters, Mannheimer Swartling,
Freehills, Linklaters, Norton Rose Latham & Watkins, White & Case, Allen
Fulbright, Ramboll, RINA Group, & Overy, Advokatfirman Cederquist, Advisers:
Advisian, PwC, BMS Group, Bankserve Wistrand, Arup, BMI White & Case

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IJGlobal Awards 2020 Europe
2020

European digital infrastructure FttH


THD Loire-Atlantique
The winner of the digital infrastructure award as some 113,000 lines, currently deployed pioneer in the FttH sector, obtained through
in the FttH category for Europe is the THD by Orange under a CREM scheme, that its 10 years partnership with Axione, and
Loire-Atlantique – a significantly impactful will be provided to the concessionaire on a confirms its longstanding strategy to provide
deal to improve connectivity across rural lease and operate basis. ultra-fast broadband connection to all
areas of France. The consortium, through its FIBRE44 French households.
The Loire-Atlantique department launched special purpose vehicle that was The process of labialization of the
a competitive tender for the fibre-to-the- established for this project, signed the financing as a green and social loan by
home (FttH) project that was won after a concession agreement with the Loire- a third-party adviser is now achieved,
fiercely competitive process by Vauban Atlantique department on 7 July 2020. reflecting the tremendous benefits
Infrastructure Partners and its partner The project, which is part of France’s provided by the project in terms of equality,
Axione, the largest French wholesale €20 billion high speed network plan – Plan improvement of access for rural territory,
independent operator in the sector. France Très Haut Débit – that launched in integration, employment and training.
The FIBRE44 consortium was awarded 2015. This is one of the biggest and the
the 30-year concession contract for the roll- last PINs to be awarded and was the largest
out, commercialisation and operation of an greenfield project closings in 2020 under a Advisers:
ultra-fast broadband public initiative network concession scheme in France. • Societe Generale
(PIN) in the Loire-Atlantique department. It will enable the department to reach its • Linklaters
The project covers the rural areas of the objective to provide 100% of department • Clifford Chance
department, and is a mixed concession and households with ultra-fast broadband • White & Case
affermage contract, with around 200,000 access by 2025. • Mazars
lines to be built on a DBFOMT basis over For Vauban Infrastructure Partners, this • Natixis
the course of four-and-a-half years, as well project strengthens its reputation as a

European battery storage


Northvolt

The first ever project financing to develop a


greenfield lithium-ion battery manufacturing
plant project – what else could win the
European battery storage award other than
the $3 billion Northvolt deal?
Northvolt is Europe’s first home-grown
gigafactory for lithium-ion battery cells and
will supply batteries for a wide selection
of end markets that range from electric
vehicles through to energy storage systems,
portable and industrial applications.
Basically, this deal feeds into Europe’s
ambitions to enable some of the most
exciting projects on the radar… many of
which are still faint blips. This is very much opportunities for financing sustainable from Euler Hermes, Nippon Export and
a project of its day as the momentum for projects – with Northvolt now serving as Investment Insurance (NEXI) and Bpifrance.
“green” solutions builds relentlessly. the perfect pathfinder. This transaction also
Northvolt’s customers need large volumes supports the regional economy by allowing Advisers:
of high-quality batteries with a low CO2 European electric vehicle manufacturers • BNP Paribas
footprint, and these gigafactories are a to source their batteries locally, thereby • Morgan Stanley
solution to the challenge Europe faces to protecting a large number of qualified jobs • Milbank
build a fully regionalised value chain to in the regional automotive industry in the • Linklaters
support this industry. As such, the project face of increasing global competition. • Mannheimer Swartling
has strong support from more industrial The $1.6 billion debt financing • Latham & Watkins
partners than you can shake an electrode at. package was provided by a large group • White & Case
The financing is underpinned by world- of commercial banks and pension funds • Allen & Overy
class financial institutions supporting a new as well bringing in considerable support • Advokatfirman Cederquist
industry in Europe – a clear sign of where from the European Investment Bank, the • Wistrand
the market is headed. This new industrial Nordic Investment Bank and the Export- • Arup
landscape will need significant investment Import Bank of Korea (KEXIM). The loan • BMI
over the coming years and will bring more is structured with certain guarantees

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94
IJGlobal Awards 2020 North America winning deals

2020

North America
winners
Winners in the North America transaction category are:
• Editor’s Choice North America – • North American petrochemicals – • North American renewables tax
Prince George’s County Schools Alberta Propane Dehydrogenation/ equity – ENGIE Jupiter Wind and
Polypropylene project Solar Portfolio Tax Equity Raise
• North American digital infra – MBTA • North American power, US – CPV • North American renewables, onshore
AFC 2.0 Project Reset Three Rivers Energy Centre wind – Western Spirit
• North American digital infra acquisition • North American refinancing, oil • North American social infrastructure,
– Zcolo Acquisition Financing & gas – Freeport LNG Train 3 energy – University of Iowa Utility
Refinancing System P3
• North American oil & gas – Whistler • North American refinancing, power
Gas Pipeline – Linden Cogeneration • North American social infrastructure,
education – Prince George’s
• North American battery storage – • North American refinancing, County Schools
Bolt Battery Storage renewables – Project Arcadia
• North American transport, brownfield
• North American export finance – • North American renewables, solar –
– Iowa Interstate Railroad
Verizon Communications Highlander
• North American renewables, • North American transport, greenfield
• North America power – Canada – Highway 104
geothermal – Geysers Facilities
900MW Cascade Power Project
Project • North American water – San
• North American oil & gas – Canada • North American renewables M&A – Antonio Water Vista Ridge P3
Coastal Gaslink Pipeline Sunrun acquisition of Vivint Solar Refinancing

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IJGlobal Awards 2020 North America
2020

Editor’s Choice North America -


Prince George’s County Schools
The pathfinder Prince George’s County Schools project in Maryland has been singled out by
Editor Ila Patel for the IJGlobal Editor’s Choice Award for North America.
Over the last 10 years, while transport Maryland’s Prince George’s County became the first district in the US to finance
projects have continued to be procured the construction of 5 new middle schools and one K-8 school using the P3 model
in dribs and drabs, social infrastructure
deals have begun to emerge slowly as the
next hotspots for investment. They include
universities (and their utility systems),
courthouses, student accommodation and
waste.
But there is one sub-sector that has the
potential to grow - and that is elementary
schools. Numerous US municipal and state
budgets are bearing the burden of the global
pandemic which is why P3s can provide a
solution to repairing and rebuilding aged
infrastructure. P3s also provide budget
certainty, and with any luck, more and more However this litigation process left a The Northwestern Mutual Life Insurance
districts will realise this and consider the bad impression so it came as no surprise Company, Metropolitan Tower Life Insurance
benefits to support the education of students when public opposition against the schools Company, MetLife Insurance, MetLife
while saving millions of dollars. project increased with town halls being Insurance Company of Korea, Swiss re Life
In 2020, Maryland’s Prince George’s held in Q3 2020, with complainants raising & Heath America and Aviva Life & Pensions.
County became the first district in the US concerns over the private sector’s financial MetLife Investment Management (MIM)
to finance the construction of 5 new middle motivation not being in line with that of the was the lead investor with a circa $200
schools and one K-8 school using the populace. million allocation, representing 42.5% of
P3 model, despite the negative publicity Prince George’s County Public Schools total debt to be drawn through June 2023.
surrounding another P3 deal in the state (PGCPS) said it had made a robust Deutsche Bank Trust Company Americas
which was embroiled in legal troubles. So it contract taking all concerns into account acted as collateral agent with National Bank
came as no surprise when there was public and protecting the interest of the public, of Canada as account bank.
opposition against the schools project and money and its timeline. The procurer also The equity sponsors on the deal were
it was deemed too risky and not having the outlined as to why the P3 method was more Fengate (75%) and Gilbane (25%).
interests of children’s education as its priority. beneficial to the state than a traditional Bob Hunt, managing director, public
Maryland’s controversial Purple Line construction method. The deal made it to institutions at JLL, said: “This P3 is so
P3 project saw disputes arise between financial close in December 2020. special because it is a major step forward
concessionaires Meridiam and Star America The board of education of Prince in delivering equal opportunities to the
(and at the time construction partner Fluor) George’s County operates 240 facilities students and families of Prince George’s
and the Maryland Transit Administration with an annual operating budget of $2 County. Without this agreement in place,
(MTA) in 2020 due to an estimated $800 billion. PGCPS is currently facing acute it would take more than 15 years for these
million in cost overruns and delays in overcrowding in its schools with a vast schools to get funded and built. Of the
construction. Fluor is no longer part of the majority of the county’s school portfolio at many learnings uncovered from this year’s
concession with a new construction partner or near the end of its useful life-cycle and in pandemic, I think we can all agree on the
currently being sought. need of significant repair and renovation. pivotal role our schools and their faculties
The MTA sought a restraining order as The financing comprised $479 million in play in the lives of our children.”
part of a lawsuit filed on 10 August 2020 senior secured notes issued by borrower
against the companies in the Circuit Court Prince George’s County Education &
for Baltimore City. The lawsuit accused Community Partners in a private placement
Purple Line Transit Partners of breach of for the project to DBFM 6 new schools. The Advisers:
contract. note purchasers were Banner Life Insurance • JLL
By the end of 2020, an amicable Company, Legal and General Assurance • Winston & Strawn
resolution was reached with the State of Society, The Canada Life Assurance • Torys
Maryland agreeing to pay P3 partners Company, The Canada Life Insurance • Altus Group
Meridiam and Star America $100 million by Company of Canada, Massachusetts • Operis Group
31 December with the remaining amount to Mutual Life Insurance Company, The • INTECH Risk Management
be paid this year (2021). Lincoln National Life Insurance Company,

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IJGlobal Awards 2020 North America

Best digital infrastructure award, North America


MBTA AFC 2.0 Project Reset
The Massachusetts Bay Transportation Additionally, the project’s scope includes of this MBTA project to the greater Boston
Authority’s (MBTA) automated fare collection the digitisation of the Orange Line’s area is significant as it will have a positive
system services project (AFC 2.0) has signalling system, reducing manual labour, impact on the lives of millions of riders in
been selected as the winner of the digital time and money spent on maintenance, and Massachusetts. It is the first P3 in New
infrastructure award for North America. improving service reliability. England, the first P3 for the MBTA and the
The project, which was awarded to a By delivering the project using a P3 first P3 for an Automated Fare Collection
John Laing tie-up with Cubic Transportation structure, the MBTA was able to reduce its system.
Systems in 2017, has been lauded as the risk exposure to technology and installation. “The timing of the deal was especially
first fare collection P3 in the US. It originally “This isn’t just the next generation of fare challenging in light of the pandemic, with
closed in 2018 and in 2020 the project’s collection, but an entirely new way that financial close achieved on 15 June 2020.
scope was amended and expanded, and a our customers will interact with the MBTA,” The team faced financial market liquidity
refinancing was carried out. says Luis Manuel Ramirez, MBTA general constraints, financial market uncertainties,
The project encompasses the design, manager. resourcing constraints, government imposed
implementation, operations, management John Laing provided $24.3 million – 90% lock-downs and travel restrictions. The
and financing of a next-generation fare – of the equity and Cubic provided the deal team had to pull together to show
payment system to serve the MBTA’s multi- remainder. The debt had a 12-year tenor commercial agility, creativity and count on
modal regional transit system. and was provided by CIBC, MUFG, SMBC, the strength of their client relationships. It is
AFC 2.0 will streamline payments across National Bank of Canada, Metropolitan Life great to have this hard work recognised with
the transit network, speed up the boarding Insurance Company, Metropolitan Tower this prestigious award.”
process for passengers, reduce fare evasion, Life Insurance Company, Pensionkasse
and reduce operational costs by $65 million des Bundes Publica. CIBC also acted as Adviser to the sponsors:
over the life of the contract. It will also allow administrative agent and MUFG as collateral • Torys
for more flexible payments, with the ability agent. • Winston & Strawn
to offer benefits such as zone and distance- David Wylie, asset director, North America • Altus
based fares, time-of-day fares, and fare at John Laing, said: “We are delighted with • BFIN
capping. this award from IJGlobal. The importance

John Laing is delighted


that Massachusetts Bay
Transportation Authority
(MBTA) – Automated Fare
Collection 2.0 Project Reset
and Refinancing – has been
named North American
Digital Infrastructure Deal
of the Year by IJGlobal in
June 2021.

laing.com
MAKING
INFRASTRUCTURE
HAPPEN
www.ijglobal.com Summer 2021
97
IJGlobal Awards 2020 North America
2020

North America - digital infrastructure acquisition


zColo Acquisition Financing
The financing package backing DataBank’s
$1.4 billion acquisition of zColo’s data
centre assets has been selected as the
winner of the awards for best digital
infrastructure, North America.

The debt package consisted of several


components:
• $450 million first lien term loan A
• $500 million first lien revolver
• $100 million second-lien term loan

The deal involved the acquisition of and a second closing involving French With the acquisition of zColo’s assets,
zColo’s 44 data center facilities across 23 assets occurring at a later date to allow for DataBank offers its customers access to:
markets, adding to DataBank’s existing approvals to be processed. • 65 data centres in 29 markets (up from
portfolio of 20 assets. The transaction was funded by an 20 data centres and 9 markets)
This “transformative transaction puts investor group led by Colony Capital, • 1.1 million raised square feet of data
DataBank at the forefront of the edge DataBank’s controlling shareholder. In centre space
infrastructure wave,” enabling clients to addition to leading a consortium of world- • 141MW of installed UPS capacity
move their services closer to end-user class institutional investors to support the • Over 30,000 network cross connects
populations in second-tier markets, says acquisition, Colony Capital invested $145 • 20 major network interconnection points
DataBank. million from its balance sheet to maintain its • 13 cloud nodes
Given the scope and nature of the 20% stake in DataBank.
acquired assets, the financing required Market players involved in the debt Advisers:
a unique level of collateral review and package included TD Securities, Société • DH Capital
diligence. The deal also involved staged Générale and Truist Bank, TD, Société • Jones Day
closing, with the first involving US and Générale, CoBank, Regions Bank and • JP Morgan
UK assets occurring in December 2020 Natixis. • Skadden Arps

North America oil & gas deal of the year, US


Whistler Gas Pipeline

The Whistler Pipeline is jointly owned by The unique bank-bond hybrid comprised The project’s construction schedule
WhiteWater Midstream, MPLX and a joint an $820 million term loan A, $110 million in necessitated launching the financing at
venture of West Texas Gas and Stonepeak DSR LC facilities, and a dual-tranche $824 the height of the pandemic with market
Infrastructure Partners. The project is for million US private placement. dislocation exacerbated by the Russia-
the construction and operation of a 500- The majority of the project’s 2.0 Bcf/d Saudi Arabia standoff, which generated a
mile greenfield natural gas pipeline Texas, capacity is contracted through 10 to negative oil futures environment during the
connecting the Permian Basin to the Agua 12-year transport service agreements transaction.
Dulce hub, providing direct access to the with contracted volumes from primarily
South Texas markets as well as LNG and investment grade counterparties. The
Mexican exports. Whistler Pipeline has unmatched Advisers:
It was the largest hybrid greenfield connectivity to the Delaware Basin with 10 • Milbank
project financing on record and the first connections in Waha, including indirect • Latham & Watkins
ever greenfield pipeline project to obtain connections to 16 gas processing plants • Sidley Austin
a Baa3 investment-grade (private) rating through the Agua Blanca system, and to the • Lummus Consultants International
from Moody’s. It was funded through a Midland Basin, via a 51-mile, 36 inch lateral • Moore McNeil
combination of equity, term loan, and connecting directly to Midland Basin gas • Wood Mackenzie
private placement proceeds. processors.

www.ijglobal.com Summer 2021


98
IJGlobal Awards 2020 North America
2020

North American battery storage deal of the year


Bolt Battery Storage
In September 2020, financial close was
reached on Bolt Energy Finance’s senior
secured credit facilities. Bolt is a special
purpose entity established by LS Power for
the construction and operation of a 490MW
battery energy storage system portfolio
comprising 3 projects located in California.
LS Power wrapped $300 million in senior-
secured credit facilities and secured the
non-recourse funds from a lending quartet
comprising BNP Paribas, ING Bank, MUFG
and RBC Capital Markets.
The senior-secured credit facilities renewable portfolio standards, emission
comprised a 3.3-year $260 million goals, and abundance of solar power Advisers:
construction to term loan and a $40 million available in the CAISO market. As renewable • Shearman & Sterling
revolver credit/letter of credit facility. generators continue to increase as a
• Latham & Watkins
The portfolio is made up of the 250MW percentage of California’s generation base,
Gateway, 200MW Diablo, and 40MW Vista • Lummus Consultants International
increased deployment of battery storage
projects. technology is critical to balancing electricity • PA Consulting
The main drivers for building battery from intermittent resources to ensure grid • Stance Renewable Risk Partners
storage are California’s aggressive reliability.

North American export finance deal of the year


Verizon Communications

Global telecommunications company However, with the instability in the recovery following months of instability in
Verizon Communications closed on 2 markets created by the COVID-19 the market. Our team has long supported
corporate financings with Deutsche Bank pandemic, Verizon returned to the ECA the quick and seamless execution of unique
in June 2020 which included a $1.5 market with 2 big-ticket financings. These financings across industries, and foresees
billion EKN guaranteed (and SEK funded) financings demonstrate the importance this trend to continue as companies react to
financing and a $500m Finnvera guaranteed agency lenders play in the rebound of the the fall out of the pandemic.”
financing. financial markets even for investment grade
Verizon used the financing to purchase borrowers like Verizon.
equipment in connection with the build At the time of financial close, Joseph Advisers:
out of the 5G network. Verizon had not Stefano, banking and finance partner • Allen & Overy
accessed the ECA supported financing in A&O’s New York office, said: “These • DLA Piper
market for several years as it was able to financings illustrate how key ECA backed • Vinge
obtain better pricing in the bond market. financings will be to prop up economic

www.ijglobal.com Summer 2021


99
IJGlobal Awards 2020 North America
2020

North America power deal of the year, Canada


900MW Cascade Power Project
Alberta based developer Kineticor The loan priced at 350bp over CDOR with Nations groups which agreed to invest C$93
Resource Corp with joint development banks involved including National Bank of million for an equity stake in the project.
sponsors, Macquarie Capital and Ontario- Canada, Alberta Treasury Branches, Nomura, While remarkable for its long list of ‘firsts’
based pension fund OPTrust and project MUFG, ING, Siemens, Natixis, Canadian and creative solutions to challenging credit
sponsors OPTrust, Axium Infrastructure and Western and Fiera Infrastructure private debt nuances, Cascade’s closing was perhaps
DIF Capital Partners successfully closed fund. even more exceptional when scrutinised
financing on the C$1.5 billion Cascade Cascade will lead the transition to a against the backdrop of a global pandemic,
Power Project in 2020. lower carbon intensive power grid in Alberta and the market uncertainty that came with it.
Cascade is a 900MW combined cycle by supporting the province’s transition off
natural gas-fired generating facility to be coal-fired power, generating low emissions
located near Edson, Alberta. Siemens electricity that is expected to supply over Advisers:
Energy will provide two highly efficient 8% of the province’s average demand. • Macquarie Capital Markets Canada
single shaft SCC6-8000H power trains The transaction is the first gas-fired quasi- • McCarthy Tétrault
and provide maintenance support under merchant power project in Canada, and will • E3 Consulting Services
a long-term service agreement. Cascade be the most efficient gas-fired power project • EDC Associates
is strategically situated in proximity to in Alberta. • Marsh LLC
significant gas production as well as the Cascade was a unique and challenging • Bennett Jones
NGTL System and high voltage electrical financing, requiring the combined analysis • Torys
transmission lines, an important competitive of the Alberta merchant energy market, • Osler Hoskin & Harcourt
advantage for Cascade. three Gas Netback Supply Agreements, and • Stikeman Elliott
The project will interconnect to the Alberta intricately complex term loan repayment • Davies Ward Phillips & Vineberg
Electric System Operator grid via 2 pipelines mechanics - including fixed principal • DLA Piper (Canada)
currently under construction. The transaction payments and cash sweeps to meet a target • Miller Thomson (Calgary)
featured a C$834.4 million construction debt balance schedule, as well as an excess • Duncan Craig (Edmonton)
loan and C$75.6 million of LC facilities cash flow sweep mechanism in later years to • Witten
that convert to a term loan upon project mitigate the refinance risk posed by a C$910 • Biamonte
completion. The financing has a tenor of 7.5 million financing. The project also included • Bailey & Wadden
years. involvement from a total of 6 Alberta First

North American oil & gas deal of the year, Canada


Coastal GasLink Pipeline

Financial close was reached on Coastal with CGL to provide them with an
GasLink Pipeline’s (wholly owned by TC opportunity to acquire a 10% equity interest
Energy) 7-year C$6.6 billion senior secured in the CGL.
credit facilities in April 2020, representing CGL is a critical Canadian-based
the most advanced West Coast LNG project infrastructure asset that will provide feed
in North America. gas to the country’s first west coast LNG
Concurrent with this, TC Energy sold a export facility. It also represents a critical
65% equity interest in CGL to affiliates of component of Western Canada’s ability to
AIMCo and KKR. meaningfully realize the value of its vast
CGL is a 670km pipeline being natural gas resources, while supporting
developed by TC Energy that will, upon the coal-to-gas energy transition currently
completion, have the capacity to transport underway globally.
6.4 Bcf/d of natural gas from Dawson
Creek to an LNG facility in Kitimat, British Europe and Asia with sufficient ‘dry powder’
Columbia. to support the potential Phase II project Advisers:
TransCanada Pipeline, another wholly- expansion. The financing also included a • Norton Rose Fulbright
owned subsidiary of TC Energy, was C$200 million letter of credit. • RBC Capital Markets
mandated by Shell Canada and its partners The construction facility is the largest • Blakes, Cassels & Graydon
to design, build, own and operate the project finance facility and second largest • Lummus Consultants International
project. The project is expected to be in syndicated facility in Canadian loan market • Moore McNeil
service in 2023, with the capacity fully- history. Additionally, the interest rate swap • ERM
contracted to several investment grade executed for the project was the largest in • Wood MacKenzie
shippers. Canadian market history. • Operis
The transaction involved a widely Under the deal terms, TC Energy is also • Osler Hoskin Harcourt
syndicated lending group consisting 27 committed to working with the 20 First • Stikeman Elliott
banks participating from North America, Nations that have executed agreements

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100
IJGlobal Awards 2020 North America
2020

North American petrochemicals North American power deal of North American refinancing deal
deal of the year – Alberta the year, US – CPV Three Rivers of the year, oil & gas – Freeport
Propane Dehydrogenation/ Energy Centre LNG Train 3 Refinancing
Polypropylene project
Competitive Power Ventures, a developer, The $3.4 billion refinancing for Train 3 of
The Alberta Propane Dehydrogenation/ owner, and operator of utility-scale power the Freeport LNG facility to refinance the
Polypropylene project is one of the largest projects, reached financial close on its existing construction and operation debt,
petrochemical deals to take place in North 1,250MW Three Rivers combined-cycle closed in May 2020.
America. Pembina Pipeline Corporation, gas-fired project in Illinois with equity from 4 Proceeds of the financing were used to
in partnership with the Canada Kuwait co-investors and a combination of floating- pay down the existing bank debt for Train
Petrochemical Corporation, is developing and fixed-rate debt. 3 and hedge termination costs, pay for
the integrated propane dehydrogenation CPV Three Rivers was the first quasi- transaction costs and remaining costs for
plant and polypropylene upgrading facility to merchant gas-fired financing to close the completion, ownership, operation and
be operational by mid-2023. during COVID-19. The equity investors for maintenance of the Train 3 facility, and the
the $1.3 billion project were GE Energy payment of dividends to the sponsors.
Financial Services, Osaka Gas USA, Axium The financing included $2.4 billion in
Infrastructure and Harrison Street. BNP term loan facilities, a $750 million future
Paribas, Crédit Agricole and MUFG led on bond tranche term loan facility, $181
the $875 million construction-plus-5-year million DSR letter of credit facility and a $50
debt package, which closed in August million working capital loan. Eighteen banks
2020. participated in the financing.
The project was financed on the basis
of several gas-netbacks with undisclosed
Canadian gas producers, with tenors of up
to 10 years. Once completed, the project’s
capacity and energy will be sold into the
PJM ComEd Zone.
Even though CPV Three Rivers’ debt
quantum pushed against the size
constraints of the bank market, the deal was
able to achieve competitive loan pricing
initially targeted, without needing to flex, a The transaction reduced the project’s
remarkable achievement given the size of cost of debt and improved the overall
the transaction and the pandemic. credit profile for lenders. It was executed
At transaction closing, PJM and the FERC and closed during the height of COVID-19
had not yet agreed to rule changes for the market disruption and was only possible
Lenders on the deal were National Bank annual PJM capacity auctions, which caused due to the strength of banking relationships,
of Canada, National Bank of Kuwait, The the 2 auctions to be postponed. This delay high quality sponsorship and conservative
Bank of Nova Scotia, Bank of Montreal, reduced near-term visibility for a significant financing structure.
CIBC, Export Development Canada, MUFG, component of the project’s cash flow and Freeport 3 LNG is a 5 MTPA liquefaction
Union Bank and TD Bank. raised the question about future auctions. facility that is part of the Freeport LNG
The project will see the development of The structuring banks addressed this by Development in Quintana Island, Texas. The
a world-scale propane dehydrogenation requiring contingent equity and accelerated Freeport LNG Development was originally
facility with capacity for the conversion of an repayment mechanisms if auction prices fall developed in 2002 and later expanded in
estimated 23kbpd of propane into around short of forecast. 2014 into a liquefaction facility capable of
550kTa of 99% polymer grade propylene exporting LNG.
It would process 23,000 of Alberta The transaction replaced the existing
propane per day to produce more than holdco-level debt from May 2018 with opco-
550,000 tonnes of recyclable plastics level debt in order to optimise the sponsor’s
pellets each year, which would be used financing strategy.
for a variety of finished products such as Advisers: Construction of the project was 99%
automobiles, medical devices, food packing, • Milbank complete before the transaction closed.
and home electronic appliances. • Latham & Watkins
• Leidos
• Moore-McNeil
• ESAI Advisers:
• Riverside • Kirkland & Ellis
Advisers: • King & Spalding • White & Case
• Latham & Watkins • Sidley Austin • Societe Generale
• White & Case • Hunton Andrews Kurth • CIBC
• Dentons Canada • Bracewell • MUFG
• Stikeman Elliott • Shearman & Sterling • Natixis

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101
IJGlobal Awards 2020 North America
2020

North American refinancing North American refinancing of North American renewables deal
of the year, power – Linden the year, renewables – Project of the year, solar – Highlander
Cogeneration Arcadia
In July 2020, sPower reached financial close
The Linden Cogeneration facility in Linden, In 2020, TerraForm Power refinanced a on the $704 million Highlander Solar, a
New Jersey is a 974MW natural gas portion of a loan through a new senior 620MWdc/485MWac solar project located
cogeneration plant made up of 6 units. The secured note issuance lent at a 3.38% rate in Spotsylvania County, Virginia - one of the
first 5 units became operational in 1992, with a tenor of 23 years and 4 months and largest solar projects on the East Coast and
while the sixth came online in 2002. Of the 9.6 year weighted average life. the fifth largest in the US.
unit, 5 sell their output spot into Zone J of TerraForm Power acquired 322MW of Highlander Solar consists of 4 staggered
New York-ISO, and the other is contracted commercial and industrial rooftop solar, project phases with the site located 67
with Phillips 66 Co’s Bayway oil refinery until residential rooftop solar, and fuel cells in miles from Washington DC and more than
2032 and sells excess output spot into PJM the US from subsidiaries of AltaGas in 50 miles away from Northern Virginia’s
Interconnection. September 2019, paying $720 million ‘Data Centre Alley’ in the Dulles Technology
for the assets. The portfolio is among the Corridor, home to the world’s largest
largest distributed generation portfolios concentration of data centres.
in the US, with a strong presence in core The non-recourse debt financing
markets and a high level of diversification consisted of a $325 million tax equity
across 19 states and Washington DC. bridge loan, $256 million construction to
The deal brought TerraForm’s distributed term loan facility, $61 million term loan
generation portfolio to 750MW. facility and a $62 million letter of credit
facility. The financing incorporated a unique
strategy focused on pre-development
collaboration between off takers and the
The company is owned by a consortium sponsor.
of JERA Co, Ares Management Corp, The deal was executed on a club basis
Oaktree Capital, the Development Bank of with a group of project finance banks. In the
Japan, and HPJV1 – itself a joint venture end, 9 banks committed to the transaction.
between GS EPS and a fund managed by It was one of the first broadly syndicated
Hana Alternative Asset Management on renewable transactions to be circled post
behalf of Mirae Asset Daewoo. COVID-19 after 2 years of delays and
The owners reached a $1.1 billion deal unexpected obstacles - a testament to
with 6 banks (Jefferies, Barclays, Citi, MUFG, the company’s experience, the quality of
BMO Capital Markets, and Investec) to the underlying asset, and the support of
refinance an existing term loan B and pay financing partners.
a dividend to the owners. Jefferies served The project is located within the PJM
as the left lead on the transaction, which To fund the initial acquisition of the Interconnection and is supported by seven
reached financial close on 1 October. portfolio in 2019, TerraForm secured a $475 15-year PPAs with high-profile, well-rated
The term loan will be portable in the million non-recourse bridge loan with a 364- counterparties including Apple, Etsy and
event the asset is sold, as long as the buyer day maturity and the option to extend for up Microsoft, highlighting the growth of data
already owns gas-fired generation facilities to an additional 12 months. centre and tech demand for sustainable
totalling at least 500MW. In addition to the The company raised $296 million from sources of energy.
term loan, the refinancing also included a this refinancing. This transaction was Once complete, the project will offset
$100 million 5-year super senior revolving underpinned by operating projects with about 825,000 tonnes of carbon dioxide
credit facility. long-term PPAs extending until 2044 emissions per year. In fact, ESG corporate
The 7-year term loan B was priced at with predominantly investment-grade (or goals were taken into consideration
Libor+350bps (with a 1% Libor floor) and equivalent) federal, municipal or utility throughout the transaction.
received strong interest from investors counterparties. The 23.3-year maturity took PV modules will be supplied by Jinko,
during syndication; as such, it was resized advantage of the full life of the contracted the world’s largest module manufacturer,
from $950 million to $1 billion. The deal cash flows and enabled the sponsor to lock and inverters will be provided by SMA, the
benefited from being one of the few new in interest expenses at current low rates for world’s third largest inverter manufacturer.
infrastructure term loan Bs at the time, the long term.
meaning the sponsors had the demand for Natixis and the Royal Bank of Canada
themselves. served as the joint placement agents on
Moody’s Investors Service and S&P the bond financing. The deal closed in
Global Ratings assigned Ba3/BB- ratings September 2020 and was rated BBB- by Advisers:
to the term loan and Ba2/BB- ratings to the Fitch. • Sheppard Mullin Richter & Hamilton
revolver. • Milbank
• DNV GL
Advisers: Advisers: • nFront Consulting
• White & Case • Milbank – legal • Moore McNeil
• Latham & Watkins • Skadden – legal • CohnReznick Capital

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102
IJGlobal Awards 2020 North America
2020

North American renewables deal North American renewables North American renewables tax
of the year, geothermal M&A deal of the year – Sunrun equity deal of the year – ENGIE
Geysers Facilities Project acquisition of Vivint Solar Jupiter Wind and Solar Portfolio
Tax Equity Raise
This $1.1 billion Geysers Facilities Project Vivint Solar acquired Sunrun, a leading
was a Climate Bond Certified deal that saw home solar, battery storage and energy The deal saw ENGIE North America
the refinancing of assets owned by Geysers services company, in an all-stock negotiate the sale of a 49% stake in its
Power Company – 13 geothermal power transaction valued at $9.2 billion - the 2.3GW renewables portfolio (Project Jupiter) to
plants in the Mayacamas Mountains region, second largest solar deal in 2020. Hannon Armstrong Sustainable Infrastructure
75 miles north of San Francisco. Founded in 2007, Sunrun pioneered Capital. The portfolio covers 9 wind projects
The projects went online between 1971 home solar service plans to make local (totalling 1.8GW) and 4 solar projects (500GW)
and 1989, and together the assets are clean energy more accessible to everyone across ERCOT, MISO, PJM Interconnection,
the largest complex of geothermal power for little to no upfront cost. Sunrun’s and the Southwest Power Pool. The projects
plants in the US – responsible for providing innovative home battery solution, Brightbox, have a wide range of corporate offtakers
almost one-tenth of the renewable power brings families affordable, resilient and including Amazon, Microsoft, and Walmart.
produced in California every year. Its steam reliable energy.
resources, interconnected fields and water
reinjection capabilities make the Geysers a
Sunrun pioneered home solar The deal will represent a major
unique geothermal facility with the capacity
to produce 725MW of electricity around the service plans to make local milestone in achieving ENGIE’s
clock.
clean energy more accessible goal of 9GW of additional
Calpine Corporation, of which Geysers
is a subsidiary, sought to refinance the to everyone renewable capacity by 2021.
portfolio to reimburse itself for its equity
investment, secure funds for O&M and Upon signing the deal, Hannon immediately
capital expenditure, and repay corporate Vivint Solar stockholders received 0.55 took its 49% stake in the 4 wind projects
and project-level debt. It agreed a shares of Sunrun common stock for each that had already come online. The other
refinancing arrangement with 12 banks: share of Vivint Solar common stock they projects were transferred into the portfolio
MUFG, BNP Paribas, Crédit Agricole, owned immediately prior to the completion upon commissioning. When the project is fully
Natixis, Mizuho, National Bank of Canada, of the acquisition. Post-closing, Sunrun had complete, it will represent a major milestone in
Sumitomo Mitsui, SunTrust Robinson a market capitalisation of around $17 billion achieving ENGIE’s goal of 9GW of additional
Humphrey, CoBank, Rabobank, ING Capital, based on the closing prices of Sunrun renewable capacity by 2021.
and DZ Bank. common stock and an enterprise value of ENGIE retains a controlling stake in
The financing comprised a $900 million, circa $22 billion on a fully-diluted basis pro- the portfolio and will continue to manage
senior secured 7-year term loan, a $130 forma. The combined company continues to the assets. In April 2020, the company
million RCF and a $70 million letter of credit. trade on the Nasdaq Global Select Market had secured US$1.6 billion tax equity
The loan was priced at Libor +200 bps, with under the ticker symbol RUN. commitments, bringing the total tax equity
pricing scheduled to step up by 12.5 bps At the time of closing, Lynn Jurich, commitments for the portfolio to almost
every 3 years. Sunrun’s CEO and co-founder, said: US$2 billion. The size of the portfolio and
Calpine’s attempts to refinance the “Together, we will provide affordable, reliable the magnitude of its tax equity financing
project were delayed by the Kincade and clean electricity at an exciting new demonstrates ENGIE’s successful
wildfires in the Geysers geothermal field, scale. With our compelling services, millions development in this market.
which broke out in October 2019, and of homeowners will rewire their homes The financing was notable for its single
resultant investor uncertainty. Calpine had with solar and batteries to enjoy enhanced tax equity structure. Financing wind and
initially aimed for a $2.07 billion, 4-tranche comfort and affordability. The combined solar projects together is an unusual step,
senior secured transaction led by Barclays, company benefits from broad market reach as the 2 project types typically benefit from
but the fire led initial plans to be shelved. and differentiated consumer offerings. A different forms of tax credit. This helped
Nonetheless, Calpine’s pedigree allowed it lower cost structure from greater scale will make the deal one of the largest portfolio
to maintain investor confidence and secure accelerate the transition away from polluting financings of wind and solar projects ever
the new refinancing on a slimmer, simpler and unreliable fossil fuels.” publicly reported.
basis than the initial proposal. Gwenaelle Avice-Huet, CEO of ENGIE
Advisers: North America, said: “This is an important
• Simpson Thacher step in our zero-carbon energy transition
• Wilson Sonsini Goodrich & Rosati in the United States, and we are excited
• Cooley to have the support of our strong partners,
• Weil Gotshal & Manges Bank of America and HSBC in this tax
• Gibson Dunn & Crutcher equity financing.”
• Fried Frank Harris Shriver & Jacobson
Advisers: • Credit Suisse Securities
• White & Case • Morgan Stanley
• Leidos Advisers:
• BofA Securities • Bank of America
• Latham & Watkins • Black & Veatch
• DNV GL • Orrick
• Axinn Veltrop & Harkrider

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103
IJGlobal Awards 2020 North America
2020

North American renewables deal of the year, onshore wind


Western Spirit
Pattern Energy’s $1.8bn financing for the
Western Spirit Wind was the largest project
in New Mexico and the largest single-
phase wind projects ever in the Western
Hemisphere. Western Spirit was also one of
the leading renewable financings to come
to the bank market.
The project is comprised of 2 elements, 4
wind projects located in New Mexico with a
combined capacity of 1,050MW and a 150-
mile transmission line.
The $1.2 billion construction loan and
$437 million LC facilities were successfully
underwritten by 6 financial institutions,
with 6 additional lenders joining in an Partners in 2018. Pattern then negotiated become a leader in renewable energy - and
oversubscribed secondary syndication. a build-transfer agreement to sell the the state’s recognition that the development
There was also an $80 million term loan. transmission line to the Public Service of transmission is a key component of that
The financing was structured to integrate Company of New Mexico (PNM) at policy goal.
the transmission line and all the wind commercial operation. The projects have 2 long-term PPAs, one
generation using the line, which was critical The transaction with PNM was the first 20-year PPA with the Southern California
for addressing lender concerns about time that a build-transfer agreement was Public Power Authority on behalf of the Los
project-on-project risk. used for the construction and sale of a Angeles Department of Water and Power
The project saw innovative strategies transmission line, introducing a structure and a 15-year fixed-price PPA with San Jose
employed to overcome a key challenge which could also be replicated for the Clean Energy.
faced by renewable developers - the lack construction and sale of transmission lines
of existing transmission capacity and the for offshore wind projects in the US. PNM’s
project-on-project risk that often hinders purchase of the transmission line provided
the development of new transmission with proceeds to repay the construction loans Advisers:
generation. used to build the transmission portion of the • Winston & Strawn
Pattern Energy first acquired the Western Spirit project. • Skadden
development rights to the Western Sprit The success of the project served as • Milbank
transmission line from Clean Line Energy validation of New Mexico’s commitment to

North American social infrastructure deal of the year, energy


University of Iowa Utility System P3

The University of Iowa Utility System procurement of the utility systems’ required of how an injection of private capital and
P3 is indicative of the growing trend for fuel and energy needs to optimise plant expertise can assist public institutions in
universities which are looking for ways to operation, ensure reliability and meet achieving their wider organisational priorities
raise funds and monetise existing assets to campus demand. This project aligns with (beyond mere profitability) on time and on
make much-needed energy infrastructure the university’s goal of being coal-free by budget.
improvements. This deal was the second 2025.
campus-scale university P3 in the US - The concessionaire (ENGIE and
following Ohio State University - and one of Meridiam) issued an A- rated (Fitch) 30- Advisers:
the largest projects in the entire sector. year $613 million private placement note • Allen & Overy
The $1.165 billion P3 project will rebuild along with sponsor equity. Banks also • Shearman & Sterling
the university utility system to provide provided a $259.7 million capex facility • Jones Day
more efficient steam, cooling, water and structured alongside the long-term debt that • Hunton & Williams
electricity over a 50-year concession. The will be drawn to finance the capex works • Allen & Overy
concessionaire will be responsible for the associated with the capital improvement • Lane & Waterman
O&M of the electrical systems, steam, plan. • Wells Fargo
domestic water, chilled water, sanitary The concession at the University of Iowa • Jacobs
and storm sewer, high-quality water, utility is particularly significant because it is being • Barclays
network maintenance, energy control centre, driven not only by economic efficiency • Norton Rose Fulbright
environmental compliance and related but also by the University’s strongly-held • E3 Consulting
distribution systems serving two campuses. commitment to sustainability and energy • Mazars
The O&M component also includes the conservation. It is a market-leading example

www.ijglobal.com Summer 2021


104
IJGlobal Awards 2020 North America
2020

North American social North American transport deal North American transport deal of
infrastructure deal of the year, of the year, brownfield – Iowa the year, greenfield – Highway
education – Prince George’s Interstate Railroad 104
County Schools
iCON V completed the acquisition of a 40% Nova Scotia’s Highway 104 Sutherlands
Prince George’s County in Maryland interest in Iowa Interstate Railroad (IAIS) River to Antigonish Twinning project was
became the first district in the US to from Henry Posner III in 2020 for $812.5 the first highway P3 project in Nova Scotia
finance the construction of 5 new middle million. in over 20 years and the first P3 project to
schools and one K-8 school through a P3, Henry Posner III retains a 60% interest reach financial close in the midst of highly
successfully closing the deal through a in the company, a leading regional freight volatile financial market conditions caused
private placement in December 2020. railroad which owns 412 miles of the 572 by the pandemic.
The deal is expected to pave the way miles of track on which it operates between The 63km long highway was procured
for future school deals in North America Iowa and Illinois. by the Nova Scotia Ministry of Transport
and is designed to accelerate the delivery and Infrastructure Renewal as a long-term
of critical school facilities, cutting the DBFOM project. The twinning of this stretch
delivery time in half with lower construction of Nova Scotian highway, from the boundary
costs and preventative maintenance, with New Brunswick to Antigonish, has been
while advancing economic inclusion a significant community concern for years to
goals through diverse and local business help reduce fatal collisions.
utilisation. The project closed during the peak of the
The winning consortium made up of first wave of the COVID-19 pandemic at a
Fengate Asset Management and Gilbane time when bond markets were in turmoil.
and Prince George’s County Education & However, due to cooperation and flexibility
Community issued $476 million in senior from all parties including government, bank
secured notes, rated an initial A2 by lenders and bond underwriters/purchasers to
Moody’s with a stable outlook. close the project, the financing closed with a
Following commercial and financial close, senior construction facility from CIBC, National
PGCPS and PGCECP together announced Bank of Canada and Royal Bank of Canada
the creation of a $1 million endowed and an offering of both medium-term and
fund supporting scholarships, student long-term bonds undertaken by National Bank
internships, mentoring opportunities and Financial and HSBC Securities (Canada).
apprenticeships valued at $4.7 million,
as part of the school system’s Alternative
Construction Finance Programme.
PGCPS has the second-largest school
system in the state and is among the 20
largest school districts in the US. More than
half of the 208 schools are over 50 years
old. A large percentage of its buildings need
replacement or complete renovation. Rory Hunter, director at iCON
Bob Hunt, managing director, public Infrastructure, commented at the time The debt financing included 2 long-term
institutions at JLL, said: “This P3 is so of final signing: “Over the years we have bond tranches, which took advantage of a
special because it is a major step forward known RDC, we have been continually flat yield curve to provide maximum value
in delivering equal opportunities to the impressed with their commitment to driving for money to the authority. The consortium
students and families of Prince George’s growth at their investments, whilst requiring building the highway is Dexter Nova Alliance
County. Without this agreement in place, the highest safety standards and customer GP and is made up of BBGI (50%), Dexter
it would take more than 15 years for these service levels. Through this partnership Construction (30%) and Nova Construction
schools to get funded and built. Of the we are excited to support Joe, Henry and (20%).
many learnings uncovered from this year’s the broader team in achieving our shared In light of the COVID-19 pandemic, the
pandemic, I think we can all agree on the objective of continuing the strong growth project agreement included customised
pivotal role our schools and their faculties trajectory of IAIS.” force majeure relief for epidemics and
play in the lives of our children.” pandemics during the construction period.

Advisers:
• McKinsey Advisers:
Advisers: • Sidney Austin • Blake, Cassels & Graydon
• JLL • KPMG • Aird & Berlis
• Altus Group • Arup • BoyneClarke
• Operis Group • Ramboll • Stewart McKelvey
• INTECH Risk Management • Marsh • Farris
• Winston & Strawn • Ryan Ratledge • BTY Group
• Torys • Convington • National Bank Financial
• EY

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IJGlobal Awards 2020 North America

North American water deal of the year


San Antonio Water Vista Ridge P3 Refinancing
Vista Ridge refinanced its existing $875 with much of the city residing in a drought
million senior secured bank construction Vista Ridge together with prone area. The Vista Ridge Regional
debt facility incurred following completion Supply Project provides an essential water
of the Vista Ridge Regional Water Supply
its co-issuer, Central Texas resource to this growing, previously water-
Project. The refinancing of the project’s Regional Water Supply constrained city.
construction debt took the form of a private Corporation (CTRWSC), The project consists of a 142-mile
placement. water transmission system that gathers
Vista Ridge together with its co-issuer, issued over $1billion of senior and transports perpetually leased raw
Central Texas Regional Water Supply secured fixed rate notes groundwater from Burleson County, Texas to
Corporation (CTRWSC), issued over $1billion deliver up to 53,000 acre-feet of water per
of senior secured fixed rate notes. The year to the City of San Antonio (the City).
amortizing notes have a final maturity date offering, which was over 6x oversubscribed.
of October 2049, leaving a tail of 6 months JP Morgan was the lead placement agent
until expiry of the term. while SMBC, ING, and Societe Generale Advisers:
In addition to the private placement, the served as placement agents. • White & Case
companies entered into a working capital The project is majority owned (75%) • Winston & Strawn
facility with Societe Generale to fund the by an investment vehicle managed • Hawkins Delafield & Wood
noteholders’ debt service account and to by Ridgewood Infrastructure. Majority • Jones Day
provide an additional source of working ownership occurred in August 2020 when • Mazars
capital for the project. Ridgewood acquired Garney P3, the • Milbank
The transaction was rated A by Fitch with majority equity stakeholder at 51%. San • Marsh
around 30 investors participating in the Antonio is located in an arid area of Texas,

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106
IJGlobal Awards 2020 Latin America winning deals

2020

Latin America
winners
Early in 2020 as the coronavirus pan- Winners in the Latin America transaction category are:
demic was building a head of steam,
• Editor’s Choice Latin America – EnfraGen
few people would have believed that so
many infrastructure and energy deals
• Latin American airport – Lima Airport
could have been driven on to financial
close – but that’s what happened. • Latin American digital infrastructure – Scala Data Centers
Latin America was no exception to • Latin American export finance – Amadeus JV
this trend as working form home made • Latin American highway – Autopista Urbana Norte
some wonder whether we ever need to
• Latin American LNG-to-Power – Marlim Azul Financing
return to the office!
Our thanks go out to those who • Latin American mining – Project Serrote
made the effort to submit for the • Latin American oil & gas – Cakua Offshore Gas Compression Station
IJGlobal Awards this year as we raise • Latin American power – Enfragen refinancing
an editorial hat to the industry.
• Latin American power refinancing – AES Panama refinancing
Congratulations all… • Latin American power transmission – Alupar Transmission Line
• Latin American renewables refinancing – INTI
• Latin American social infrastructure – Infraestructura Educativa II
• Latin American transport refinancing – Project Alma
• Latin American water – Sabesp
• Latin American renewables – Javiera/Sol del Desierto US private placement
• Latin American transport vehicles – Project Condor

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107
IJGlobal Awards 2020 Latin America
2020

Editor’s Choice Latin America -


EnfraGen
Editor Ila Patel selected the refinancing of EnfraGen’s existing debt for the Editor’s Choice
Award for Latin America
The refinancing of EnfraGen’s existing Following the refinancing, the portfolio will be expanded through the acquisition
asset-level debt for its project companies in of a 152MW solar portfolio in Chile and a 241MW brownfield CCGT in Colombia
Chile, Colombia and Panama represented
a landmark multi-jurisdictional transaction
for Latin America due to the sheer size
and complexity of it. The financing also
represented the largest debt deal in the
power sector in the region which will allow
for future acquisitions of operating assets.
EnfraGen – a developer, owner, and
operator of grid stability and renewable
energy infrastructure businesses in Latin
America – is jointly controlled by Glenfarne
Group (50%) and Partners Group (50%),
with operational and in-construction assets
totalling over 1.8GW of installed capacity.
The deal was submitted numerous
times in the refinance category and
warrants special recognition not just for
the refinancing, but for EnfraGen’s mission
to support zero-carbon emission electric
grids, while stabilising electricity pricing and
access in Colombia, Chile, and Panama,
delivering both environmental and social
benefits. JP Morgan and Scotiabank also acted as The cash flows for the portfolio are
When discussing the company awards global coordinators on the senior secured secured by stable capacity payments from
with IJGlobal’s independent panel of notes. regulators in Chile and Colombia and
judges, this transaction was highlighted on BNY Mellon was mandated as trustee, from PPAs with local utilities in Panama.
numerous occasions as part of company registrar, and paying agent for the bonds, as In Colombia, the company expects to
submissions with many commenting that well as offshore collateral agent and account earn energy revenues during times of low
they “wished they’d had the opportunity to bank for the entirety of the issued debt. hydrology which peak during El Nino cycles.
work on such a complex, multi-jurisdictional The 144A/RegS project bonds were the Efficient preparation and coordination
transaction”. first in the market to be done in parallel to allowed the sponsors to take advantage of
It also marks EnfraGen’s largest financing a bank financing which required extensive the strong credit market conditions after the
to date and official debut in the capital coordination across multiple business lines. US elections and promising developments
markets, allowing the sponsor to meet short The bonds received a split rating (BA3/BBB-) after the roll-out of the Covid-19 vaccine.
to medium term objectives of refinancing with a coupon of 5.375%.
its entire portfolio and further support its
growth strategy in Latin America. Assets owned by EnfraGen are:
The refinancing took place in December • a 610MW gas-fired plant (CCGT) in Advisers:
2020 and comprised a $710 million 144A/ Colombia • Paul Hastings
Reg S 10-year project bond offering and an • 4 operating thermal plants (309MW), • Hogan Lovells
oversubscribed 5-year $1.05 billion bank 5 thermal plants under construction • Millbank
debt package with 8 joint lead arrangers. (475MW), and 1 solar plant (9MW) in • Millbank
The banks and their roles were Societe Chile • Gómez-Pinzón Abogados
Generale (JLA and joint bookrunner), JP • 3 operating hydro power plants (30MW) • Claro
Morgan (JLA), BNP Paribas (JLA and joint in run-of-river hydro assets in Panama • Arias Fábrega & Fábrega (Arifa)
bookrunner), Scotiabank (JLA), Mizuho • Philippi Prietocarrizosa Ferrero DU &
(JLA and joint bookrunner), Intesa Sanpaolo Following the refinancing, the portfolio will Uría (PPU)
(JLA and joint bookrunner), SMBC (JLA and be expanded through the acquisition of • Sigma
joint bookrunner) and MUFG (JLA and joint a 152MW solar portfolio in Chile and a • Mazars
bookrunner). 241MW brownfield CCGT in Colombia.

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108
IJGlobal Awards 2020 Latin America
2020

Latin American airport Latin American digital Latin American export finance
Lima Airport infrastructure Amadeus JV
Scala Data Centers
The refinancing of Jorge Chávez International The US$1.8 billion Amadeus project in Brazil
Airport in Lima was chosen as the winner of In 2020, Digital Colony expanded its was an excellent example of client delivery
the Latin American airport deal of the year to presence in Latin America by launching in the midst of a global pandemic, winning it
refinance its existing debt and complete the Scala Data Centres and winning Latin export finance deal of the year in Latin America.
final stage of its expansion programme. American digital infrastructure deal of the The $1.8 billion project in Minas Gerais,
The airport is operated by Lima Airport year. Brazil involves the construction of one of the
Partners (LAP) with a 30-year concession Digital Colony established Scala Data world’s largest dissolving wood pulp (DWP)
that began in 2001. LAP is a consortium Centers in April 2020, following the plants, with a production capacity of up to
majority-owned by Fraport, with the IFC acquisition of assets from UOL Diveo. The 500,000 tons of dissolved wood per year.
holding a minority stake. hyperscale data centre platform in São It also includes a 144MW cogeneration
The refinancing saw LAP acquire a $450 Paulo is amongst the largest in the country. plant and the management of 70,000ha
million bridge loan from a consortium of 4 Shortly after acquiring its initial assets from of eucalyptus plantations. The project will
banks – BBVA, KfW IPEX-Bank, Scotiabank UOL Diveo, Scala began construction of a reduce greenhouse gas emissions by about
and SMBC – with financial close on 11 third data centre in São Paulo which, when 0.65 million tCO2 per year.
September 2020. The tenor of the bridge combined with existing facilities, will bring The Amadeus project is being developed
loan was 1 year. Scotiabank Peru acted as the company’s total data centre capacity to by LD Celulose (LDC), a joint venture
the administrative agent and SMBC served 50MW. between Lenzing and Duratex. LDC agreed
as the mandated lead arranger. Through this transaction, Digital Colony a $1.1 billion financing package with
The loan allowed the airport to avoid seeks to build a digital infrastructure IDB Invest, the IFC, and 7 international
further delays to its ongoing expansion platform in Brazil that can scale efficiently commercial banks guaranteed by
programme, which has proceeded despite through organic development and Finnvera (Banco Santander, BNP Paribas,
the uncertainties caused by the pandemic. acquisitions. UOL Diveo will continue to Commerzbank, Erste Group, HSBC, KfW
Lima Airport is a vital strategic hub in both partner with Scala to scale its own digital IPEX-Bank, and Raiffeisen Bank). The funds
Peru and Latin America, serving more than infrastructure requirements. cover the remaining financial needs of the
50 overseas cities through 15 airlines. Cloud growth, IT outsourcing and the industrial plant and 63% of the total capex,
The funding supported the construction adoption of new technologies such as 5G with the sponsors providing the balance.
of a second runway and a new air traffic are all projected to drive continued growth IDB Invest and the IFC each provided loans
control tower, which are scheduled for in demand for quality data centres that of $500 million with maturities of 9 and 11
completion in July 2022. These works are can support the next generation of mobile years, whilst international banks provided
part of the airport’s long-term expansion and internet connectivity. This has created around $147 million with maturities of 13 years.
plan, which will eventually see it open a a multibillion-dollar digital infrastructure The transaction was one of the largest
second terminal and accompanying apron opportunity in the region for companies in Latin America this year and will raise
by January 2025. which can support these trends and meet sustainability standards for the Brazilian
Matthias Zieschang, CFO at Fraport, said the demands of global customers. pulp industry and the forest management
after the deal was signed in September The launch of Scala is part of Digital sector. The cogeneration plant will produce
2020: “This excellent transaction is of Colony’s broader efforts to expand its bioelectricity from byproducts of the industrial
paramount significance for the development presence in Latin America, an underserved process, in turn increasing the share of
of Lima Airport. Secured in a very market for outsourced data centres. Digital sustainable biofuels and renewable energy in
challenging environment, this financing Colony previously acquired Highline do the Brazilian energy matrix. Around 40% of the
agreement sends out a strong and positive Brazil from Patria Investments in December excess bioelectricity generated can be used to
signal about Lima Airport Partners and the 2019, and the deal was its fourth investment supply the local public energy system.
entire Fraport Group. in Latin America. The company also owns The project has been responsible for
“Furthermore, the transaction underscores Andean Telecom Partners, active in Peru, the creation of thousands of jobs and the
the strong interest and demand from Chile and Colombia; and Mexico Telecom development of the region, reinforcing the
capital markets for financing well-managed Partners, one of the country’s largest private prominent position of Brazilian industry in
airports that have a long-term and positive tower companies. the cellulose sector. Construction began
perspective – such as Lima Airport Partners Marcus Piego, CEO of Scala, said at in May 2020, with the project expected to
with its major South American hub airport.” the time of announcement: “Scala’s Latin come online in 2022.
American investment strategy is highly
Lenders, advisers: compelling, and its quality data centres will LDC advisers:
enable the next generation of mobile and
• Garrigues Peru – legal (local) • Machado Meyer Advogados – legal
internet connectivity throughout the region.”
• Milbank – legal (NY) • Linklaters – legal

LAP advisers: IDB, IFC and Finnvera advisers:


• Rodrigo Elías Medrano – legal (local) • Allen & Overy – legal
Advisers to UOL Diveo:
• Paul Hastings – legal (NY) • PGA – legal
• DH Capital – financial
• SMBC – financial • Pinheiro Guimarães – legal

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109
IJGlobal Awards 2020 Latin America
2020

Latin American highway Latin American LNG-to-Power Latin American mining


Autopista Urbana Norte Marlim Azul Financing Project Serrote
The refinancing of existing debt for the A financial investment decision was The Serrote copper-gold project is an
Autopista Urbana Norte project was announced in January 2020 for the Marlim advanced stage, de-risked greenfield
selected as the winner the Latin American Azul natural gas-fired thermoelectric power open-pit copper-gold asset with financing
highway deal of the year. project. successfully executed despite challenges
The Autopista Urbana Norte is a special BNDES provided non-recourse long- that arose during the height of the pandemic.
purpose vehicle for Aleatica, which won the term financing for Vale Azul II, a 565MW The project is owned by Mineração Vale
30-year concession to operate the toll road combined cycle power plant in Macaé, Rio Verde (MVV) and sponsored by Appian
linking the Mexico City Periferico with the de Janeiro. The total value of the deal is Capital Advisory, an investment fund
Viaducto Bicentenario in 2010. Aleatica, around R$2.6 billion ($515m), with debt and focused on mining. MVV secured a $140
owned by the IFM Global Infrastructure equity of about R$2 billion ($396m). The million debt financing from a consortium
Fund, has a broad portfolio of transport loan serves both to finance construction of 4 banks – ING Capital, Natixis and
infrastructure in Mexico, Peru, Colombia, costs and to repay a bridge loan of R$97 Societe Generale – for the development,
Chile, Spain, and Italy. million ($19m) provided by SMBC. construction, completion, ownership, and
Aleatica refinanced its existing debt The project is sponsored by Marlim Azul, operation of the open pit copper mining
on the Autopista Urbana Norte through a consortium of Patria Investments (50.1%), project in Alagoas, Brazil.
a project finance agreement with Banco Shell (29.9%), and MHPS (20%). It is Shell’s The refinancing will cover all remaining
Santander, Banobras and Banorte, which first foray into the Brazilian energy sector, development costs for the project, which will
reached financial close on 27 March 2020. having initially joined the project as a gas eventually produce around 20,000 tonnes
Santander acted as the mandated lead provider. per annum of copper equivalent over a
arranger and as the collateral agent for the The plant will be the first thermal power projected 14-year lifetime. This will supply
deal. plant to consume natural gas from the a processing plant with an annual capacity
The MXN 7.05 billion ($293.8m at the pre-salt fields in Brazil and is expected to of 4.1 million tonnes of copper concentrate.
time of negotiation) deal was structured commence operations in 2022. The total First production is expected in the second
into two tranches: Banobras and Banorte cost of the project is estimated at $700 half of 2021.
participated in the first tranche (given in million. This deal was one of the largest
MXN for two thirds of the total cost), whilst BNDES agreed to provide R$2 billion greenfield mining project finance
Santander took part in the second (given ($490m) to the project over 24 years. The transactions since the beginning of the
in UDI for the remaining third). The tenor of financing is secured in several ways: the pandemic and reached financial close on
the new loan is 5 years, lasting until March fiduciary assignment of the project’s credit 1 February 2021. As part of the overall
2025. rights; equity support obligations granted by package, Appian Capital will acquire a
For Aleatica, the deal allowed the the borrower’s shareholders; mortgage of royalty over a portion of the project’s gold
company to reduce its financing costs real estate owned by the borrower; pledge by-product production.
whilst waiting for bond markets to improve. of the borrower’s shares; pledge of the Paulo Castellari, CEO of MVV said once
The refinancing allowed it to reach an early project’s equipment; and letters of credit the project reached financial close: “I am
payment with its existing creditors (BBVA issued by the bank guarantee providers pleased that we have been able to secure
Bancomer, Banobras, and Fonadin) and (Bradesco, Banco do Brasil, Votorantim and this financing for Serrote, which finalises
provided a cashout opportunity for Aleatica. SMBC). the overall funding package and will
The deal positively impacted both Urbana At the time of the agreement, Marlim Azul support completion of project development
Norte’s financing costs and Aleatica’s Energia CEO Bruno Chevalier said: “The and delivery of first production. It is an
asset portfolio, which includes over 300km contract with BNDES is an important step in important development which recognises
of roads in Mexico alone. It was also the development of a project that will make the continued progress and key milestones
received positively by the lenders, being a decisive contribution to the consolidation achieved to date and highlights the
one of Santander Mexico’s most profitable of the new gas market, making the market attractiveness of this high-quality copper-
structured finance operations. and prices more competitive. We are gold deposit.
making energy generation from Brazilian “The tremendous progress we have made
pre-salt gas a reality.” during the pandemic is also testament to
the hard work and determination of our
employees, and I look forward to bringing
Serrote into production on schedule and in
Autopista Urbana Norte advisers: Advisers to Marlim Azul Energia: line with budget.”
• Mijares, Angoitia, Cortes y Fuentes – • Machado Meyer Advogados – legal
legal Mineração Vale Verde advisers:
Advisers to the banks:
• ADS Financial Planning – financial • Fialho Salles – legal (local)
• Stocche Forbes – legal
• Mattos Filho, Veiga Filho, Marrey Jr e • Norton Rose – legal (foreign)
Banco Santander, Banobras and
Banorte advisers: Quiroga Advogados – legal • Endeavour Financial – financial
• Greenberg Traurig – legal Lender advisers:
Financial advisers:
• EY – financial • SMBC • Mattos Filho Advogados – legal (local)
• Idom – technical • Bradesco • White & Case – legal (foreign)

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IJGlobal Awards 2020 Latin America
2020

Latin American oil & gas Latin American power Latin American renewables
Cakua Offshore Gas transmission refinancing – INTI
Compression Station Alupar Transmission Line
INTI was selected as renewables financing
The Cakua Offshore Gas Compression The groundbreaking Alupar Transmission deal of the year in Latin America, a
Station is a strategic project for the Mexican Line was the first international project transaction that successfully closed in the
government and increasing oil production financing of a transmission line in midst of the pandemic. The 3 Peruvian
is a key objective for President Lopez Colombia, winning power transmission deal solar assets – Tacna, Panamericana, and
Obrador’s government. of the year. Moquegua – were originally financed by the
The project, located in the Ku-Maloob- The deal supported Transmisora Development Finance Corporation and were
Zaap oil field in Campeche, Mexico, is being Colombiana de Energía (TCE) – a subsidiary among the first solar projects awarded PPAs
delivered by Cakua – a special purpose of Alupar – in the development of a new in the country in the early 2010s, with a
vehicle majority-owned by subsidiaries of the 235km, 500kV transmission line which will generation capacity of 68MW. Each project
ACS Group (Dragados Offshore de México, expand the company’s generation capacity has a 20-year, dollar-denominated PPA with
Dragados Offshore, Cobra Instalaciones y by 30MW, bringing it to a total installed the Peruvian government for 100% of the
Servicios, Dragados Industrial and Avanzia capacity of 460MW. project’s electricity generation.
Instalaciones) with a 95% stake. The remaining Alupar reached a $163.5 million The $225 million refinancing was
5% share is owned by CKA1 Holdings, a mini-perm with 2 banks for the project. negotiated with BNP Paribas, SMBC, and
fully owned entity of Atlantica Yield. MUFG provided $138.5 million, whilst Societe Generale. The 3 assets were
Cakua reached an agreement with 110 the remaining $25 million came from refinanced simultaneously with the 3 banks,
banks – Bancomext, Bank of China, Banobras, Banco Sabadell. The tenor of the loan is having originally been financed through
Intesa Sanpaolo, ING, Mizuho, MUFG Bank, 7 years, and the total equity for the deal separate financing lines due to local legal
Nacional Financiera, Norinchukin Bank, and is $250 million. This transaction was the constraints. Structured on a club deal basis,
Societe Generale – for the $404 million 10- first international project financing of a the refinancing amounted to $225 million
year senior secured financing. The funds will Colombian transmission line, and it was across a 12- to 14-year fully amortising term
partially refund Cakua’s development costs, negotiated almost entirely virtually. loan and a 7-year DSRA LC.
refinance existing bridge loans, and fund the The new line, which includes 2 The refinancing improved considerably
remaining costs of the project. The total value connection terminals, will run between La on the initial terms reached with DFC. This
of the deal is $630 million, and the total equity Virginia and Nueva Esperanza, crossing the work resulted in a lower DSCR, extension of
is $146 million. departments of Risaralda, Cundinamarca, tenors, lower pricing and replacement of cash
The project involves the construction Tolima, Quindío and Valle del Cauca. When funded debt reserves with DSCR Letters of
of 4 turbo compressor units and 3 turbo complete, the project will provide electricity Credit. The 12-year tenor of the new financing
generators with a daily processing capacity to over 2 million households. also matches the remaining lifetime of the
of 450MMCF. The mechanical and process Alupar won the contract to build the PPAs signed with the Peruvian government.
design for the gas compression station project in November 2016 after a tender At the time of the deal, Solarpack said that
was designed to compress sour gas to be organised by the country’s Mines and the refinancing freed up $29 million, to be
reinjected to assist oil and gas extraction. Energy Planning Unit (UPME); the company reinvested into the company.
The Ku-Maloob-Zaap field currently produces bid $182.7 million and projected an opening The deal allowed the 2 companies to
around 750,000 barrels of oil per day and date of 30 September 2020. Alupar beat refinance the original debt to DFC entirely
represents around 50% of the country’s rival bids from Interconexión Eléctrica with private sector funding, taking advantage
crude oil production. The current Mexican and Empresa Energía de Bogotá, both of banks’ increased appetite for PPAs in the
government under President López Obrador Colombian companies. country. In this regard, the transaction is a
has pledged to increase oil production by The new transmission line is part of concrete example of the development of the
1.0MMbpd by 2024, after Pemex’s production Alupar’s widening portfolio in Colombia. The project finance market in Latin America since
halved between 2004 and 2019. company’s existing assets include Risaralda the project was first developed a decade ago.
The field itself is owned by PEP, which fully Energía – operator of the 19.9 MW Morro
contracted the project under an 11-year take- Azul hydro project, which was brought
or-pay Compression Services Agreement. online in September 2016. The La Virginia Advisers to Solarpack and Ardian:
Dragados Offshore México is responsible – Nueva Esperanza line is the company’s • Rodrigo Elias & Medrano Abogados –
for engineering, procurement, construction, first transmission asset in Colombia, legal (local)
installation, operations, and maintenance. complementing its existing transmission • Clifford Chance – legal (international)
assets in Brazil. • Astris Finance – financial
Advisers to Cakua: Advisers to the lenders:
• Garrigues – legal • Garrigues Peru – legal (local)
Advisers to the lenders: Advisers to Alupar: • Milbank – legal (international)
• Allen & Overy LLP – legal • Norton Rose Fulbright – legal Advisers to the collateral agents:
• Ritch Mueller – legal • Leite, Tosto e Barros – legal • Estudio Echecopar/Baker McKenzie –
Other advisers: • Brigard Urrutia – legal legal (local)
• Black & Veatch Management • Hinckley Allen – legal (international)
Consulting - independent engineer Advisers to the lenders:
Technical advisers:
• AON - insurance adviser • Holland & Knight – legal
• DNV GL
• PwC - model auditor • Milbank – legal
• Grupo Mercados Energeticos
• Netherland Sewell & Associates - • Structure Banca de Inversión –
Consultores
reserves report financial

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111
IJGlobal Awards 2020 Latin America
2020

Latin American social infrastructure


Infraestructura Educativa II

IDB Invest supported Uruguay’s education by the National Administration of Public a greater selection of technical and
sector by providing a loan to help upgrade Education (ANEP) and the Uruguayan polytechnic schools. Moreover, the
a schools package at a time when these Institute for Children and Adolescents construction of new sporting infrastructure
types of projects are experiencing credit (INAU) – for the design, construction, and will benefit adult communities in the vicinity
restrictions due to the pandemic.. maintenance of 42 public educational and of the new facilities. Many of the new
IDB Invest provided a $25 million loan to sports centres in Uruguay. This includes centres also incorporate the necessary
Infraestructura Educativa II, a consortium 23 schools, 9 technology centres, and infrastructure to generate their own hot
comprised of Berkes, Saceem, and Stiler, 10 sports centres, with construction to water through solar energy.
to support the design and construction of be completed within 36 months. The
new educational and sporting facilities in project will provide educational facilities
Uruguay. The company previously received and research services for a total of 4,500 Advisers to Infraestructura
loans from the CAF, both directly and children across 16 of the country’s 19 Educativa II:
through its CAF AM II Debt Fund. departments.
• Guyer & Regules – legal
The total cost of the deal, including the The concession is part of the country’s
participation of other co-financing banks, wider strategic plan to develop its
was $97 million. Both loans were provided educational infrastructure, which will Advisers to IDB Invest:
in indexed units and the first disbursement eventually involve 4 PPPs. The programme • Allen & Overy – legal
was made on 26 March 2021. aims to promote full-time education in • Ferrere Abogados – legal
In 2018, Infraestructura Educative II won unfavourable socio-economic contexts, • TA Europe – technical
a 22-year concession – jointly awarded improve school conditions, and provide

Latin American power refinancing


AES Panama refinancing
AES Panama used the proceeds of term each of the operating companies, allowing “This refinancing enabled us to create
loans and notes to fund back-to-back loans investors to participate in a structure that a more flexible capital structure in our
to various operating companies in Panama. provided them with a mix of technologies businesses that will support our continuous
These funds were then used to repay and and a natural hedge in their exposure by growth strategy on renewables and
refinance existing debt to free up financing combining renewables and LNG. LNG for the AES portfolio in Panama.
for new projects. The strength of the structure, together We worked together with the banks and
AES Panama was created for the purpose with the high quality of the assets within the counsels on this transaction for several
of refinancing the AES Corporation’s diverse portfolio, led to a rating of BBB- from Fitch months to ensure that the final product of
portfolio of power generation assets in and Baa3 from Moodys. the financing captured the needs of our
the country, which includes technologies The transaction allowed AES in Panama on-going operations while providing the
such as hydro, wind, solar, and LNG. The to simplify its capital structure, positioning necessary protection to investors”
portfolio stands under several separate itself to respond more efficiently to market Oscar Batres, AES Mexico Central
legal vehicles, each of which has a different demands and serving client needs more America & Caribbean Treasurer, said:
partner, creating challenges in refinancing. rapidly whilst reducing costs by almost “Our portfolio proved to be an attractive
The deal met these challenges by 200bps per year. The deal was a historic one alternative for investors, at it showed
refinancing $1.5 billion of existing debt and for Panama, as the largest bond issuance how resilient our operations are despite
capital expenditures through the creation made by a private entity in the country and the Covid effect. We were able to attract
of the Panamanian finance affiliate, which indeed the whole of Central America. more than US$5 billion from high quality
issued $1.38 billion of 10-year notes at Miguel Bolinaga, CEO of AES Panama, investors across the globe. In addition, the
4.375% and obtained both a $105 million said: “We feel very pleased with the results element of having the issuance registered
3-year loan and a $50 million revolving credit obtained with the refinancing; and for in the Panama Stock Exchange, enabled
facility. 5 banks took part in the refinancing: the benefits it presents to our company; us to capture local demand in the order of
Citigroup, JP Morgan and Scotiabank (as this billion dollar transaction reaffirms our around US$500 millon.”
global coordinators) plus Banco General and commitment to the country and highlights
Credit Suisse (as joint bookrunners). the important position of Panama in the
This creative refinancing created a world as a country for investments”
funding vehicle that acted as an issuer Jeff Mackay, CFO of AES Mexico Central Advisers to AES Panama:
of debt, passing downstream proceeds America & Caribbean, said: “This transaction • Alcogal – legal (local)
of the issuance to each of the operating used innovative structuring to aggregate • Clifford Chance – legal (international)
companies through intercompany loans. a number of very diverse AES operating
The loans provide limited guarantees businesses and to create a synthetic Advisers to the lenders:
as to the amount of debt allocated, portfolio that enabled us simplify our balance • Arifa – legal (local)
thus respecting the different ownership sheet across all our Panamanian subsidiaries • Shearman & Sterling – legal
structures. Nonetheless, AES pledged its and to capture financial efficiencies that (international)
equity interest in the form of dividends from were not otherwise available.”

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IJGlobal Awards 2020 Latin America
2020

Latin American power


Enfragen refinancing

The EnfraGen refinancing marked the arranged under 2 of EnfraGen’s subsidiaries


first energy transition portfolio in Latin (Prime Energia and Fontus Hydro). Advisers to EnfraGen:
America which used a bank and bond debt The cash flows for the portfolio are • Paul Hastings – legal
financing package. anchored by stable capacity payments • Claro & Cia – legal
EnfraGen – a developer, owner, and from regulators in Chile and Colombia and • Gomez-Pinzon Abogados – legal
operator of grid stability and value-added from PPAs with local utilities in Panama. • Sigma – legal
renewable energy infrastructure businesses In Colombia, the company expects to • Hogan Lovells – legal
across Latin America – secured a $1 billion earn energy revenues during times of low
debt package and issued a $710 million hydrology which peak during El Nino cycles. Advisers to the lenders:
bond offering to refinance existing debt and The refinancing of EnfraGen was a • Milbank – legal
fund near-term growth opportunities. landmark deal for the region because of • Garrigues – legal
The debt package was issued by 8 its size and complexity: the transaction • Philippi Prietocarrizosa Ferrero DU &
banks: BNP Paribas, Intesa Sanpaolo, financed a multi-jurisdictional pool of assets Uria – legal
Mizuho, MUFG, SMBC, Societe Generale, across varying classes, including limited • Arifa – legal
JP Morgan and Scotiabank. JP Morgan and construction risk. Moreover, the financing
Scotiabank served as global coordinators was one of the first ever 144A/RegS Other advisers:
and Mizuho acted as the administrative project bonds to be done in parallel to a • Black & Veatch – Independent
agent. bank financing, which required extensive engineer
EnfraGen is jointly controlled by coordination across multiple business lines. • PHC Servicios Integrados Group –
Glenfarne Group and Partners Group, with The financing is a transitional facility Colombian market consultant
operational and in-construction assets for EnfraGen, including traditional project • Mercados Energéticos – Panama
totalling over 1.4GW of installed capacity. financing terms whilst providing for capital market consultant
Its portfolio includes the Termoflores gas- in support of potential future acquisitions. • Systep Ingeniería y Diseños – Chile
fired power plant in Colombia, 784MW As such, it provides an ongoing opportunity market consultant
of diesel gensets in Chile, and 30MW of for increased portfolio diversification and • Mazars – model auditor
hydro assets in Panama. These assets are scale.

Latin American transport refinancing


Alto Magdalena (Project Alma)
The current credit environment provides programme – the largest infrastructure
unique opportunities for sponsors and initiative in Colombian history. Likewise, this
developers in Latin America to refinance project was the first of the 4G contracts to
their existing debt at much lower rates. reach the refinancing stage.
More 4G projects are expected to complete Luis Maria Clouet of Clifford Chance, who
construction resulting in sponsors seeking advised on the deal, said: “The refinancing
liquidity in preparation of upcoming 5G of Alto Magdalena […] will likely open
projects. the door to similar corporate M&A and
Project Alma consists of the construction, refinancing opportunities in Colombia. The
rehabilitation, improvement, and operation current credit environment provides unique
of the 190km Honda - Puerto Salgar - in July 2020, the company secured opportunities to sponsors and developers
Girardot corridor. The concessionaire is a refinancing with 5 banks: Ashmore Debt in Latin America to refinance their existing
consortium made up of Constructora MECO Fund – CAF, Banco de Bogotá, BlackRock, debt at much lower rates.”
(30%), MHC Ingenieria y Construccion de Financiera de Desarrollo Nacional, and
Obras Civiles (30%), Pavimentos Colombia SMBC (participating in association with
(30%), and Ingeniería de Vias (10%). MUFG). The deal was valued at $510 Advisers to Project Alma:
As part of the contract, the company million. • Milbank – legal (local)
improved 167km of existing toll roads and This refinancing consisted of a US$164.5 • Castro Leiva – legal (international)
constructed an additional 23km of new million senior dollar credit facility, a COP 1.2 • Structure Banca de Inversión –
highways. trillion senior Colombian peso facility, and financial
Initial construction was financed through a COP 115 billion subordinated Colombian • Arup – technical
a $314 million deal consisting of three peso facility.
tranches of debt (a COP tranche, a UVR This deal was an important first for the Advisers to the lenders:
indexed tranche and a USD tranche Colombian transport sector in several • Philippi Prietocarrizosa Ferrero DU &
provided by Grupo Aval banks and Cabei ways. In 2014, Concesión Alto Magdalena Uria – legal (local)
respectively). became the first concessionaire to win • Clifford Chance – legal (international)
After the project became operational a contract in Colombia’s 4G highway

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IJGlobal Awards 2020 Latin America
2020

Latin American water


Sabesp
The Companhia de Saneamento Básico do year tenor, will support Sabesp´s capital whilst simultaneously bolstering its
Estado de São Paulo (Sabesp) refinancing expenditures for the works and the operational efficiency.
deal contributes to 4 of the United Nations incorporation of solar distributed technology The new water restoration units will
Sustainable Development Goals; good in Sabesp’s existing treatment plants. The support ongoing efforts to depollute the
health and well-being, gender equality, second tranche, with a 10-year tenor, basin, which receives effluents for over 290
sustainable cities and communities and will refinance a portion of Sabesp’s debt industries and waste and wastewater for
climate action. denominated in foreign currency, and over 400,000 households. The treatment
Sabesp, the largest water and sanitation accordingly reduce its global exposure to plants will add a cumulative water treatment
company in Latin America, provides services forex. capacity of 1,560 litres per second,
throughout the state of São Paulo. It This structure of this transaction is highly contributing to a target of 85% of sewage
sought refinancing to build 5 water quality replicable, especially in the context of a treated by 2025.
restoration units in informal areas in the significant surge in water and sanitation
Pinheiros River basin and to install of up to PPPs being issued in Brazil – all of which Advisers to Sabesp:
73MW of distributed solar capacity in 33 will require long-term financing. Achieving
• Cescon Barrieu – legal
of its water treatment plants. This electricity this in local currency will allow Sabesp to
self-generation capacity is the first non- continue developing its capital investment • Davis Polk & Wardwell – legal
conventional renewable energy source built plan for the coming years whilst also
and operated by Sabesp and establishes a reducing its exchange rate exposure. Advisers to IDB Invest:
model which can be reused elsewhere. Moreover, the incorporation of distributed
IDB Invest provided local currency generation solar technology within Sabesp’s • Mattos Filho – legal
financing of R$950 million ($184m) in 2 existing plants is an innovative tool that • Clifford Chance – legal
tranches. The first tranche, with a 14- can reduce the company’s carbon footprint

IJGlobal awards
are now live 2020
In the absence of our famed IJGlobal awards
nights – normally hosted in London, New York,
Singapore and Dubai – we are bringing you all
the thrills and spills of the night… virtually.

Your hosts for the night will be IJGlobal editorial


director Angus Leslie Melville and editor Ila Patel.

To enjoy the full experience – including


acceptance speeches and the occasional
mis-pronunciation.

Click here to attend

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IJGlobal Awards 2020 Latin America
2020

Latin American renewables deal of the year, solar


Javiera/Sol del Desierto US private placement
The Javiera and Sol del Desierto solar
projects saw the refinancing of 2 solar
assets in Chile owned by Atlas Renewable
Energy, part of Actis’ Latin American
renewables portfolio. The 70MW Javiera
Solar project in Chañaral began operations
in 2015 and has a 20-year PPA with
Antofagasta Minerals, whilst the 230MW
Sol del Desierto solar park in Antofagasta
is expected to come online in January
2022, serving a 15-year PPA with Engie
Energía Chile. Having corporate offtakers,
as opposed to utilities, helped to shield the
projects from potential government action in
response to the widespread protests in the
country, which began in October 2019.
The refinancing consisted of a $253 its timing, occurring in the early stages Energy, at the time of closing, said: “We are
million, 17-year bond issued on the US of the Covid-19 pandemic. The unusual very proud of this unique financial solution,
private placement market. DNB served as circumstances also required careful tailor-made for these projects in order to
the sole placement agent. Three institutional monitoring of equipment suppliers in China enhance investment value.”
investors (Allianz, HSBC and Hancock) and collaborative discussions around force
purchased the bonds, which Fitch rated at majeure to assure bond purchasers that the
BBB-. brownfield project’s construction schedule Advisers:
This was the largest solar PV green US would remain on track. • Claro & Cia
private placement to date in Latin America The deal successfully won over a • Barros y Errazuriz Abogados
and one of the first US private placements sceptical investor community that was often • White & Case
to cross-collateralise a greenfield project wary of the country’s renewables industry, • Allen & Overy
and a brownfield project. The cross-border following previous negative experiences. • Willis Towers Watson
nature of this transaction came despite Carlos Barrera, CEO of Atlas Renewable

Latin American transport vehicles deal of the year


Project Condor

Project Condor consists of the purchase This deal symbolises a vote of confidence
and deployment of 433 electric buses in the Latin American e-mobility market, a
and associated charging infrastructure for new and growing sector which is well-aligned
Santiago’s integrated transport system. The with a renewed focus on sustainability from
deal was sponsored by a special purpose governments and investors alike. Santiago
vehicle, Enel X AMPCI L1 SpA (a joint established Latin America’s first electric bus
venture between AMP Capital and Enel X). corridor in 2019, the opening salvo in the
The company will lease the buses city’s campaign to electrify its entire public
through 3 10-year contracts (for 100, 183 transport network by 2040 – which will
and 150 buses) to Metbus, one of the eventually involve the replacement of the rest
operators of Santiago’s public transport of Santiago’s existing diesel fleet, made up of
system. The new buses were manufactured around 6,500 buses.
by the Chinese manufacturer BYD.
The purchase of the buses was financed
through a $129,500,000 Senior Term
Loan and a $4,150,000 LC Facility, both This $150 million deal was a significant Advisers to AMP Capital and Enel X:
matching the tenor of the lease contracts. investment in a green loan financing in • Claro & Cía – legal (local)
Funding was supplied by 3 banks: SMBC, Chile and it was a first for many of the • White & Case – legal (international)
BNP Paribas, and Societe Generale. companies involved: the deal was AMP’s
Revenues under the lease contracts first transaction in Chile, and SMBC’s first Advisers to the lenders:
are fixed, dollar-denominated monthly green loan in Latin America. It paves the • Carey – legal (local)
payments, and are isolated from both way for future deals in other countries in the • Allen & Overy – legal (international)
operational and traffic risk. region, such as Colombia and Brazil.

www.ijglobal.com Summer 2021


116
IJGlobal Awards 2020 Asia Pacific winning deals

2020
Asia Pacific
winners
Winners in the Asia Pacific transaction category are:

• Editor’s Choice Asia Pacific – Clifford • Asia Pacific geotherma – Gunung • Asia Pacific power transmission –
Capital’s corporate restructuring Salak-Darajat Geothermal Plant North Phnom Penh-Kampong Cham
and ADB’s investment Portfolio Refinancing Transmission Line
• Asia Pacific offshore wind – Akita Port • Asia Pacific social infrastructure primary
• Asia Pacific project finance & export and Noshiro Port Offshore Wind financing – South Australian Health
finance – Changfang, Xidao Offshore Farms and Medical Research Institute
Wind Farms Second Building
• Asia Pacific onshore wind primary
• Asia Pacific regional refinancing & financing – Murra Warra Wind Farm • Asia Pacific social infrastructure
oil & gas refinancing – Ichthys LNG Phase 2 refinancing – ACT Law Courts PPP
Refinancing Refinancing 2020
• Asia Pacific onshore wind refinancing –
• Asia Pacific DFI – Mazar-e-Sharif Gas- Sidrap Wind Farm • Asia Pacific data centre – Acquisition
Fired Power Plant IPP Phase 1
• Asia Pacific solar in a frontier market – of 88% in AirTrunk
• Asia Pacific LNG primary financing –
Navoi Region Solar PV Plant IPP • Asia Pacific telecoms – Acquisition of
Hong Kong LNG Offshore Terminal
• Asia Pacific midstream Oil & Gas – • Asia Pacific renewables portfolio Jio Platforms
Acquisition of Daesung Industrial financing – SB Energy Rajasthan • Asia Pacific transport primary financing
Gases Solar PV Portfolio IPP – Almaty Ring Road PPP
• Asia Pacific upstream oil & gas – • Asia Pacific solar refinancing – Leader
• Asia Pacific transport refinancing –
Acquisition of Chevron’s 45% in Energy Kuala Muda Solar PV
WestConnex Toll Road Refinancing
Malampaya Gas Field Portfolio Refinancing
• Asia Pacific coal-fired power – Java 9 • Asia Pacific wate – Binh Duong Water
• Asia Pacific energy storage – Wandoan
and Java 10 Coal-Fired Power Plants Treatment Expansion
BESS
• Asia Pacific floating solar – Changhua • Asia Pacific cogeneration power – • Asia Pacific mining – Okvau Gold
Lundong Floating Solar PV Plant Rayong Cogeneration Power Plant Mine

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IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific Editor’s Choice


Clifford Capital’s corporate
restructuring and ADB’s investment
Clifford Capital, which has been operating forward to leveraging its public and private business lines. “The ADB transaction was
since 2012, restructured its entities under a sector resources and to building back smarter complex because we had to conduct
holding company (CCH). The Singapore-based with CCH, its shareholders, and the broader significant industry due diligence across
specialist financing and distribution platform infrastructure market.” nearly the entire debt value chain from project
also recruited Asian Development Bank (ADB) ADB’s financing package comprised finance loans to private and mezzanine credit
and Japan International Cooperation Agency’s $50 million investment from the Manila- to derivatives,” adds Jacqueline.
(JICA) Leading Asia’s Private Infrastructure headquartered multilateral and $45 million “The due diligence helped us appreciate
Fund (LEAP) to invest $95 million of equity by LEAP. ADB’s investment in CCH is its first the scale of the market across multiple
into CCH. ADB manages LEAP. investment in a Singapore entity since the geographies and the increasing need for
“It was a herculean effort, achieved at the opening of ADB’s new office in Singapore in new financing innovations,” notes Christine.
peak of the pandemic when the market was March 2020. The office now has 11 staff. “These innovations include Pierfront Capital’s
volatile and investor sentiment was weak,” “We are delighted that JICA, through its mezzanine financing and structured
says Christine Chan, ADB’s co-leader of investment from LEAP, was able to co-invest solutions in the infrastructure market, and
the project team and now senior adviser to alongside ADB as part of this landmark Bayfront Infrastructure Management’s
vice-president for private sector operations partnership,” says Christine. securitization of project finance assets—a
and PPPs. ADB has a longstanding relationship ground-breaking way to originate, structure,
“ADB’s equity investment in CCH will with CCPL in in Asia’s infrastructure finance and distribute the securitization to different
have a ripple effect across the sustainable market. The multilateral first cofinanced with financial investors.”
infrastructure finance market. ADB’s equity CCPL in 2015. It also shares Temasek’s “Moreover, the project team working with
will expand CCH’s capital base to fuel its next vision and work to mainstream sustainability ‘OneADB’ teamwork adopted a cross-cutting
stage of growth and unleash new innovations throughout its investments. The Singaporean approach encompassing governance,
across the infrastructure financing continuum.” sovereign wealth fund is CCH’s largest development effectiveness, safeguards,
shareholder. and gender to conduct due diligence and
CCH is the umbrella company for: “ADB has high regard for CCPL’s senior structure this landmark equity investment,”
• Bayfront Infrastructure Management management and board of directors,” she says.
– project finance collateralised loan emphasises Christine. “When ADB was “Another challenge was working
securitisation first approached in the fall of 2019, we through the impact of ADB’s governance
• Clifford Capital (CCPL) – debt for recognized the tremendous synergy requirements on the governance structures
infrastructure, offshore marine and shipping between ADB’s and CCH’s infrastructure of CCH and its subsidiaries,” says
• Pierfront Capital – mezzanine and private financing platforms. We also clearly saw the Jacqueline. “ADB brings with it as investor
credit opportunities to further leverage the capital, its breadth of international governance and
• possible supply chain financing (SCF) innovation, knowledge, and partnerships ESG policies and reporting accountability,
entity that CCH is evaluating from Singapore’s infrastructure ecosystem to which further cements and buttresses
address Asia’s infrastructure gap.” CCH’s position as a world-class provider of
“The rationale for the restructuring was to Clive adds: “We are very focused on how infrastructure finance in all aspects.”
bring our complimentary platforms under our existing businesses need to evolve to Christine stresses the important work
a holding company and help us to move reflect where new market opportunities lie. of the private sector to close Asia’s
us to our next phase of growth. Bringing in Part of that evolution is adapting to the way infrastructure financing gap, which has
ADB as a shareholder is an important part the world is changing around sustainability, widened due to the pandemic. “The
of this story,” says Clive Kerner, group chief which is a very important theme for us private sector is needed more than ever as
executive of CCH. “We’re delighted that ADB across all our platforms. ADB’s expertise on governments are diverting already strained
is a shareholder. Our remits are aligned in a ESG was a big attraction.” fiscal resources to finance recovery.”
number of areas.” “The strategic investment by ADB is a “We are thinking very carefully about how
Christine adds: “There is tremendous sign of ADB’s confidence in CCH’s future our platforms can move towards delivering
scope and potential to further expand these growth plans, including in sustainable more sustainable products. We are also
businesses and leverage these new asset infrastructure financing in developing Asia mapping out our portfolio of assets and
classes to mobilize institutional capital and is expected to boost the consolidation thinking how we can transition over time,”
towards sustainable infrastructure in Asia. of Singapore’s position as the leading notes Clive.
“It will also open up new co-financing and infrastructure financing hub in Asia,” says “Through a sustainability lens, we are
co-investment opportunities for the market, Milbank partner and ADB legal adviser seeing opportunities. Renewables hold the
which is especially valuable given that investor Jacqueline Chan. most immediate opportunities,” CCH’s chief
confidence and market sentiment have been “This complex strategic investment was executive says. “More broadly, the definition
shaken by the Covid-19 pandemic. As we a huge undertaking,” says Christine. Teams of infrastructure itself is expanding and we’ll
support the region’s recovery, ADB looks conducted due diligence across CCH’s focus on where we can make a difference.”

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118
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific project finance & Asia Pacific regional refinancing Asia Pacific DFI – Mazar-e-Sharif
export finance – Changfang, & oil & gas refinancing – Ichthys Gas-Fired Power Plant IPP
Xidao Offshore Wind Farms LNG Refinancing Phase 1
The 552MW Changfang and 48MW Xidao The Ichthys LNG Refinancing 2020 is the The 59MW Mazar-e-Sharif gas-fired power
offshore wind farms in the Taiwan Strait, Asia Pacific Regional Refinancing and Best plant IPP phase 1 is the Asia Pacific DFI
better known as the CFXD project, are the Oil & Gas Refinancing deals of the year. deal of the year.
Asia Pacific Regional Project Finance and This is the first year IJGlobal has Much of Afghanistan’s infrastructure has
Best Export Finance deals of the year. recognised APAC regional winners. Ichthys been destroyed due to nearly 3 decades of
This is the first year IJGlobal has recognised was chosen from among the top refinancing conflict. The country has significant need for
2 APAC regional winners. The other is a large transactions that closed in 2020 around the power and private sector investment. Two-
refinancing. CFXD was chosen from among region. thirds of Afghanistan’s 37 million people
the top project finance transactions that In June 2020, lead sponsors Inpex do not have access to grid-connected
closed in 2020 around the region. Corporation and Total refinanced the issuer’s electricity. Of the remaining third, more
Sponsors, led by Copenhagen existing uncovered commercial loan and than 75% of the power is imported. Even
Infrastructure Partners (87.5%) with Taiwan KEXIM direct loan with a new uncovered those connected to the grid have frequent
Life and TransGlobe Life, reached financial commercial facility at lower margin. The blackouts, at times lasting some 15 hours
close in February 2020 through a near $11.9 billion transaction also involved the a day.
NT$120 billion ($3.94 billion) financing re-pricing of its existing ECA covered loans Against this backdrop, the financing of
package. The participation of local Taiwan life from 6 ECAs, EFA direct loan and senior Mazar independent power producer (IPP)
insurers as equity investors and involvement sponsor debt at lower margins. – Afghanistan’s first long-term IPP – was
of a Japanese export credit agency were “The innovative and first of its kind a consequential achievement. The $90
innovative features of the transaction. refinancing and re-pricing plan revolved around million Mazar-e-Sharif power plant will
“This transaction is a significant milestone a strategy to most efficiently reduce the generate 400GWh of electricity annually for
as it is the first of its kind to enable local project’s cost of debt, combined with a revised the residents of Mazar-e-Sharif, Kabul and
life insurance companies to make a direct repayment profile that was both robust and Jalalabad, boosting the country’s electricity
investment in a Taiwanese offshore wind value accretive to the project and sponsors generation by up to 30%.
farm,” CIP partner Michael Hannibal said at which ultimately needed to be successfully At closing, Afghan banking, construction,
the equity closing. executed at a time of unparalleled market energy and transport conglomerate
MUFG Bank had the joint mandate on volatility,” said a deal insider. Ghazanfar Group and Egyptian construction
CFXD’s roughly NT$90 billion, three-currency Liquidity from a global blend of commercial company Hassan Allam Holdings owned
debt package, comprising 23 lenders banks was surprisingly strong, given the Afghan Power Plant Company, the project’s
including Taiwan Life and TransGlobe Life. timing amid the Covid-19 pandemic and special purpose vehicle.
CFXD’s uncovered, commercial tranche a crisis where Brent was below breakeven, The transaction was also Afghanistan’s
pricing was 240bp above 3-month Taibor, with uncovered debt’s pricing significantly first private sector gas-fired power plant
stepping down to “just slightly above” reduced. Financial advisers Citi and Mizuho to be funded by development finance
200bp at commercial operations date, delivered the massive refinancing spot on institutions (DFIs). “The project will have a
according to a market commentator. the sponsors’ deadline. significant demonstration effect for private
Lenders on CFXD had a sweet-and-sour mix This transaction highlights the resilience sector participation in Afghanistan’s energy
of 55/45. The following 7 Asian and European of the sector and the bankability of sector,” said a deal insider.
institutions provided about NT$49.5 billion in Australian LNG assets. With a total of 28 IFC was MLA on the nearly $65 million
coverage (in order of exposure): Atradius, EKF, lenders and 7 Asia Pacific and European debt package. The World Bank Group
NEXI, K-Sure, GIEK, KfW and UKEF. ECAs on the transaction it is also a member provided an A loan and mobilised
“The real story of the transaction is testament to the bank’s capabilities in funding from Asian Development Bank, Japan
this is NEXI’s first time participating [in large and complex infrastructure financing International Cooperation Agency’s Leading
the Taiwan offshore wind],” said another transactions and ongoing support even in Asia’s Private Infrastructure Fund and DEG.
market commentator. “They came in at a challenging market conditions. IDA also provided a guarantee to support
very meaningful level, given the Japanese CPC, Osaka Gas, Toho Gas, Tokyo Gas, short-term liquidity for ongoing payment
content from the turbine supply agreement.” JERA, and Kansai Electric are also Ichthys obligations to power utility DABS, which is
The Japanese ECA covered NT$10.2 billion LNG’s shareholders. the offer. MIGA also provided investment
(¥37 billion) financing by 10 lenders. guarantees.
Participants: Allen & Overy, Allens, ANZ, IDA Private Sector Window’s (PSW) Risk
Participants: ABN Amro, Baker McKenzie, Atradius, Bank of Communication, Bank Mitigation Facility and MIGA Guarantee
Bech-Bruun, Crédit Agricole, CTBC, DBS, Serve, Bayern LB, Bayfront Capital Partners, Facility covered IFC’s financing and MIGA’s
Deutsche, E Sun, En Tie Commercial, FIH BNP Paribas, Bpifrance, Caixa, CBA, Chiba, political risk guarantees. Mazar was World
Partners, HSBC, JP Morgan, KfW IPEX-Bank, Citigroup, Crédit Agricole, DZ, Euler Bank’s first time to deploy PSW’s Risk
KGI, Korea Development Bank, Kromann Hermes, Export Finance & Insurance Corp Mitigation Facility.
Reumert, Lautec, Lee & Li, Linklaters, Australia, Export Finance Australia, Gas World Bank is also helping to build a
Marsh, Mizuho, Mott MacDonald, MUFG, Strategies, Herbert Smith Freehills, HSBC, natural-gas pipeline from Sheberghan to
Natixis, OCBC, PEAK Wind, Ramboll, ICBC, ING, KEXIM, KfW IPEX-Bank, K-Sure, Mazar-e-Sharif to supply gas to the plant.
Santander, Sinotech Engineering, SMBC, Latham & Watkins, Lummus Consultants
Société Générale, Standard Chartered, International, Mizuho, MUFG, NAB, Participants: Aon, EY, Fichtner, Hagler
Taipei, Fubon, Tsar & Tsai, Watson Farley & NautaDutilh, NEXI, Resona, Santander, Bailley, Hogan Lovells, Kakar, Marsh, OWL
Williams, White & Case, Wood Group SMBC, SMTB, Société Générale, Westpac Group, RIAA Barker Gillette, White & Case

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IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific LNG primary Asia Pacific midstream oil & Asia Pacific upstream oil & gas
financing – Hong Kong LNG gas – Acquisition of Daesung Acquisition of Chevron’s 45% in
Offshore Terminal Industrial Gases Malampaya Gas Field
The Hong Kong LNG offshore terminal is The acquisition of Daesung Industrial Gases Filipino conglomerate Udenna’s acquisition
the Asia Pacific Best LNG Primary Financing is the Asia Pacific Best Midstream Oil & Gas of US-based Chevron’s 45% stake in
deal of the year. deal of the year. Malampaya gas field is the Asia Pacific Best
The financing of Hong Kong’s first Divine Industrial Gas through Divine Korea Upstream Oil & Gas deal of the year.
offshore LNG import terminal project was a Holdings – a Macquarie Asia Infrastructure The transaction is significant for the
critical step to support the government of Fund 2-led consortium with a Singaporean Philippines’ oil and gas industry, as Filipino
Hong Kong’s carbon reduction targets in the sovereign wealth fund and Canadian companies eye replacing large global
HK Climate Action Plan 2030+. pension fund – acquired 100% equity incumbents. Malampaya is the country’s
The project involves an offshore LNG interest in Daesung Industrial Gases from largest and only commercially producing
receiving terminal, jetty topsides facilities, Korean private equity firm MBK Partners for gas field, where it supplies up to 20% of the
2 new subsea pipelines connecting the W2.8 trillion ($2.48 billion). country’s total power generation.
FSRU with 2 power stations, and gas At closing, Daesung was South Korea’s Shell Philippines Exploration, which
receiving facilities to transport gas to power largest industrial gas supplier and only holds the Service Contract 38, develops
generating facilities in Hong Kong. nationwide supplier of industrial gases, with and operates the gas field under the JV
At closing, Castle Peak Power (Capco) annual production capacity of more than 16 comprising Netherlands-headquartered
and HK Electric were the 50/50 owners million tons. Royal Dutch Shell (45%), Chevron (45%),
of project company Hong Kong LNG For more than a year, MIRA reviewed and state-owned Philippines National Oil
Terminal. Indirect owners were CLP Holdings opportunities in the gas industry and Exploration (10%).
subsidiary CLP Power Hong Kong and gathered sector knowledge in the industrial In 2019, Udenna revealed that it was in
China Southern Power Grid subsidiary China gas market. Four companies that together talks with Chevron to acquire the significant
Southern Power Grid International (HK) hold more than 90% of the market dominate minority interest. Both sides later sealed the
through Capco. Korea’s industrial gas business. High entry deal for around $565 million, paid through a
HSBC had the joint mandate on the barriers feature prominently in the industry. $400 million debt facility with ANZ and ING.
HK$6 billion ($773 million) financing MIRA exclusively sourced the opportunity Despite facing concerns that the gas
solution, joined by ANZ, BNP Paribas, China from MBK Partners due to the real assets field would plummet to a third by 2024 and
Development Bank, Credit Agricole and investment manager’s prior investments in deplete by 2027 to 2029, the consortium
Standard Chartered as MLAs. Korea. The Macquarie subsidiary drew from was confident that the gas field could
A commendable aspect of the package a team of industry and functional specialists sustain beyond 2024. The acquisition
was the 15-year HK$1.96 billion credit in Korea, China and Singapore to complete allowed Udenna to become a prominent
buyer term loan facility, covered at 95% by due diligence and documentation process oil and gas player in the market, which
Sinosure in favour of Capco. It supported within a short period of time. aligns with the company’s long-term vision
the EPC contract from Offshore Oil “MIRA considered Daesung in particular to develop a sustainable clean energy
Engineering China, the supplier of a gas as a prime investment opportunity given business in Philippines.
subsea transportation pipeline to, and a its market leader position … with 40 years Besides, the transaction also signalled
gas receiving station at, Capco’s Black Point of operation that enabled it to establish Chevron’s exit on its first and largest natural
power station in Hong Kong. longstanding relationships with Korea’s gas development project in Philippines.
This was Sinosure’s first long-term buyer leading blue-chip customers and record a Malampaya has an estimated total
credit transaction for a Hong Kong-based near-complete renewal rate since 1990s,” a investment cost of about $4.5 billion and
borrower. The Chinese ECA also deviated deal insider said. has contributed as much as $12 billion in
from its policy requiring a corporate The industrial gas supplier’s cash revenue.
guarantee due to the borrower’s strong flows bolstered by long-term volume Since Malampaya began operation in
financials and the project’s strategic role. guarantee contracts and cost pass through 2002, its production reached up to 429
Other features of the transaction included mechanisms, further attracted MIRA. million cubic feet of gas per day and 15,000
$350 million senior 10-year Energy MIRA also recruited GIC and Alberta barrels of condensate per day over the two
Transaction bond and HK$3.3 billion Energy Investment Management to join the decades.
Transition 1- and 3-year revolving facilities. multinational consortium. “At Udenna, we believe in the benefit of
“The deal was the first ECA-covered MIRA conducted a comprehensive post- promoting natural gas as an essential fuel to
deal with Capco and Asia’s first export merger integration process to transition support the country’s growing energy needs
finance Energy Transition loan,” said a deal smoothly and maintain momentum and economic growth,” said the Filipino
insider. “The energy transition facilities were during the Covid-19 pandemic since the conglomerate.
aligned with CLP’s Climate Action Finance transaction closed in February 2020. The
Framework.” on-the-ground asset management team in
Korea was extremely valuable.

Participants: Allen & Overy, Cleary


Gottlieb Steen & Hamilton, Kim & Chang,
KSFC, Lazard, Lee & Ko, Mirae Asset Participant: ANZ, Ashurst, Freshfields
Daewoo, Morgan Stanley, NH I&S, Shin & Bruckhaus Deringer, Herbert Smith
Participants: DNV GL, ERM, Worley Kim, Shinhan Bank Freehills, ING, Morgan Stanley

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IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific energy storage Asia Pacific floating solar Asia Pacific geothermal – Gunung
Wandoan BESS Changhua Lundong Floating Salak-Darajat Geothermal Plant
Solar PV Plant Portfolio Refinancing
The primary financing of the 100MW /
150MWh Wandoan battery energy storage The 180MW Changhua Lundong floating The 2020 refinancing of the 550MW
system is the Asia Pacific Best Energy solar PV plant is the Asia Pacific Best Gunung Salak-Darajat geothermal plant
Storage deal of the year. Floating Solar deal of the year. portfolio is the Asia Pacific Best Geothermal
Vena Energy’s BESS in the Darling Downs Floating solar is an increasingly attractive deal of the year.
region of Queensland was Australia’s first option for large-scale PV deployment The portfolio refinancing – $1.1 billion
utility scale battery project to be privately at reservoirs and alongside hydropower senior green bonds issued by Indonesia-
financed without the need for state or facilities, especially where land use is based Barito Pacific subsidiary Star Energy
federal government assistance. constrained. Geothermal – was 3.5x oversubscribed. It
“This landmark transaction also marks “With the financing group comprising was Indonesia’s first US dollar project bond
Australia’s first ever non-recourse project 3 international banks and 4 local banks, and one of its largest non-sovereign deals.
financing of a utility scale battery energy the financing structure of this pioneering It was also Indonesia’s longest dated green
storage project,” said a deal insider. project opens more possibilities to bolster bond at 18 years.
BNP Paribas, DBS and ING were MLAs on the burgeoning large-scale floating solar “It was Asia’s first dollar-denominated
the debt financing of the A$120 million ($82 projects in Asia Pacific during the coming project bond of the year in 2020,” said a
million) project, which is also instrumental in years,” said a deal insider. deal participant.
Queensland’s transition towards renewable At closing, Marubeni acquired the project SEG Darajat II and SEG Salak co-issued
energy and a low carbon economy. in Changbin Lunwei East’s Changhua the green bonds to refinance the $1.25
“The financing was also among the first Coastal Industrial Park from Chenya Energy, billion loan acquisition of 350MW Gunung
of Vena Energy’s renewable energy portfolio held by I Squared Capital’s renewable Salak and 200MW Darajat, following the
in the Australian market, and the first battery energy platform Asia Cube Energy. acquisition in 2017 of the geothermal
project internationally, to meet the criteria for The transaction, which has a 20-year assets Star Energy, Philippines-based Ayala,
Vena Energy’s Green Financing Framework,” power purchase agreement and feed-in- and Thailand-based EGCO, from energy
said a project adviser. tariff with Taipower, was one of the largest giant Chevron.
Pierre Floriat from BNP Paribas noted: “As floating solar projects in the world. It was The issuance was the first investment-
green loan coordinator for the financing, BNP also the first project financing in Taiwan’s grade green project bond from the private
Paribas strongly believe the Wandoan South floating solar industry. sector in Indonesia.
BESS provides a template for more battery Singapore-headquartered DBS had the The co-issuer, multi-jurisdictional, dual-
projects to be commercially financed and joint mandate on the NT$9 billion ($322 tranche structure was among the first
will enable further renewable penetration into million) financing. Debt comprised a single of its kind in the region. The transaction
Australia’s National Energy Market.” senior facility of about NT$7.2 billion. The included 2 tranches – $320 million with a
At closing, the 150MWh Wandoan BESS MLAs were DBS, KGI, SinoPac, SMBC and 3.25% coupon rate due 2029 and $790
was the largest battery in Queensland Société Générale, while lead arrangers million with a 4.85% coupon rate due 2038.
and second largest in Australia capable of were E Sun and First Commercial. Banks The transaction set a precedent for other
powering up to 57,000 households. It will structured a 6-year mini-perm with a issuers in the region to arrange the complex
provide ancillary services and help maintain notional maturity of 18 years. structure.
grid stability as growing shares of variable Changhua Lundong was the first Star Energy is one of the Indonesia’s
renewable energy join the local grid. “standard international style” non-recourse largest geothermal producers that operates
The battery was the first part of Vena loan for a large-scale floating solar power and owns 875MW of assets. It issued the
Energy’s Wandoan South Project in plant in Taiwan. It will also be the world’s bonds in structure with upstream, cross-
Queensland and represented the first large- largest built in an inter-tidal zone. stream and downstream guarantees and
scale battery project globally by the Singapore- This landmark transaction supported had a security package with assets in
headquartered renewable developer. the Taiwanese government’s directive in several jurisdictions. The deal signified
Australian utility AGL Energy procured achieving 20% renewables in the country’s the private sector’s increased interests in
the dispatch rights for the battery under a energy mix by 2025. renewable projects and enhanced focus in
15-year contract. The procurement allows “Through Changhua Solar, Marubeni the ESG sector.
AGL to leverage excess solar generation in plans to expand the floating solar power “This successful green bond offering
Queensland and provide capacity when other business in Taiwan as well as in other indicates that investors in the region and
renewable power sources are not generating. regions,” said a project participant. across the world are eager to invest in
The BESS is near the town of Wandoan “This project’s success would certainly geothermal and renewable energy projects
about 400km north-west of Brisbane. The help spur more of such projects in land- amid challenging economic circumstances,”
battery will connect to Powerlink’s Wandoan constrained Taiwan and other jurisdictions said a deal adviser.
South substation, just south of the project in Asia facing the dilemma of accelerating
site. Vena Energy is a Global Infrastructure renewable energy adoption and competing
Partners portfolio company. land uses,” added another participant.
Participants: Bank of the Philippine
Participants: Ashurst, ClayMatter, DLA Participants: Aon, KPMG, Lee & Li, Mott Islands, Barclays, Clifford Chance, Credit
Piper, Doosan GridTech, Herbert Smith MacDonald, Russin & Vecchi, Sinotech Suisse, DBS, Deutsche, King & Spalding,
Freehills, RINA Consulting Engineering Mayer Brown, Milbank, Walkers

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121
IJGlobal Awards 2020 Asia Pacific

Asia Pacific offshore wind


Akita Port and Noshiro Port Offshore Wind Farms
The 145MW Akita Port and Noshiro Port Mizuho, MUFG and SMBC were the Also notable was that it was a syndication
offshore wind farm portfolio is the Asia MLAs, joined by other domestic and foreign of both domestic and international banks
Pacific Best Offshore Wind deal of the year. lenders, including senior lender Société which are not commonly done in Japan.”
The ¥100 billion ($921 million) Générale. Marubeni’s funding plan had The transaction accelerated Marubeni’s
transaction financed Japan’s first large-scale variable and fixed rate facilities. Bankers and decision to transform its power portfolio,
commercial offshore wind project. This was advisers encountered many firsts, including aiming to expand the ratio of power
one of Japan’s most consequential deals project risk allocation, permitting, financing generated by renewable energy
in recent years as the first large offshore structure and supply chains. sources from 10% to 20% by 2023. The
wind power project by project financing. It “The financing proved successful for development of Japan’s offshore wind
foreshadows major growth in offshore wind the sponsors, thanks among others to the market is crucial for Marubeni to achieve its
financing as the government targets 30- quality of the project’s risk profile and its power transformation.
45GW by 2040. highly visibility on the Japanese market,”
At closing, Marubeni was Akita Offshore said a deal insider. “The debt raising was
Wind Corporation’s largest shareholder, consequently over-subscribed.” Participants: Tohoku Sustainable
joined by 12 other Japanese companies, An interesting facet was that Japanese & Renewable Energy, Cosmo Eco
including Obayashi and Chubu Electric law did not clearly define ownership Power, Kansai Electric Power, Akita
Power. over the ocean. “Structuring the security Bank, Ohmori, Sawakigumi, Kyowa
This project was the first of a series of packages over offshore wind turbines, Oil, Katokensetsu, Kanpu, Sankyo,
what the market in Japan is calling “ports therefore, proved quite challenging,” a Linklatersm, Mori Hamada & Matsumoto,
and harbour” offshore wind projects, project participant said. Mott MacDonald, Nishimura & Asahi,
supported by the Japanese feed-in tariff for “This was the first time this type of Tokyo Kyodo, Willis Towers Watson
renewable energy projects. security has been undertaken in Japan.

Light with the wind of the world


Marubeni believes that “offshore wind farm” is one of the answers to
create a decarbonized and sustainable society. Together with local
stakeholders, we will draw the ideal form of offshore wind farm and a
bright future while keeping in mind the contribution to the local economy
and the environment. We look forward to delivering projects such as the
landmark Akita Noshiro Offshore Wind Project shown here to achieve a
more sustainable future for the region and the World.

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122
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific onshore wind primary Asia Pacific onshore wind Asia Pacific solar in a frontier
financing – Murra Warra Wind refinancing – Sidrap Wind Farm market – Navoi Region Solar PV
Farm Phase 2 Plant IPP
The 2020 refinancing of the 75MW Sidrap
The 209MW phase 2 of the Murra Warra wind farm is the Asia Pacific Best Onshore The financing of the 100MW Nur Navoi solar
wind farm is the Asia Pacific Best Onshore Wind Refinancing deal of the year. power project is the Asia Pacific Best Solar
Wind Primary Financing deal of the year. The transaction was a refinancing of a in a Frontier Market deal of the year.
Near closing, Partners Group acquired greenfield loan for Indonesia’s first wind “The first IPP - and PPP - in Uzbekistan
100% equity interest in Murra Warra 2 in power project. The project itself was the with a massively ambitious modernisation
western Victoria from Macquarie’s Green country’s first utility-scale wind power programme across the power and
Investment Group and RES for A$180 project, signifying the transition towards infrastructure space,” said a deal insider.
million ($128.5 million). In 2018, the Swiss renewable energy. The $150 million wind At closing, the Masdar owned project
fund manager also bought 100% equity farm, which went online in 2018, was a company Nur Navoi Solar Foreign
of the adjacent operational 226MW Murra pioneering model for future wind power Enterprise. The Abu Dhabi-based sponsor
Warra 1 for A$200 million. The Murra Warra projects in the country. reached commercial close with the lowest
complex is one of the largest wind farms in A consortium, comprising APAC-focused tariff for solar energy in Central Asia to
the Southern Hemisphere. UPC Renewables, Indonesia-based Binatek date. Nur Navoi was also Uzbekistan’s
Murra Warra 2’s primary financing closed Energi Terbarukan, and Philippines-based first competitively tendered project in the
last July amid the coronavirus pandemic AC Energy, is the onshore wind farm’s renewable energy sector.
showcasing the resilience of the Australian owner and operator. The transaction was the first solar project
renewables market. The pandemic The consortium had a 30-year power under the IFC Scaling Solar programme
presented a series of challenges, across purchase agreement with state-owned utility outside Africa. “It was the fastest ever bid
supply chain, access to site and rising company Perusahaan Listrik Negara (PLN). to close cycle even during the Covid-19
capital costs. The former owners were able The US dollar linked PPA had a levelised pandemic, closing in 12-13 months,
to navigate the project through these issues tariff of $0.1141/kWh, providing a hedge to compared with 1.5-2 years in other Scaling
and close the parallel equity and debt the sponsors against potential volatility in Solar deals,” a source noted.
transactions. Indonesia rupiah. Cranmore Partners was financial adviser
Six commercial banks lent on the project The $114 million refinancing to the on the financing package. IFC, Canada-IFC
finance debt. The debt package involved a existing loan, extended by US International Blended Climate Finance Program, ADB and
green loan making it the first time such a Development Finance Corporation’s Canadian Climate Fund for the Private Sector
facility was used to fund the construction predecessor, represented a landmark in Asia II provided long-term senior debt.
of a wind farm in Australia. The green loan, transaction and milestone of Indonesia’s EBRD extended an equity bridge loan.
raised in accordance with the Asia Pacific transition to renewables. The loan facility Masdar’s use of an equity bridge loan was
Loan Market Association’s Green Loan attracted a diverse lender club consisting of not surprising. Investment-grade sponsors in
Principles, was subject to an independent German DFI DEG, SMBC’s BTPN, Indonesia the Middle East tend to lever up their equity
second party opinion from Sustainalytics. Infrastructure Finance, and Sarana Multi contributions, noted a banker.
The financing’s timing was not ideal. Grid Infrastructure. The IBRD guarantee was equivalent to
connectivity issues forced a few investors The MLAs were able to close the the PPA payments by National Electric Grid
to divest local assets. The former sponsors refinancing in 3 months, when the of Uzbekistan, the off-taker, under the 25-
mitigated market uncertainty by conducting transaction closed on the same day as year PPA during the 6-month peak (April to
grid due diligence and sweetening signing. That is a relatively short timeframe October). The 20-year payment guarantee
the financing package with security in the market. The lenders performed their backstopped a letter of credit by Natixis in
mechanisms. These included a cost overrun strong track record and their readiness to case the government or the off-taker does
facility to provide liquidity in the event of support the country’s renewable goals. not reimbursed a draw on the L/C within 12
unforeseen grid related issues. “This project is particularly significant months.
“We continue to believe the Australian because it’s one of the ways that PLN is “The IBRD guarantee is quite new and
renewable energy sector is benefiting from going to develop its knowledge about wind innovative,” said a deal insider. “It’s a way
a transformative trend, with a significant power and the opportunities and challenges to get commercial banks into the L/C on a
amount of coal-fired generation retirements it brings. It will definitely help with the covered basis, providing liquidity support at
expected in the coming decade,” said political traction for renewables in Indonesia the project level.”
Andrew Kwok, Partners Group head private overall,” said a deal adviser. “It is easy to look towards large renewable
infrastructure for Asia. projects in the Asia region such as the
“Investing into Murra Warra 2 at the offshore wind transactions in Taiwan to
construction phase and successfully win,” argued a project participant. “But it is
delivering the project through to its much more challenging and important to
operational phase is consistent with both successfully develop projects like Nur Navoi
our ‘platform expansion’ and ‘building core’ Participants: in a BB- and emerging economy country
strategies in infrastructure.” • Assegaf Hamzah and Partners such as Uzbekistan than it is an AA- and
liquidity rich jurisdiction such as Taiwan.”
• Baker McKenzie / Hadiputranto
Participants: Ashurst, Clifford Chance, Hadinoto & Partners
ICBC, ING, King & Wood Mallesons, Participants: Aecom, Ashurst, Clifford
• Shearman & Sterling Chance, DNV GL, Lockton, Norton Rose
KPMG, Macquarie Capital, Mizuho, MUFG,
SMBC, Snowy Hydro, Société Générale • SMBC / BTPN Fulbright, SEPCO III, TYPSA, Worley

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123
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific renewables portfolio Asia Pacific solar refinancing Asia Pacific coal-fired power
financing – SB Energy Rajasthan Leader Energy Kuala Muda Java 9 and Java 10 Coal-Fired
Solar PV Portfolio IPP Solar PV Portfolio Refinancing Power Plants
The portfolio financing of the 600MW SB Leader Energy’s 49MW Kuala Muda solar The 2GW Java 9 and Java 10 coal-fired
Energy Rajasthan Solar PV project is the PV portfolio in Malaysia is the Asia Pacific power plant complex is the Asia Pacific Best
Asia Pacific Best Renewables Portfolio Best Solar Refinancing deal of the year. Coal-fired Power deal of the year.
Financing deal of the year. The issuer is the renewable energy unit of A Perusahaan Listrik Negara (PLN)
At closing, Softbank (80%) and Bharti Penang-based HNG Capital. The transaction subsidiary, Barito Pacific, and Korean
Enterprises (20%) owned the 2x 300MW is Leader Energy’s debut sukuk – a Shariah- developer Kepco were the sponsors of one
greenfield solar PV project in Rajasthan, compliant bond issuance – that refinanced of Indonesia’s largest project financings
India. The portfolio developed under 2 operational solar power projects in Kuala in 2020. The deal package comprised 2
National Thermal Power Corporation’s Solar Muda, Kedah. tranches – ECA-covered and commercial –
Park Scheme. It benefited from a 25-year The deal further promoted and enhanced amounting to about $2.5 billion.
PPA with NTPC at fixed tariff. Malaysia’s value proposition as a centre for The sponsors raised $1.1 billion from
“With seven international banks in Islamic finance and sustainable investments. commercial banks, one of the country’s
the financing group, the successfully HSBC’s Malaysia affiliate HSBC Amanah was largest commercial tranches for greenfield
implemented financing structure opens the lead arranger on what it described as the IPP financing. A subsidiary of Indonesian
future possibilities to support upcoming first Asean green sustainable and responsible state-owned utility PLN held a majority in
projects for the sponsor across different investment sukuk in 2020. The deal was also the project company. The deal required a
regions,” said a deal insider. the Malaysia ringgit bond market’s first project bespoke corporate governance solution to
BNP Paribas, MUFG, SMBC, Société financing sukuk in 2020. The transaction also satisfy lender concerns because PLN was
Générale, SinoPac, Standard Chartered and signalled the market’s appetite for renewable also the offtaker. It’s a possible model for
Taipei Fubon Commercial punched tickets energy, bolstered by the sponsor’s ability to future Indonesian IPPs.
on the nearly $330 million debt package. issue an attractive and competitive bond. “This was the first deal closed with a PLN
The complex financing structure Leader Energy raised M$260 million ($62 subsidiary as majority shareholder,” said
comprised US dollar and Japan yen million) through the bonds, structured with DBS global head of project finance and
external commercial borrowing facilities. The multiple tranches spanning 1 to 18-year project financial adviser Subash Narayanan.
transaction also had a letter of credit facility. maturities. At issuance, the sukuk had the lowest “Indonesia adapted the shareholder/offtaker
Drawdowns by SB Energy Six Private, the ever coupon and weighted average financing model from the Middle East… Here, the
borrower, under the L/C facility will be taken cost for AA3/AA- rated solar power project PLN subsidiary was a BBB first time risk. The
out by the ECB loan. financing issuances in the ringgit market. commercial banks and the long-term debt
The borrower raised a 5-year, mini- The issuance also received a gold providers, the Korean ECAs, had to work
perm project finance. Four-fifths were sustainability bond rating, the highest grade of towards quite a different funding plan.”
denominated in USD while the remaining MARC’s Impact Bond Assessment methodology. The project financing was under financial
20% was in yen. Cross currency swaps and The rating showed that the sukuk’s standards close when banks had begun slowly stepping
FX forwards for the tenor of the loan hedged aligned with international practice, opening away from coal financing. Sponsors had to
the USD tranche. further opportunities. The deal attracted 12 manage a much-reduced pool of potential
SB Energy Six also raised a L/C facility to investors from insurance companies, asset participants. Nevertheless, the project
pay for the modules and other equipment, a managers, and financial institutions. achieved financial close with 11 financiers.
performance bank guarantee required under Kuala Muda 1 (29MW) and 2 (20MW) are The deal also showcased cooperation
the PPA, and a working capital facility. the projects awarded by Malaysia’s Energy between South Korea and Indonesia as
“The transaction utilised an innovative Commission under the Large-Scale Solar South Korean sponsor Kepco participated
hedging structure, comprising a 1 and 2 procurement programmes. Both in the project, bringing in development
combination of cross currency swaps and projects have a 21-year power purchase institutions, commercial banks, ECA
FX forwards, thereby reducing the number agreement with state-owned electricity utility guarantor, EPC contractors, and advisers.
of hedges that are required to be executed company Tenaga Nasional. “The project is a priority project for the
by the borrower,” said a market participant. HNG Capital has more than 20 years government and is part of the country’s
of experience in Asean’s power market, 35GW programme. Once completed, the
including Cambodia, Malaysia, and Vietnam. power station will become the biggest
The solar farms, which began operations in power complex connected to the Jawa Bali
October 2018 and February 2020, showed grid,” said a deal adviser.
the company’s commitment to push forward
Participants: the country’s renewable sector. Participants: ABNR, Afry, Aon, Assegaf
• Allen & Overy “This deal shows tremendous appetite Hamzah & Partners, Bangkok Bank, Bank
• Cyril Amarchand Mangaldas for sustainable and green-focused offerings Mandiri, Bank Negara Indonesia, Bank of
in the market … and our commitment China, Bank Rakyat Indonesia, Black &
• KPMG
and ability to develop the landscape of Veatch, CIMB, Connusa Energindo, DBS,
• Luthra & Luthra sustainable banking products available in DLA Piper, Hana Financial Group, Hogan
• Mahindra Susten Malaysia,” said a deal adviser. Lovells, Indonesia Eximbank, KEXIM,
• Marsh Kim & Chang, Korea Development Bank,
KPMG, K-Sure, Lee & Lee, Malayan Bank,
• Sterling & Wilson Participants: Adnan Sundra & Low Milbank, Norton Rose Fulbright, Tokyo
• Tractebel HSBC, Malaysian Rating Corporation Electric Power Services, UMBRA

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124
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific cogeneration power Asia Pacific social infrastructure Asia Pacific social infrastructure
Rayong Cogeneration Power primary financing – South refinancing – ACT Law Courts
Plant Australian Health and Medical PPP Refinancing 2020
Research Institute Second
The 92MW Rayong Cogeneration power The 2020 refinancing of the ACT Law
plant in Thailand’s strategically important Building Courts PPP is the Asia Pacific Best Social
Eastern Economic Corridor is the Asia Infrastructure Refinancing deal of the year.
Pacific Best Cogeneration Power of the year. The financing of the South Australian Health The ACT Law Courts project was ACT’s
A local affiliate of Singapore-based Nexif and Medical Research Institute Second first PPP. The PPP is under a 25-year design,
Energy and Thai developer Ratch were Building is the Asia Pacific Best Social build, finance and maintain concession. The
sponsors at financial close. Nexif Energy is Infrastructure Primary Financing deal of the project revamped Canberra’s existing court
a partnership between Singapore-based year. facilities by developing a 4-storey building
independent power management company SAHMRI’s second building is now known with 110KW solar PV array near Vernon
Nexif and Denham Capital, an energy and as the Australian Bragg Centre for Proton Circle.
resources-focused private equity firm. Therapy and Research. Australian Bragg
The primary financing indicated the Centre is part of Adelaide’s BioMed City –
maturity and volatility of Thailand’s power the Southern Hemisphere’s largest health
market, with the international independent and biomedical precinct.
power producer initiating the project and “The asset is unique in Australia,
the participation of local power developer. incorporating the country’s first proton
Thailand authorities welcomed the project therapy unit specialising in next generation
without much interference, allowing the cancer treatment,” said a deal insider.
project to negotiate a more competitive loan At closing, Commercial & General, and
facility and power purchase agreements. the governments of South Australia and The complex connects the Magistrates
The deal showcased the sponsor’s Australia were financial backers of the and Supreme Court buildings. The new
commitment to the development of an IPP development of the more than A$500 ACT Law Courts building, which has been
project in Thailand. Project initiator Nexif million, 15-storey medical development. The operating since 2020, accommodates
Energy is an IPP backed by US-based governments provided a combined A$112 the Court of Appeal, Supreme Court,
financial investors. At the initial stage, Nexif million. Magistrates Court, Coroners Court and
Energy was solely developing the project. Australian Bragg Centre represented Children’s Court.
Ratch, one of Thailand’s largest IPPs, later a “landmark collaboration between the “The new precinct will meet the
joined, leveraging expertise and experience private sector and the State and Federal territory’s needs for the next 50 years in a
between the international and local markets. governments,” said a project participant. more functional, flexible and sustainable
Besides, a good mix of international and Parties negotiated the project financing way,” said a deal insider. “Being the first
local lenders on the deal represented the against a backdrop of financial and refinancing post-completion, this successful
appetite for Thailand’s power market. The construction uncertainty arising from the transaction set up the project for the long-
club comprised Kasikornbank, SMBC and Covid-19 pandemic. term operational phase.”
Standard Chartered. The transaction further Parties target a LEED Gold Rating under Macquarie Capital was financial adviser
showed that the capital mobility in the market the US Green Building Council’s LEED on the A$159 million debt package. It
is sufficiently strong to push forward a deal building certification system recognising comprised a A$156 million term loan and
without the involvement of DFIs and ECAs. best-in-class green building strategies and a A$3 million debt service reserve facility.
The sponsors also negotiated a favourable practices. Both had a 5-year tenor. The deal closed in
PPA for the project, illustrating the developers’ After financial close on construction December 2020.
ability to execute the project. The project has funding in June 2020, Dexus funds acquired Sponsors built a new public entrance
2 PPAs – a 25-year PPA with state-owned ownership of the project for A$446.2 million. and registration area in the open space to
Electricity Generating Authority of Thailand It was one of Australia’s largest ever single- connect the Supreme Court and Magistrates
for 90MW and a gas supply agreement with asset private healthcare acquisitions. The Court. The configuration provided access to
state-owned PTT. The PPA tenor runs longer centre will treat about 600-700 patients per common facilities for members of the public
than the debt tenor, providing a significant year once patients arrive in Q2 2025. and the legal community.
PPA tail for the project. “By combining research, education, “The Supreme Court building was fully
“The joint investment in the Rayong clinical care, business development and refurbished to accommodate Supreme
co-generation project with Nexif Energy innovation, The Australian Bragg Centre Court and other judicial functions and is
represents a strategic move for Ratch will facilitate an unparalleled opportunity to now fully integrated into the completed
in establishing a generation base in the network, collaborate and advance research,” facility in a way that respects and retains
eastern region which will help secure said SAHMRI. its unique heritage value,” said a project
national power supply to the industrial participant.
sector,” said a project sponsor.

Participants:
Participants: Baker McKenzie, Participants: • King & Wood Mallesons
Kasikornbank, Mott MacDonald, • King & Wood Mallesons • Maddocks
Norton Rose Fulbright, SMBC, • Minter Ellison • NAB
Standard Chartered • Norton Rose Fulbright • SMBC

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125
IJGlobal Awards 2020 Asia Pacific
2020

Asia Pacific power transmission


North Phnom Penh-Kampong Cham Transmission Line
HNG Capital’s 100km North Phnom Penh- Founded as a cable and wire company,
Kampong Cham transmission line has won HNG Capital was the first private investor
the Asia Pacific Best Power Transmission that state-owned Électricité du Cambodge
deal of the year. had awarded a BOT project. Prior to that,
The transmission line was Cambodia’s HNG Capital had developed a few IPP
first foreign build-own-transfer power projects in the country. Japan-based
transmission project. The $55 million Marubeni later acquired a 20% equity stake,
refinancing was also the first project finance marking Japan’s first foray into the country’s
in Cambodia for ING and Mizuho. The power market.
deal encouraged diversified capital raising HNG Capital wholly owns the project
from international financial markets for the company through a Singapore-based
emerging energy sector in Cambodia. holdco called Leader Infrastructure. A
The loan replaced financing by Export- market observer said that Marubeni in 2019
Import Bank of Malaysia. The World Bank sold back its 20% LIL equity stake to HNG
Group’s MIGA provided a 10-year extended Capital, since the holdco had exposure to
protection against transfer restriction, coal assets. “Marubeni started to rationalise
expropriation, war and civil disturbance and pandemic,” said a deal adviser. their portfolio, trying to get rid of coal
arbitral award default. The transaction showed the international assets,” said the source.
The tenor was 10 years on debt market’s readiness to step into a market
pricing of about 3.82% per year, IJGlobal with an increasing need for a stable power Participants:
understands. The government of Cambodia supply. • Afry
had yet to issue a 10-year sovereign bond The deal also contributed to Cambodia’s • Allen & Gledhill
to reference, planned for 2022. social and economic development. The • Aon
“The deal represents the lenders’ and refinancing facility allowed the sponsors • Clifford Chance
MIGA’s first transaction in Cambodia… including HNG Capital to continue to • DFDL
demonstrating their commitment to provide reliable electricity supply to the • EY
supporting power generation and capital region. The operational 230kV • ING
transmission in the region notwithstanding overhead transmission line has a length of • Mizuho
the challenges faced by the global Covid-19 about 100km and connects 2 substations.

Asia Pacific transport primary financing


Almaty Ring Road PPP

The 66km Almaty Ring Road PPP is the Asia “A bespoke hedging structure involving Himmatilla Boriev, IsDB’s Almaty Ring
Pacific Best Transport Primary Financing interest rate swaps forwards and interest Road portfolio manager added: “The
deal of the year. rate caps to accommodate project needs project is the first of its kind in the CIS and
Almaty Ring Road is a massive project was the most innovative feature of the will serve as an excellent benchmark for
for the 18-plus million people in the world’s financing structure,” an EBRD spokesperson international investors to exploit PPP models
largest landlocked country. The road in told IJGlobal. for infrastructure projects in the region in the
Kazakhstan is part of the transcontinental EBRD led with a $225 million A loan and near future.”
highway linking Western Europe to Western B loans totalling $125 million from Bank of
China. China and PGGM. Eurasian Development
EBRD president Suma Chakrabarti Bank provided $135 million and Islamic Participants:
described the PPP project as “the region’s Development Bank (IsDB) punched a ticket • Aequitas
first proper PPP and, not surprisingly, the for $100 million. • Allen & Overy
project finance world has been following its Lenders designed a “bespoke • Aon
progress very closely”. installment sale structure developed to • Arup
At closing, the equity holders of BAKAD meet Islamic Development Bank’s specific • Colibri Law
Investment and Operation LLP, the project’s shariah requirements within local law and • Gide Loyrette Nouel
SPV, were Alsim Alarko, Makyol, SK transaction constraints”, according to a deal • Intesa Sanpaolo
Engineering and Construction and Korea insider. • Kazdor Innovatsiaya
Expressway. “The negotiations to conclude the • Kim & Chang
The $742.6 million road PPP project had financing for this high-profile project took • PwC
79% gearing. DFIs dominated the $585 enormous efforts from the joint teams of the • Seco International
million limited recourse project financing – senior lenders, and their legal and technical • White & Case
with a full pass-through of EPC and O&M advisers,” noted head of IsDB’s PPP division • Wiilis Towers Watson
risks to the relevant contractors. Noman Siddiqui.

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2020

Asia Pacific data centre Asia Pacific telecoms Asia Pacific water – Binh Duong
Acquisition of 88% in AirTrunk Acquisition of Jio Platforms Water Treatment Expansion
The Macquarie Infrastructure and Real The acquisition of Jio Platforms is the Asia The Binh Duong water treatment expansion is
Assets-led acquisition of an 88% equity Pacific Best Telecoms deal of the year. the Asia Pacific Best Water deal of the year.
interest in AirTrunk is the Asia Pacific Best Thirteen financial and strategic investors Binh Duong Water Environment (BIWASE)
Data Centre deal of the year. acquired about 33% equity interest – established by the Vietnamese government
MIRA led the investor consortium, in Reliance Industries’ Indian mobile in 1975, privatised in 2016 and listed in
including Canadian pension fund PSP communications operator Jio Platforms for Ho Chi Minh a year later – is a water and
Investments, that acquired its controlling more than Rs1.52 trillion ($21 billion). waste management company providing
stake from Goldman Sachs, Sixth Street Investors were Facebook, Google, Silver services to Binh Duong province in southern
Partners and AirTrunk’s founder Robin Khuda. Lake, Vista Equity Partners, General Atlantic, Vietnam. The company, however, has faced
The strategic acquisition was one of Asia KKR, Mubadala, ADIA, TPG, L Catterton, multiple challenges due to insufficient
Pacific’s largest data centre transactions at Public Investment Fund of Saudi Arabia, creditworthiness and slow transformation.
more than A$3 billion ($1.84 billion). The deal Intel Capital and Qualcomm Ventures. The project entailed corporate loans to
signified the rapid growth of the data centre Google took a 7.73% equity stake on fully support BIWASE’s investment to expand
industry in the region and allowed AirTrunk to diluted basis for Rs337.37 billion. Tan Hiep water treatment plant’s production
accelerate its ambitious expansion. Deutsche Morgan Stanley was Reliance’s financial capacity by 100,000 m3 per day, construct
Bank was lead debt arranger. adviser on this series of consequential a new raw-water transmission pipeline and
APAC-focused AirTrunk is a hyper-scale transactions. serve the growing water demands from
data centre platform for large cloud, content, domestic customers and industrial zones.
and enterprise customers. At closing, “The company is the leading privatised
AirTrunk owned 5 data centres with a “Jio started with a vision of company in Vietnam’s water sector and
combined capacity of 450MW in Australia, connecting everything by operates with lowest level of non-revenue
Hong Kong and Singapore. water in the country,” said a deal insider.
The North Sydney company ran a private
building a robust and secure Asian Development Bank and Japan
sales process that received interest from wireless and digital network.” International Cooperation Agency loaned
several potential buyers. Infrastructure funds, BIWASE a combined $16 million. The
pension funds, and strategic investors bid transaction was ADB’s first viable private
on the acquisition. AirTrunk also negotiated The Jio Platforms management team sector financing in Vietnam’s water sector.
with Australia’s Foreign Investment Review had brought “extraordinary engineering The project represented the collaboration
Board to ensure restrictions on bidders were capabilities to bear on bringing the power between local and international
minimised to optimise competitive tension. of low-cost digital services to a mass organisations to support the province in
The MIRA-led consortium submitted an consumer and small business population,” satisfying its rapidly growing water needs.
inventive plan and investment structure for said Silver Lake co-chief executive and The financing package, including 2
the AirTrunk founder and CEO. MIRA had managing partner Egon Durban. parallel loans and technical assistance
negotiated with the founder that he would In 2016, Mukesh Ambani, chairman and on a grant basis, strengthened BIWASE’s
maintain a “material stake in the business” managing director of Reliance Industries, creditworthiness and institutional capacity
and would remain as chief executive under launched Jio Platforms subsidiary Reliance to provide water supply services. Besides,
a long-term arrangement, supported by the Jio Infocomm. Reliance crushed competition the one-stop solution loan facility supported
existing executive management team. from more established mobile telecoms BIWASE’s transition from reliance on sovereign
The deal featured a financing package players, including Bharti Airtel Telecom and financing to private sector financing.
promoted by AirTrunk as part of the sales Vodafone India, by offering free voice calls Binh Duong is one of the country’s fastest
process. The asset-level financing package throughout India. developing provinces and has attracted $5.7
also contained market-leading features, Jio also swallowed younger brother Anil’s billion of foreign direct investments since
allowing the company access to more Reliance Communications the following year 2016. The region has the fastest-growing
financing to continue their regional expansion. and pushed Vodafone into a merger with population in the country, putting pressure
“AirTrunk’s established APAC footprint and a another local player Idea Cellular Today. At on water treatment, supply and distribution.
clear path to expansion in other markets was closing, Jio Platforms’ customer base was Water demand annually grew 20% from
important to the success of the transaction,” 398.3 million. 2016-2019. BIWASE projected that the water
said a deal adviser. “This is due to the “Jio started with a vision of connecting demand will exceed its capacity by 2021.
region’s emerging economies and growing everything by building a robust and secure The expansion will allow BIWASE to increase
populations, leading to substantial growth in wireless and digital network and extending its water treatment capacity by 80%.
data, a shift to the cloud and greater need for the benefits of digital connectivity to “BIWASE supplies water to this fast-growing
in-country workloads and storage.” everyone in India,” Mukesh Ambani said. province and has a total water production
“Thirteen investors, which include the largest capacity of 311,300 m3/day, a total
technology companies and investors globally, distribution pipe length of 4,276 kilometres,
now share a common vision with us.” and more than 269,000 connections with
Participants: Baker McKenzie,
service coverage of 78% of the province’s
Deutsche Bank, DLA Piper, Gilbert &
population,” said a project participant.
Tobin, Goldman Sachs, Grant Samuel,
Participants
Hogan Lovells, King & Wood Mallesons,
• AZB & Partners Participants
KPMG, Macquarie Capital, Norton Rose
• Davis Polk & Wardwell • IBIS Consulting
Fulbright, PwC
• Latham & Watkins • Mayer Brown

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2020

Asia Pacific transport refinancing


WestConnex Toll Road Refinancing
The 2020 refinancing of the 33km
WestConnex toll road is the Asia Pacific
Best Transport Refinancing deal of the year.
WestConnex (WCX) is a critical part of the
government of New South Wales’ integrated
transport plan, to connect Sydney’s west
and south-west to the commercial business
district and the corridor to Sydney Airport
and Port Botany.
Australia’s largest road infrastructure
project comprises 3 long-term concessions
to 2060 – stage 1 (M4 motorway), stage 2
(M5 motorway) and stage 3 (M4-M5 link). A$1.25 billion 2-year bridge facility. “Tapping into the success and market
Stage 3 is the only stage that remains under Twenty local and international banks appetite of the bank debt refinance, WCX
construction. Sections along Stage 1 and 2 arranged the debt package. “The success is seeking to term out the bridge facility
have more than 20 years traffic history. of the transaction paves the way for WCX through an inaugural debt capital markets
At closing, a consortium of Transurban, to implement its desired long-term capital issuance,” said a deal insider.
CPP Investments, Australian Super, and Abu structure,” said a project participant. “The
Dhabi Investment Authority held 51% of the refinancing … introduced a flexible group Participants: Agricultural Bank of
project company, while NSW government funding platform to which other WestConnex China, Allens, ANZ, Bank of China,
held the remainder. assets could be added in future.” Bank of Communications, CBA, CIBC,
UBS was financial adviser on the The transaction represented one of the CIC Bank, Clifford Chance, Crédit
transaction that raised senior debt at the largest refinancing transactions in the Agricole, Export Development Canada,
WCX group level to refinance existing Australian infrastructure sector in 2020. It ICBC, ING, King & Wood Mallesons,
debt in 100% owned M4 toll road. The also demonstrated the strength of the WCX Korea Development Bank, Mizuho,
financing vehicle behind WCX refinanced project in getting a significant reduction MUFG, NAB, Scotiabank, SMBC,
debt to raise A$4.25 billion ($3.22 billion), in funding costs despite impacted traffic Société Générale, Westpac, White &
comprising A$3 billion term loan facilities volumes and market conditions due to Case
with tenors of 3, 5 and 7 years and a Covid-19.

Asia Pacific mining


Okvau Gold Mine

Cambodia’s Okvau Gold Mine, developed Emerald, in addition, had placed The deal involved extensive negotiations
by Australia-listed Emerald Resources, won $3.5 million of its shares to Sprott. The between the lenders, sponsors, and
the Asia Pacific Best mining deal of the year. subscription allowed Emerald to expand Cambodian mining authorities. The advisers
The transaction was Cambodia’s first-ever its footprint in Cambodia. The ASX-listed were able to accommodate the needs
project financing of a mining project. The company is using the proceeds from this, of all sides to obtain the mining license
project is significant as it opens further and a $75 million share placement on and financings, setting a precedent for an
opportunities in the region alongside Okvau and regional exploration programme emerging market.
establishing Emerald as a key player in on Emerald’s 1,426km² exploration footprint “Our team was required to engage heavily
the market. The financing agreement in Cambodia. with Cambodian counsel in regard to the
showcased the investors’ commitment and The subscription allowed Emerald to local law security and worked to overcome
financiers’ confidence in the project. expand its footprint in Cambodia. In return, a number of jurisdictional and logistical
The deal represented a unique funding Sprott will have the exclusive right to fund hurdles to ensure perfection of the security
arrangement between the lenders’ future acquisition or development project in-country,” said a deal adviser.
requirements and the sponsor’s objectives. opportunities.
Apart from the $60 million debt facility The Okvau deposit, about 275km
provided by Canadian mining-focused asset northeast of Phnom Penh, is one of the Participants:
manager Sprott Private Resource Lending most advanced gold mines in Southeast
• Renaissance Minerals
II, Emerald also signed a $100 million Asia. The single open-pit mine has a 7-year
additional funding under an acquisition and mine life and an estimated capacity of • Norton Rose Fulbright
development facility for future opportunities. 106,000 ounces of gold production per • Sprott
The financing allowed Emerald to mobilise year. The gold mine has an 84% recovery • Euroz Securities
capital for the project development and rate and a head grade of 1.98 gram per
pipeline. tonnes.

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IJGlobal Awards 2020 MENA winning deals

2020

MENA winners
The Middle East and North Africa Winners in the MENA transaction category are:
dished up a fascinating array of infra- • Editor’s Choice MENA – Umm al Quwain IWP
structure and energy transactions to
have made it to financial close over • MENA export finance – Euler Hermes covered facility
the course of the judging period – the
• MENA oil & gas – Project Galaxy
2020 calendar year.
Here we have done our best to • MENA power – Fujairah F3 Independent Power Project
identify the most challenging and in- • MENA refinancing water – Al Dur phase II IWPP refinancing
teresting to have made it over the line, • MENA refinancing O&G – ADNOC Gas Pipelines Acquisition Refinancing
singling out for praise the fruits of your
• MENA refinancing Mining – Ma’aden Wa’ad Al Shamal Phosphate
(home-grown) labour in a very curious
Company refinancing
year to have been doing business.
• MENA renewables – DEWA V
Congratulations to all the winners. • MENA renewables solar – Al Dhafra Solar PV
• MENA transport – Cairo Monorail PPP
• MENA renewables wind – Genesis Wind Farm
• MENA water desalination – Jubail 3A
• MENA social infrastructure – Noor Abu Dhabi LED Streetlighting Phase
1 PPP
• MENA water wastewater – Umm al Hayman

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IJGlobal Awards 2020
2020

Editor’s Choice MENA – Umm


al Quwain IWP
IJGlobal editorial director Angus Leslie Melville taps MEA reporter James Hebert’s wisdom
to choose the inaugural winner of the Editor’s Choice Award for the MENA region…

This year we ploughed through 1,400 And there’s more. UAQ is the first IWP Suhail Mohamed Al Mazrouei
submissions for IJGlobal Awards 2020 – the non-recourse project financing structure
highest entry level for many years thanks to to have been procured by the awarding
ramped up marketing – and we raced to put authority – Federal Electricity and Water
company awards in front of our independent Authority (FEWA) – and it is the largest
judging team while tackling deal entries desalination project in the Northern
ourselves. Emirates.
Every year it’s a relief to see entries for All those factors combine to make it the
“the right transactions” – the ones you were inaugural winner of the IJGlobal Editor’s
hoping to see submitted… then holding Choice for the Middle East and North Africa.
them up for investigation to see if they look
quite so good when compared with rivals. Umm al Quwain IWP
However, when it comes to the Editor’s The UAQ project has been procured to
Choice Award… that’s our prerogative. deliver a 150 million imperial gallon per
James Hebert, resident IJGlobal MEA day (MIGD) greenfield seawater reverse-
hand, was quick to identify the $800 million osmosis desalination plant that is being
Umm al Quwain IWP (UAQ) in the Emirate developed by ACWA Power, Mubadala and
of Umm Al Quwain, United Arab Emirates, as FEWA.
a stand-out deal for the region that warrants It is due to be commissioned in 2022
recognition as the winner of the inaugural and, once completed, it will benefit from a
Editor’s Choice Award for MENA. 35-year water purchase agreement (WPA)
This transaction primarily wins based on with FEWA. "This project is FEWA’s
it being one of the first in the UAE to be IWPPs in the UAE have historically been
backed by a federal sovereign guarantee procured by EWEC, which has primarily
first asset in partnership
rather than any of the individual Emirates. been active in the Emirate of Abu Dhabi with the private sector. Its
Further, as part of the boom in regional as well as Fujairah. More recently, new implementation will reinforce
water deals that has been linked with soft IWPP programmes were fostered in the
mini-perms, UAQ bucks the trend in that neighbouring emirates of Dubai and UAE’s Water Security Strategy
the $688 million of senior financing was Sharjah, under the remit of DEWA and 2036 as well as bolster its core
settled on a 24.5-year, partially-amortising FEWA. Each programme was supported by
term facility with an average debt pricing of strong sovereign support and investment
programmes."
200bp. grade offtake wraps.

FEWA launched its maiden IWP project under an international competitive


tender in 2016 alongside a range of other power and water plants

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IJGlobal Awards 2020
2020

Paddy Padmanathan This landmark achievement supported the Rajit Nanda


structuring of a long-term debt package, with
a 24.5-year term loan partially amortising
down to a residual balloon of 18%.
With an equivalent notional tenor of 28
years, this is one of the longest IWP project
finance schemes to have closed in the Middle
East without tenor-reducing cash sweeps.
This truly sets apart this financing
structure from other greenfield financing
funded on a soft mini-perm or hard mini-
perm basis, making it a stellar winner of the
Editor’s Choice Award for the MENA region.
"This project is another example "We are delighted to have shown
of our commitment to supply From those who made it happen FEWA that we are a partner
The consortium of ACWA Power, a global
affordable potable water." leader in water desalination and power
of choice through the timely
generation, and MDC Power Holding financial close of this project."
The IWP – without the added P for power Company, an entity fully owned by Mubadala
– is a more recent development in the local Investment Company PJSC (Mubadala)
market. FEWA launched its maiden IWP worked with an international team of lenders
project under an international competitive and advisers to bring the deal to a successful Suhail Mohamed Al Mazrouei, UAE
tender in 2016 alongside a range of other conclusion in March (2020). Minister of Energy & Industry and chair of
power and water plants. Under the terms of the agreement, FEWA FEWA, said: “This project is FEWA’s first
Despite benefiting from typical BOO holds a 20% of the stake, while ACWA asset in partnership with the private sector.
features generally observed on comparable Power and Mubadala each own 40%. The Its implementation will reinforce UAE’s Water
projects, the lack of procurement track record, government of Umm Al Quwain will join as Security Strategy 2036 as well as bolster its
the absence of investment-grade credit a partner in the project and will own a stake core programmes.”
support and the unprecedented nature of the at a later date. Paddy Padmanathan, president and
federal credit led to a comprehensive due The gearing in Umm al Quwain IWP was chief executive of ACWA Power, also
diligence and project document negotiation 85:15 and the $680 million debt package speaking at the time of financial close said:
process around the offtake structure. This was signed on 7 November 2019 with the “Successfully achieving financial closure at
was led by a core group of experienced senior debt drawn in March 2020. A club of this stage is testament to the readiness of
international lenders that had been involved in seven banks participated on the senior debt the market for private-public partnerships.
the deal since bid submission. package: Standard Chartered (lead), First “It also reflects ACWA Power’s strong
The project was initially tendered in 2016 Abu Dhabi Bank, Korea Development Bank, financial standing and reliability as well
as a 45 MIGD IWP, subsequently awarded to MUFG Bank, Samba Bank, Siemens Bank as the credence we have gained from
ACWA Power. In parallel, Mubadala secured and SMBC. global and financial institutions that has
a pipeline of 135 MIGD of projects in the Standard Chartered Bank played a pivotal been developed over years of successful
Northern Emirates. At the end of 2018, in role in the financing while First Abu Dhabi Bank operations and partnerships.
the wake of competitive bids placed in the was the facility agent, security trustee and “This project is another example of our
GCC for other IWPs, FEWA amended the account bank. The lenders were advised by commitment to supply affordable potable
process and merged the various projects Norton Rose Fulbright on legal aspects and by water to more people by developing
into a single plant to allow for further Atkins on technical. Mazars was model auditor. efficient water infrastructure that will cater
optimisation of the tariff. FEWA was advised by KPMG in a for the growing demand in the country.”
The new project, with total capacity financial advisory role, working alongside Al Rajit Nanda, ACWA Power chief
of 150 MIGD, was re-developed in an Maqtari Auditing. Watson Farley & Williams investment officer, added at the time: “Umm
accelerated timeline, including negotiations was on legal with ILF Consulting Engineers Al Quwain IWP marks a special moment
for a new land lease, EPC and O&M providing technical advisory. for us, not only because it is the largest
arrangements – which led to substantial The principal adviser to the sponsor was desalination project in Northern Emirates but
economies of scale, making it more Clifford Chance and much of the consulting also due to its role in the development of
comparable to the benchmarked IWPs element was provided by internal functions. the first IWP non-recourse project financing
developed in parallel. Laughlan Waterston– head of corporate structure for FEWA that will deliver value for
The offtake structure is based on a water and project finance at SMBC’s Middle East years to come.
purchase agreement contracted with FEWA, department based in Dubai – said: “We “We are delighted to have shown FEWA
providing for a bankable risk allocation, were pleased to support this vitally important that we are a partner of choice through the
availability-based cash flows and credit project for the Northern Emirates, not only timely financial close of this project and our
support issued by a strong investment- the largest desalination plant in the Northern contribution to securing cost-effective and
grade sovereign entity. Emirates but one of the most advanced in energy efficient potable water supply for the
While this all appears in line with previous the region, using highly efficient seawater RO Northern Emirates.
IWPs developed in the GCC, the length of technology to produce nearly 700,000 cubic “This project is a strong indicator of how
the offtake is unprecedented with 35 years metres per day of competitively priced clean ACWA Power has developed a stronghold in
of operational life contracted to FEWA and water for local businesses and residents. the United Arab Emirates. We look forward to
35 years of credit support provided by the This is a role model for future desalination capitalising on this opportunity and supporting
UAE Ministry of Finance. projects to follow.” the envisioned growth for the country.”

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2020

MENA export finance – Euler MENA Refinancing Water – Al MENA refinancing O&G – ADNOC
Hermes covered facility Dur phase II IWPP refinancing Gas Pipelines Acquisition
Refinancing
The IJGlobal export finance award for the The award for MENA water refinancing deal
Middle East and North Africa has this year of the year has been won by ACWA Power The award for MENA Oil and Gas
been won by HSBC and Euler Hermes for for the refi of the Al Dur Phase II IWPP Refinancing deal of the year has been won
the role they played on a major transaction located in Bahrain. by Galaxy Pipeline Assets BidCo for the
in the Kingdom of Saudi Arabia. This transaction consisted of the refinancing of its participation in Abu Dhabi
HSBC acted as a mandated lead arranger, replacement of around 44% of the senior National Oil Company’s (ADNOC) natural
an original lender and the agent bank in financing which is of particular note as this gas pipeline business.
regards to the $258 million export credit facility pioneering deal was brought to conclusion The project won thanks to its significance
supported by Euler Hermes, the official ECA of within the construction period. This is a first to the UAE oil and gas sector and the
Germany. Credit Agricole is structuring bank. in the annals of project financing across the sponsors’ recurrence to capital markets.
The facility was extended to the Saudi entire GCC/MENA region. The project centres on the $4 billion bond
Arabian Ministry of Finance to finance the The refinancing had to be affected refinancing secured by Galaxy Pipeline
purchase of buses from MAN Truck & Bus without triggering any defaults within the Assets BidCo that follows an even more
SE and EvoBus GmbH – a subsidiary of existing project financing. This involved significant deal from earlier in 2020 – a
Daimler AG – for the new Riyadh public close interactions with all stakeholders transaction that also features in these pages.
transport network. including inter alia the offtaker, the offtaker’s In 2020, the Global Infrastructure
advisers, the existing lenders and the Partners-led consortium bought a 49%
lenders, legal, technical and insurance stake in Abu Dhabi National Oil Company’s
advisers. natural gas pipeline business for $10 billion,
Due to these constraints, the replacement including $8 billion of debt.
of SFD had to be put in place within a tight The fresh bonds refinance half of the
six-month period. loans raised by the consortium, which also
The sense of urgency as to limiting any includes Brookfield Asset Management,
negative impact on the project schedule Snam, OTPP, GIC and South Korean investor
and the project economics also rose due to NH Investment & Securities.
The buses will help reduce greenhouse the occurrence of the Covid-19 pandemic. A $320 million debt service reserve facility
gas emissions and air pollution as well The project sponsors looked for a solution was also put in place alongside the bond,
as alleviate traffic congestion in the which had to be structured accordingly, provided by a 12-strong bank lending club.
metropolitan Riyadh area through a shift as the credit markets shifted to tighter The transaction was reportedly the largest
towards public transportation. commercial terms and more stringent single global energy infrastructure deal in
The bus fleet will integrate with a new due-diligence requirements, such as banks 2020 and the MENA region’s biggest. It
metro system that is currently under requiring additional diligence on Covid-19 will unlock $10.1 billion in foreign direct
construction in Riyadh, with the entire preparedness. investment into the Unite Arab Emirates.
project estimated to remove 250,000 car Given that SFD facility was a tightly ADNOC’s gas network is a core piece
trips from the city every day. priced financing and was being replaced of midstream infrastructure in the UAE
Particularly of interest is that this facility with commercial debt; and the lender and serves as a strategic pipeline system,
was structured to be compliant with the requirements in terms of coverage ratios which acts as the critical link between UAE
Green Loan Principles, as outlined by the had to be met – a mezzanine tranche was low-cost natural gas supply and robust in-
Loan Market Association in 2018. The loan introduced. This is the first instance of a country demand.
documentation confirms a commitment to project recourse mezzanine structure for any This agreement is the largest transaction
report on positive environmental impacts of IPP/IWPP in Bahrain and only the second since ADNOC announced the expansion of
the underlying project. instance of fully project recourse mezzanine its partnership and investment model in 2017,
This is the first such ECA-covered in GCC IPP/IWPP space. which aims to unlock value for ADNOC.
transaction in the kingdom and is understood The refinancing was oversubscribed Since then, ADNOC has entered the debt
to be the first “Green” ECA facility in the to the extent of 1.3 times, with additional capital markets for the first time, issuing a
Middle East. It is also the first ECA facility financing committed by 3 existing senior $3 billion bond backed by the Abu Dhabi
raised by the kingdom’s finance ministry. lenders (APICORP, Bank Saudi Fransi, Riyad Crude Oil Pipeline; partially floated ADNOC
This transport deal forms part of the Saudi Bank) and 3 new lenders (Al Rajhi Bank – Distribution, the first-ever IPO of an ADNOC
finance ministry’s strategy to support the both senior and mezzanine, Arab National Group company; and entered into several
completion of major development projects in Bank, National Bank of Bahrain). strategic partnerships in its drilling, refining,
the kingdom with increased contributions from The refinancing was given effect through fertilizer and trading businesses, among others.
the private sector. To this end, it is encouraging an innovative two-step process. This was This is the latest development on the ground
project owners in the public and private done to ensure that the project was not that exemplifies ADNOC’s pioneering spirit.
sector to adopt similar sources of finance. under-funded at any point of time and
Given the pace at which Saudi Vision that the construction schedule was not
Advisers
2030 – a comprehensive programme to negatively impacted.
• Citigroup
reduce Saudi Arabia’s dependence on
• HSBC
oil, diversify its economy, and develop Advisers • Clifford Chance
public service sectors – moves is likely • Shearman & Sterling • Latham & Watkins
that transactions of this nature will become • Deloitte • Mazars
increasingly common on the ground.

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2020

MENA power
Fujairah F3 Independent Power Project

When it comes to power projects, IJGlobal that JBIC had provided a soft mini-perm
rarely has to look far in the Middle East and financing.
North Africa for inspiration when it comes to The project will be critical to ensuring
picking a winner for an award. And so it was security of supply for the UAE grid in the
this year when Fujairah F3 IPP stood out as coming era of significant intermittent
the obvious winner. renewable generation coming online,
This project is to deliver a 2-2.4GW providing flexibility to the UAE’s power grid,
combined-cycle gas-fired power plant at setting a significant example for others in
Qidfa in the Emirate of Fujairah, on the the GCC to follow.
Gulf of Oman. This will be the third of the
three power/water installations at the Qidfa
complex, adding to the operational F1 and Advisers
F2 IWPP. • Alderbrook
The project was tendered by Emirates • Cranmore Partners
Water & Electricity Company (EWEC) • PwC
with Marubeni declared the first-ranked of non-recourse senior debt, a $200 million
• White & Case
shortlisted bidder and going on to sign the equity bridge loan, and a VAT facility. The
• Herbert Smith Freehills
PPA in February 2020 and progressing to senior debt corresponds to 80% of the total
funding that was delivered via a long-dated, • Norton Rose Fulbright
reach financial close mid-June.
soft mini-perm structure provided by JBIC • Clifford Chance
This was achieved in the midst of
and a group of commercial banks. • Afridi & Angell
the Covid-19 pandemic, despite travel
In addition to the typical project costs, • Al Tamimi
lockdowns imposed across multiple
jurisdictions, and while working with a large a VAT facility was secured from Standard • Fichtner
and geographically wide-spread financing Chartered Bank to fund VAT cash flows • Lummus Consultants International
group that ranged from Japan to the UK. during construction. • Operis
The total project cost is $1.2 billion and One of the stand-out data points from this • Willis Towers Watson
financing was provided through $900 million transaction is that it marked the first time

MENA oil & gas


Project Galaxy
It will come as little surprise to regular This innovative transaction structure
readers of IJGlobal that a mammoth deal allows ADNOC to tap new pools of global
like Project Galaxy should win the oil and institutional investment capital, while
gas award for the Middle East and North maintaining full operating control over the
Africa given its size and implications for the assets included as part of the investment.
market. It also signals continued strong interest
Project Galaxy involves the sale of 49% in ADNOC’s low-risk, income-generating
of non-operated interest in the Abu Dhabi assets, and sets another benchmark
National Oil Company (ADNOC) sales gas for large-scale energy infrastructure
and natural gas liquids (NGL) transportation investments and monetisation in the UAE
pipelines network. The newly-formed and the wider region.
ADNOC Gas Pipeline Assets LLC has lease
rights to 38 pipelines covering 982.3km.
ADNOC – the state-owned oil company Advisers
of the UAE – will pay ADNOC Gas Pipelines the more impressive for being able to raise • Bank of America
a volume-based tariff for the use of $7.96 billion of loans during the pandemic, • First Abu Dhabi Bank
pipelines that transport sales gas and NGL and at a time of low oil and gas prices. • Mizuho Securities
from upstream assets to Abu Dhabi’s key The almost $10 billion acquisition price • Moelis & Company
outlets and terminals. for the stake was financed by a bridge-to- • Morgan Stanley
A consortium group composed of bond facility and the transaction represents
• Linklaters
Brookfield Asset Management, GIC, Global the largest energy infrastructure related
• DLA Piper
Infrastructure Partners, NH Investment & financing in the Middle East.
• Dentons
Securities, Ontario Teachers’ Pension Plan The financing and hedging transactions
were implemented on a fast track basis • Latham & Watkins
and SNAM was selected to participate
in Project Galaxy The largest brownfield in line with the acquisition timeline. The • Clifford Chance
acquisition in 2020 was financed through signing of finance documents occurred on • Simpson Thacher & Bartlett
mix of equity and bank debt provided by 17 23 June and financial close was completed • Arup
international and regional banks. It was all by 15 July.

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MENA refinancing mining


Ma’aden Wa’ad Al Shamal Phosphate Company refinancing
The award for Middle East and North Africa facilities provide attractive and flexible investment between Ma’aden (60%), The
mining refinance deal of the year has corporate loan terms and conditions in place Mosaic Company (25%) and SABIC (15%).
been won by Ma’aden Wa’ad Al Shamal of the more restrictive project financing terms Ma’aden chief executive Abdulaziz Al
Phosphate Company (MWSPC) for its and conditions originally put in place. Harbi said: “The refinancing of Ma’aden
corporate refinancing. The “covenant-lite” terms of the Wa’ad Al Shamal Phosphate Company
The project won thanks to the Saudi refinancing arrangements, combined with was a strategic move for Ma’aden that
Arabian Mining Company’s (Ma’aden) an extended debt repayment schedule, are significantly strengthened our long-term
subsidiary Ma’aden Wa’ad Al Shamal a step towards significantly strengthening cash flow position and enabled us to pursue
Phosphate Company – ably assisted by the long-term cash flow position for new growth and development projects. It
financial advisers BNP Paribas and Samba Ma’aden as part of its strategy to pursue is good to see such strong appetite from
Capital – combining debt transfer and new growth and development projects. banks to lend to MWSPC despite the market
refinancing in an effective manner. The transactions included simultaneous challenging conditions.
The transaction consisted of the negotiation with two Saudi government “We are pleased to see that the market
rescheduling of its SAR6.7 billion ($1.8 billion) entities and a group of commercial banks. recognises this as the winning deal. It gives
indebtedness owed to the Public Investment It was closed during early part of Covid-19 us an extra boost to continue our success
Fund. The company further transferred the lockdown in the Kingdom of Saudi Arabia. growth story. As Saudi Arabia’s national
indebtedness owed to the Public Investment The financial institutions to have supported mining champion, we continue to play
Fund to the Public Pension Agency. this deal are Alinma Bank, the National a key contributing role in the economic
MWSPC also secured the refinancing Commercial Bank, Al-Rajhi Bank, Bank diversification under Vision 2030.”
of its indebtedness owed to a syndicate Albilad, Riyad Bank, Saudi British Bank, Bank
of commercial banks and other financial AlJazira, Samba Bank, Saudi Fransi Bank. Advisers
institutions using the proceeds of new The MWSPC integrated phosphate fertiliser • BNP Paribas
indebtedness provided by a syndicate of production complex operates out of the • Samba Capital
nine commercial banks. Wa’ad Al Shamal Minerals Industrial City and • Allen & Overy
The entire value of refinancing is SAR8.6 is understood to be one of the largest in the
• White & Case
billion ($2.3 billion) and the new financing world. It comprises a $8 billion joint venture

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2020

MENA Renewables – DEWA V MENA Renewables Solar MENA transport


Al Dhafra Solar PV Cairo Monorail PPP
When it comes to renewable energy
projects in the Middle East and North The lure of a monorail project is too much
Africa, few can hold a candle to the glorious for the IJGlobal editorial team not to give
900MW DEWA Phase V IPP in Dubai which this fantastic deal an award… and being the
reached financial close in October in the longest mass transit solution of this format
midst of the Covid-19 outbreak.
in the world, it is a worthy winner of MENA
This project stands out for many reasons,
transport accolade.
one of them being that it achieved one of the
The $4.5 billion Cairo Monorail PPP is the
world’s lowest solar PV tariffs at $1.6953 cents When it comes to solar projects in the
CMYK 0 74 78 0 CMYK 1 41 90 0

first of its kind in the MENA region and it


RGB 255 100 50 RGB 254 174 9

per kWh and successfully preserved the tariff Middle East and North Africa region, big is
CMYK 0 87 79 0 CMYK 64 49 37 0
will have a significant impact on the ground
to achieve financially close in spite of turmoil in
RGB 252 60 45 RGB 254 174 9

beautiful… and on that front alone the 2GW once it opens for service in 2023, offering
the financial markets caused by the pandemic. Al Dhafra solar PV development in the UAE a fast connection between Cairo and its
The EPC contractor is Shanghai Electric ticks a very significant box.
while the O&M partner is NOMAC, ACWA neighbouring cities, slashing commute
This mega solar park is a strategic times and reducing congestion.
Power’s wholly-owned subsidiary specialised project for the UAE and comes with strong
in operating power and water projects The transport ministry division National
support from the government as part of its Authority for Tunnels (NAT) put out the
across multiple technologies. commitment to source 50% of its energy
The sponsor team leveraged its experience tender for the PPP in 2018 as a priority
from clean resources by 2050. Al Dhafra public services project, mandated by the
and expertise from previous DEWA projects goes a long way to meeting these targets as
and factored in the potential impact of Egyptian government. Bombardier won the
it will generate electricity equivalent to the contract the following year (2019) to develop
Covid-19 in the construction schedule to consumption of 160,000 households.
further facilitate project execution. the monorail system alongside 2 Egyptian
An interesting point is that this is the first
The senior debt amounted to $419.5 companies – Arab Contractors (construction)
plant of such scale to deploy bifacial module
million including both base commitment and Orascom Construction (EPC).
technology, capturing as such light on both
and standby commitment from a group of The two-line project will be the first mass
sides of the PV modules and thus benefitting
nine regional, international and Chinese transit links between Greater Cairo, the new
from the reflection of light from the ground in
banks. Meanwhile the junior debt amounted capital and 6th of October City. Work includes
order to yield higher generation.
to $112.5 million, provided by three lenders building 34 stations, maintenance facilities,
And this deal set new records with the
to improve project economics and further depots and an operations control centre.
sponsors at financial close claiming to have
increase tariff competitiveness. achieved the worldwide lowest electricity cost. Cairo Monorail will have the capacity to
ACWA Power – as lead sponsor – received The solar park itself spans more than 20 transport around 45,000 passengers an
commitment from several international and square kilometres featuring 4 million PV hour in each direction at full capacity and –
regional lenders during the tender process, but modules and the project sponsors – EDF once complete – it will cover almost 100km.
these were whittled back on the basis of price Renouvelables (EDFR), Jinko Power, TAQA The €1.9 billion financing was provided
competitiveness and adherence to terms. and Masdar – are working in partnership by commercial banks with JP Morgan
The debt has a 27-year door to door tenor with EPC contractor China Machinery acting as facility agent alongside eight
– project completion plus 24 years – with Engineering Corporation. other lenders, and UK Export Finance
one-year tail against a 25 year PPA, all on a Construction started in October 2020 and (UKEF) guaranteeing the largest amount
soft mini-perm basis. the project has a 30-year PPA with EWEC of financing it has ever provided for an
The deal represents one of the few for 100% of produced electricity, as of overseas infrastructure project. The loan has
projects in the region that managed to completion. a 14-year tenor and a maturity date of 18
retain Chinese bank participation as the Olivier Bordes, chief executive of EDF December 2034.
banks drastically scaled back their long- Renewables Middle East, said: “This project Bombardier will design, supply and install
term overseas lending during the year. clearly demonstrates our ambitions to deliver rolling stock as well as the electrical and
Also noteworthy for this transaction, this competitive, innovative, and low-carbon mechanical equipment for the project. The
was the first time for any IPP in UAE that there energy solutions and to support the United rolling stock will be manufactured in Derby,
was no government guarantee to backstop Arab Emirates clean energy vision towards a UK. Bombardier will also provide project
termination payment obligations of the sustainable future. EDF’s CAP 2030 strategy management, systems engineering and
offtaker, leaving sole recourse to the offtaker. is in line with the regional ambitions aiming to integration, and test and commissioning
reduce the middle eastern countries’ carbon for the trains and signalling. Orascom’s
Advisers footprint. We are thriving to expand renewable work includes the design and construction
• EY energies in the region to fight together the of all infrastructure and civil works. The
• ACWA Power global climate change, and above all are consortium will operate and maintain both
• Trowers & Hamlins looking forward to successfully reaching, lines for 30 years.
• Norton Rose Fulbright with our partners and contractors, the full
• Covington & Burling commissioning of Al Dhafra PV project.”
• GOPA - International Energy
Advisers
Consultants
Advisers • Ashurst
• Mercado Aries
Alderbrook, Synergy Consulting, Clifford • White & Case
• WSP
Chance, Norton Rose Fulbright, King & • Zaki Hashem & Partners
• INDECS
Spalding, Linklaters, Shearman & Sterling, • Khatib & Alami
• Deloitte
White & Case, ILF Engineers, Mercados • SACE
• Lockton
• 5 Capital Aries International, DWPF, AON, INDECS • CESCE

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MENA renewables wind


Genesis Wind Farm

Israeli power developer Enlight Renewable


Energies overcame numerous delays, global
economic turmoil, the Covid-19 pandemic
and issues with the ministry of defence
to win this year’s IJGlobal award for wind
energy in the Middle East and North Africa.
Enlight reached financial close on its
NIS1.2 billion ($333.5 million), 189MW
Genesis Wind Farm in mid-April (2020)
marking a crucial milestone for a project that
started life as a 50MW project in 2011.
It had to contend with more than its fair sold through a 20-year PPA to the Israel certainty that the project will be completed”.
share of challenges that included delays Electric Corporation (IEC) and sponsor Finally, financial close was achieved in April.
prompted by the Israeli Ministry of Defence revenues are expected to be as high as While enduring these numerous hurdles,
(MoD) over disruption concerns for a nearby NIS160 million ($44.5 million) annually. the installed power capacity of the project
radar system. The Bank Hapoalim-led lender team was increased – partly by necessity from
The shareholders of the SPV are Enlight signed MoUs with the sponsors in July interventions by the MoD – from 50MW to
Renewable Energies (60%) and Aviram 2019, not long after the High Court of 130MW and finally to 189MW.
Group (40%) and the project financing is Justice rejected a petition from the Society Genesis wind farm is expected to begin
heavily geared towards the debt-side with for the Protection of Nature in Israel to delay commercial operations by the end of 2022.
a gearing of 87:13. Lenders on the NIS1.05 the project due to wildlife concerns.
billion ($291 million) debt package are Bank The project required further approvals and
Hapoalim (mandated lead arranger), Migdal despite receiving approval from the National Advisers
Insurance Company and Amitim Pension Infrastructure Committee in July 2018, • Herzog Fox & Neeman
Fund. Enlight said in a December 2018 release • Meiter
The tenor on the debt is 19 years plus – at this stage awaiting approval from the • Tractebel
two years for construction. Energy will be National Housing Cabinet – that “there is no

MENA water desalination


Jubail 3A
The Middle East and North African water equity bridge loan commitments for the
desalination award has been won by Jubail project during challenging times, sponsors
3A – a significant IWP project in the eastern also placed hedges for both senior debt
province of Saudi Arabia with a 600,000 and equity bridge loan. The senior debt was
metres per day reverse osmosis capacity. arranged in the form of Istisnaa-Ijara Islamic
The IWP split from Jubail 3 IWP in May structure for $95 million, Wakala-Ijara Islamic
2019 and the sponsors signed with Saudi structure of $220 million, conventional soft
Water Partnership Company (SWPC) a mini-perm structure of $166 million. The
25-year water purchase agreement (WPA) $66 million EBL was also structured on an
with a tariff of SR1.54861/m3 ($0.412963) Islamic basis.
in April (2020), following project award the
month before.
The project is the first to be awarded Advisers
under SWPC’s seven-year statement plan • Alderbrook
that aims to reduce the level of water stress commission, operate and maintain the • Banque Saudi Fransi
in the kingdom through the development desalination plant as well as associated • Synergy Consulting
of an additional 5.5 m³/day of desalination potable water storage and electrical special • KPMG
capacity up to 2024. It will be one of the facilities. • DLA Piper
largest privately-owned desalination plants Beyond achieving the lowest tariff level • Covington & Burling
in the world and will greatly contribute to for closed water projects in the region, the • Norton Rose Fulbright
Saudi water security efforts. project set a benchmark for procurement • Hogan Lovells
The 25-year WPA was signed with SWPC timeline, successfully navigating challenges • Fichtner
by a consortium led by ACWA Power, imposed by the Covid-19 lockdown. • Atkins
working in partnership with Gulf Investment The project secured debt funding • Afry
Corporation (GIC) and Al Bawani Water & commitments from a diverse group of • Indecs Consulting
Power Company (AWP). lenders – Al Rajhi Bank, Riyad Bank, Abu • Deloitte
Under the terms of the partnership, Dhabi Islamic Bank and Mizuho Bank. In • Marsh
the consortium will design, construct, addition to securing the total debt and

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MENA social infrastructure


Noor Abu Dhabi LED Streetlighting Phase 1 PPP

When it comes to social infrastructure ADM is expecting cost savings of up to


transactions, there are few that can boast Dh264 million ($71.9 million) and at least
the simplicity of street lighting projects enough energy savings to power 8,000
while concurrently celebrating immediate homes.
environmental and financial gains. The project was so successful that
To this end, it was a shoo-in for Abu in October (2020), the Department of
Dhabi to win the social infrastructure award Municipalities and Transport (DMT) through
for having brought to market and closed Abu Dhabi City Municipality (ADM) and
the first phase of Noor Abu Dhabi LED the Abu Dhabi Investment Office launched
Streetlighting PPP. Phase 2 of Noor Abu Dhabi.
Abu Dhabi City Municipality (ADM) in The new PPP project is more than three
August 2020 reached financial close with times the size of Phase 1 and will result in
local developer Tatweer on the DBFOM significant electricity savings of almost 2,400
contract for a street lighting replacement million kWh, a reduction of some 76% in
project for traffic assets and systems model to support and invest in new infra in power consumption… which is equivalent to
operation and management. The tender was the emirate. cost savings of AED705 million, throughout
conducted by the Abu Dhabi Investments The project is financed with a gearing of the 12-year concession agreement.
Office (ADIO). 80:20 as per requirements in the project
Tatweer is charged with replacing at documents.
least 43,000 streetlights in Abu Dhabi Tatweer will install and maintain a smart
with energy-efficient LEDs, which are central system to control the new LEDs
throughout the 12-year concession period Advisers
being supplied by Italian lighting firm AEC
Illuminazione. of the DBFOM contract with energy saving • Allen & Overy
ADM launched the project procurement targets set by the ADM, which in turn will • Synergy Consulting
process in January 2018. ADIO says it was pay the concessionaire on a formula based
on actual energy use as measured by the • Parsons Corporation
structured as a public-private partnership
through its Dh10 billion ($2.7 billion) PPP smart central system.

MENA Water Wastewater


Umm al Hayman
Every bit as important as the provision of
potable water in the Middle East and North
Africa is the treatment of wastewater and
Umm al Hayman (UAH) is an excellent
example of this.
UAH reached financial close in July 2020
and involves the construction of the plant
within the boundaries of the current Umm
Al Hayman purification plant located 50km
south of Kuwait City. Kuwait and to supply agriculture and International Financial Advisors (IFA) and
The plant will treat wastewater with an industry with process water. WTE will deliver WTE Wassertechnik on behalf of the
initial capacity of 500,000 cubic meters a complete package from wastewater Ministry of Public Works Kuwait ensures the
of average daily flow. It also includes the collection, treatment, and distribution to expansion of advanced infrastructure and
construction of sewage and treated water energy generation, composting and plant sustainability-oriented areas in the region.
lines from Egailah pumping station to the operation – as a one-stop solution.
new station, 300 sewage rising mains and WTE is the general contractor
68 ground reservoirs, together with a major responsible for design and construction Advisers
power transformer station. of UAH with a contract value of around • HSBC
The new sewage treatment plant can €600 million as well as – together with • KPMG
further expand by 200,000 cubic meters partners – a sewer network with pumping • Norton Rose Fulbright
per day, ultimately reaching a final stations (contract value €950 million). With • Hogan Lovells
capacity of 700,000 cubic meters per a construction volume of just under €1.6 • Covington & Burling
day. The project is split into two parts, one billion (excluding financing and operating • ASAR Legal
developed on a BOT basis and the second costs), this is considered one of the world’s • Al Bader Law Office
is DBO. most complex water projects. • Al Tamini
UAH is one of the world’s largest It involves a complex financing structure • Fichtner
wastewater projects and is being built to and is one of the largest PPP projects • Mazars
dispose of the wastewater from southern in the Middle East. The consortium of

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IJGlobal Awards 2020 Africa winning deals

2020

Africa winners
This last year – 2020 – saw perhaps Winners in the African transaction category are:
the most diverse range of infrastructure • Editor’s Choice Africa – Atinkou CCG
and energy awards to win prizes ever in
the IJGlobal Awards’ history. • African mining – Tasiast Gold Mine Financing
Sadly we were not able to include
• African oil & gas – Nigeria LNG Train 7
Mozambique LNG as it did not actu-
ally reach financial close until spring • African transport – BeitBridge Border Post Modernisation Project
2021 – though it was entered by many • African refinancing renewables – Bokpoort CSP
companies – but we are confident it will • African power – Azito Phase IV Project
make an appearance in our next award!
• African renewables portfolio – Financing of 7 Solar Projects in Angola/
The breadth of projects closed demon-
Angola Solar PV
strates something many in the infra
know well – Africa is open for business. • African battery storage – Golomoti Solar PV and Battery Energy
Storage Project
Congratulations to all the winners. • African digital infrastructure – Project Lightning
• African social infrastructure – Cote d’Ivoire Hospital & Medical Units
Portfolio
• African export finance – SGR Financing
• African Refinancing Mining – Resolute

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2020

Editor’s Choice Africa –


Atinkou CCGT
IJGlobal editorial director Angus Leslie Melville joins forces with MEA reporter James Hebert
to single out the Editor’s Choice Award for Africa – the 390MW Atinkou CCGT in Côte d’Ivoire

There are few developments in the global where only 66% of the population have François-Guilhem Vaissier
infrastructure and energy sector that get access to electricity (2017 stats). By using
the juices of an infra hack flowing more combined-cycle turbine technology, the
than financial closes in Africa. For years plant will substantially contribute to reducing
people have been hailing the continent as Côte d’Ivoire’s generation costs and GHG
one of the true regions for growth – on a emissions, in part, through the displacement
country-by-country basis, they caveat – with of older generation units.
an exciting array of developments and This is a key development for the nation,
ambitions on the drawing board. beyond providing baseload energy, it helps
Energy (in all its many guises) tends to set Côte d’Ivoire on the path to transitioning
top most folks’ lists when it comes to Sub its energy sources – ticking a nice ESG
Saharan Africa and IJGlobal MEA hand – box – by providing stability in electricity
James Hebert – is very much of that mind generation as more intermittent renewable
in choosing the regional IJGlobal Editor’s energy sources are developed in the nation.
Choice Award, singling out for honours the
Atinkou combined-cycle, gas-fired power IFC to the fore
plant in Jacqueville some 40km west of As lead arranger and overall coordinator,
Abidjan, Côte d’Ivoire. the IFC negotiated all the debt financing.
This project relates to the development Atinkou worked closely with the IFC to pull
and operation for 20 years of a 390MW together an impressive line-up of DFIs to
natural gas-fired power plant using highly finance this greenfield power project. "I was very proud to advise
efficient combined-cycle turbine technology, This work proved so successful that the Eranove and Atinkou on this
increasing production and improving energy World Bank member was able to scale
back its ticket from the €120 million it had
landmark transaction that will
supply in Côte d’Ivoire.
The sponsor of the project is Eranove committed, to the €91 million it contributed generate more than 350MW
– a pan-African company active in the to the overall €303 million debt package. following completion of the
management of public services and The IFC’s success was so complete that
production of electricity and drinking by the time this deal made it to financial works."
water – created the Atinkou company close – 26 March 2020 – it was not even
for the implementation of this important the biggest ticket holder as the African
development project. Development Bank came in for €100
The new Atinkou power plant will boost million. The remaining debt was provided DEG, FMO, the OPEC Fund for International
power generation and supply in a country by The Emerging Africa Infrastructure Fund, Development and Attijariwafa Bank.
Eranove is majority-owned by ECP Power
and Water Holding (France) with a 53%
shareholding; followed by AXA with 18%;
Eranove employees with 15%; a group of
African private investors holding 9%; and
the Caisse Nationale de Prévoyance Sociale
(CNPS) of Côte d’Ivoire on 5%. It deployed
€101 million in equity to give the financing
a very respectable 75:25 gearing.
There was a highly-respected line-up of
advisers on this deal with White & Case
acting as Atinkou’s international legal
counsel led by partners François-Guilhem
Vaissier (project documentation) and
Paule Biensan (financing documentation).
Vincent Le Guennou, co-chief executive of Emerging Atinkou’s Ivorian legal counsel was C2A, led
Capital Partners (left) and Marc Albérola MD of Eranove by Pierre Djédjé.

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2020

Clifford Chance acted as the lenders’ Karim Amin, executive vice president Linda Rudo Munyengeterwa
international legal counsel, fronted by Paris- of Siemens Energy’s generation division
based partner Delphine Siino Courtin, while said: “Supported by our state-of-the-art
their local law firm was Cabinet Chauveau & technology and services, this power plant
Associés with Tanneguy Cazin d’Honincthun will be the most efficient natural gas fired
taking the lead. Willis was insurance adviser power plant in Côte d’Ivoire and in the
to the lenders while WSP supported it on region. It will help to reduce the area’s
technical issues. carbon footprint from power generation and
The contractor is TSK Electronica y support Côte d’Ivoire in its efforts to become
Electricidad while Siemens is supplying a regional energy hub.”
the turbine and long-term service function. For Eranove’s side, this deal cements its
Ramboll was environmental and social position as the key player in Ivorian energy
adviser, supported by Deloitte as financial generation as it also owns and operates the
model auditor. 544MW CIPREL project in Vridi, near the
town of Port-Bouët. It is the largest power
A project with impact plant in Côte d’Ivoire.
This power plant will provide Côte d’Ivoire Marc Albérola, chief executive of the pan-
with stable base load electricity to support African industrial group Eranove, said: “The
economic growth and the development of Atinkou power plant will produce electricity
intermittent renewable energy generation for thousands of homes and industries to
– playing a key role in the national energy meet national and regional electricity needs
transition. generated by strong economic growth.” "Once built, Atinkou will
On the clean energy front, it is a clear step As is the case with many deals in Africa
in the right direction as it replaces older, less the involvement of DFIs was essential to
provide affordable power to
efficient power plants in Côte d’Ivoire which get it over the line – though hopefully we thousands of homes and
will now be retired. Further, it is roughly 50% will soon be moving to a position where businesses, while helping
more efficient than the older plants. the role of such organisations morphs into
Siemens Energy’s scope of supply playing the role of “crowding in” rather than Côte d’Ivoire meet its goal
includes one SGT5-4000F gas turbine dominating the market. of transitioning to greener
and one SST5-3000 steam turbine, each Linda Rudo Munyengeterwa, IFC’s
along with a generator, condenser and an regional industry director for infrastructure
electricity production."
SPPA-T3000 control system. Additionally, and natural resources (MEA), said at
a comprehensive 12-year long-term financial close: “Once built, Atinkou will
service agreement (LTSA) has been signed provide affordable power to thousands of
between Atinkou and Siemens Energy. homes and businesses, while helping Côte Given the strong market position that
The SGT5-4000F gas turbine provides d’Ivoire meet its goal of transitioning to Eranove has established in Côte d’Ivoire, it is
high performance, low power generation greener electricity production. likely that the power company will continue
costs, long intervals between inspections, “IFC’s investment in the project is a to build on this in years to come in a nation
and a service-friendly design. Optimized testimony to IFC’s longstanding commitment that is keen to evolve its grid connectivity.
flow and cooling add up to high gas turbine to Côte d’Ivoire’s power sector, which began Marc Albérola adds: “The Atinkou plant
efficiency and economical power generation in 1994, when our partnership with CIPREL demonstrates the strength of Eranove’s
in combined cycle applications. began.” industrial model based on African skills and
public and private partnerships involving
the state and local players. Atinkou also
Siemens Energy’s scope of supply includes one SGT5-4000F
gas turbine and one SST5-3000 steam turbine confirms Eranove’s leading position as
an independent producer and delegated
manager of public services.”
François-Guilhem Vaissier, White & Case
partner, says: “I was very proud to advise
Eranove and Atinkou on this landmark
transaction that will generate more than
350MW following completion of the works.
“On the basis of CIPREL numerous
successes, we started back in 2016 with the
negotiation of a MoU with the state of Côte
d’Ivoire. Then the Convention de Production
was executed in December 2018. Following
this initial phase, we assisted Eranove and
Atinkou’s dedicated teams on all related
agreements including the financing,
construction and technical services ones.”
And all that hard work came to a
successful conclusion when it reached
financial close on 26 March 2020 and is a
feather in the cap to all parties involved.

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African mining
Tasiast Gold Mine Financing
Kinross Gold Corporation achieved financial package that was developed with local says that based on the feasibility study,
close on the expansion of its open-pit counsel in response to the unique legal the expansion is expected to increase
Tasiast Gold Mine asset in north-western and regulatory challenges associated with production, reduce costs, and extend mine
Mauritania on the back of a multi-source the creation, perfection and enforcement of life to 2033.
project financing featuring both state- collateral security in Mauritania.
backed lenders and commercial banks. The deal also represents the IFC’s largest
The debt financing was led by ever investment in Mauritania at $63 million Advisers
International Finance Corporation (IFC) and A loan and a further $93 million through IFC
the Export Development Canada (EDC). On trust loans. The World Bank Group member • HCF International Advisers
the back of this DFI and ECA support (the considers the project to be aligned with the • Milbank
original senior lenders), two commercial government of Mauritania’s development
banks joined the fray – ING Group and agenda. • Sullivan & Cromwell
Societe Generale. ING and Societe Generale provided a • Maître Yarba Ould Ahmed Saleh
The loan facilities carry an eight-year tenor combined $70 million through syndicated
• Avaconseil
and are non-recourse to Kinross and have a IFC B loans while the EDC was in the for
weighted average floating interest rate – the the remaining $75 million. Overall, the $300 • Herbert Smith Freehills
debt pricing is 438bp above Libor. It also million debt package serves to part-fund a • De Pardieu Brocas Maffei
features an extended availability period and $822 million expansion of the mine.
permits an unlimited number of drawdowns The project financing will fund an • Loyens & Loeff
to provide the Tasiast SPV with flexibility to expansion of the operations of the Tasiast • NautaDutilh
meet its operational funding needs. gold mine, together with all associated
• Pestalozzi Attorneys at Law
These conditions were set out in a facilities and infrastructure. The production-
Common Terms Agreement that states side is expected to incrementally increase • Homburger
the terms common to all senior debt, all of throughput capacity to 21,000 tonnes per • RPMGlobal USA
which ranks equally and shares pari passu day by the end of 2021 and then 24,000
in a multi-jurisdictional common security tonnes per day by mid-2023. Kinross

African oil & gas


Nigeria LNG Train 7
The $3 billion project financing of the between the sponsors and the SCD Group
Nigeria LNG Train 7 was one of the Train 7 demonstrated the will included flexibility for NLNG to enable an
headline acts in 2020 in a year packed accelerated works schedule.
with multibillion-dollar African infrastructure of international institutions to Train 7 will expand the company’s
deals. respond to the ever-growing LNG production by 35%. Currently six
Its complex financing marked the first LNG trains produce an annual total of
time that the development of an LNG
global demand for LNG. 22 million tonnes, expected to rise to 30
project was financed using a multi-sourced million tonnes when Train 7 is in operation.
corporate loan structure. Overall, the Pricing starts at 375bp above Libor and The biggest shareholder in NLNG is the
financing of Train 7 demonstrated the will the nine-year tenor on the debt includes a Nigerian National Petroleum Corporation,
of international institutions to respond to four-year availability drawdown period and a but the other sponsors are Shell,
the ever-growing global demand for LNG five-year payback. TotalEnergies, and Eni.
wherever it may be found. The asset will be financed by a
The deal was structured as a hybrid combination of NLNG’s internally generated
corporate finance – it shares features of cashflows and the $3 billion in debt raised Advisers
both corporate and project finance, even from two development finance institutions
though it fits more towards the corporate (DFIs) including the Africa Finance • SMBC
end of the finance spectrum. Regardless Corporation (AFC) and 26 international and • Guaranty Trust Bank
of the classification, from a bankability local banks, including Standard Chartered
perspective the overall risk assessment Bank. • Allen & Overy
was similar. Lenders took a confident view The fact that the enormous deal closed • White & Case
of the deal from NLNG’s operational and in spite of the ongoing Covid-19 pandemic
• Olaniwan Ajayi
finance record and its robust credit history. is not exclusive to Train 7 – as mentioned
Half of the multi-tranche debt package there were several other big deals such as • Templars
is covered by ECAs including the Export- in Cairo and Mozambique that achieved • Operis
Import Bank of Korea (KEXIM), Korea Trade significant financing milestones during
Insurance Corporation (KSURE), and SACE. 2020. However, the EPC contract signed

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IJGlobal Awards 2020 Africa
2020

African refinancing renewables African power African renewables portfolio


Bokpoort CSP Azito Phase IV Project Financing of 7 Solar Projects in
Angola/Angola Solar PV
ACWA Power reached financial close on a
December 2020 refinancing of the 50MW The award for African Renewables Portfolio
Bokpoort concentrated solar power (CSP) Financing deal of the year has been won by
project. It became the first REIPPP project a consortium of MCA Group, Hitachi ABB
in South Africa to be refinanced, thereby Power Grids and Sun Africa, among others,
leading to a reduced tariff for the end- for their 370MW solar PV complex in Angola.
consumer. Globeleq managed to attract a total of nine Comprised of seven generation
Bokpoort CSP was a part of the South DFIs for the debt financing of Azito Phase facilities, the project will be located in the
African government’s early REIPPP IV expansion in Côte d’Ivoire – enabling municipalities of Biópio, Benguela, Bailundo,
programme that made it to financial close the addition of 253MW of installed power Cuito, Lucapa, Luena and Saurimo.
in July 2013. The Department of Mineral capacity at the 462MW Azito CCGT. The Angolan portfolio won for the overall
Resources and Energy (DMRE) launched a The 2020 financial close of the $331 impact it will have on electrification rates in
refinancing initiative in October 2019 as part million deal took place eight years after the the country, using a reliable and affordable
of a wider goal to reduce the cost of energy last phased expansion of the asset. The new clean energy source. The Angolan
in the country, thus reducing financial expansion not only saw every one of the government took into consideration the lower
obligations for national utility Eskom. lending DFIs from back then but also brought cost of solar energy compared to diesel, which
In May 2020, the DMRE invited all IPPs in a new multilateral. The DFI list was also contributed to the project being considered a
that took part in rounds 1 to 3.5 of REIPPP complemented yet again by a local currency viable long-term investment for the country.
to refinance their project debt. The approval tranche from the West Africa Development These seven assets in fact represent
for the refinancing was then granted by Bank (BOAD) at CFAfr22.851 million ($42.6m). Angola’s debut in the field of solar energy.
the government following a consultation The project was financed on a limited They were made an integral part of the
with both IPPs and lenders. By this stage, recourse basis. The overall size of the debt country’s 2025 Energy Plan, which sets out
the Covid-19 pandemic was causing adds up to €264 million debt and the new to boost electricity access rates, especially
severe volatility in the international financial lender to join the IFC and European DFIs is in rural communities.
markets. the African Development Bank (AfDB). There This portfolio is expected to be
Nonetheless, Bokpoort CSP became the is a 15.5-year tenor and MIGA provided debt responsible for covering nearly 50% of
first REIPPP project to carry out a successful coverage for the Euro-denominated tranche. Angola’s 2025 target for installed renewable
refi, backed by a consortium of six lenders DFIs also provide a strong backing on the capacity. The expected generation capacity
including Rand Merchant Bank which acted equity-side, which injected a further €67 of each project ranges from 7MWdc to
as co-MLA. The Jibar-linked and senior million into the project financing. Globeleq 189MWdc. Two of the plants will supply the
CPI-linked term facilities increase the overall is majority owner of the Azito Energie SPV, national electricity grid, while the other five
debt package from R3.5 billion to R5.5 alongside Industrial Promotion Services. will directly serve rural areas.
billion ($254 to $399 million). Globeleq is owned by CDC Group and “The solar power plants will be built within
The refinancing reinforces the success Norfund, while IPS is owned by the Aga two-and-a-half years and 1 million panels
of IPPs under the REIPPP programme Khan Fund for Economic Development will produce 370MW, enough to power 2.4
specifically and PPPs and concession (AKFED) and IFC, alongside the government million people in areas without access to
projects more generally, in the South African of Côte d’Ivoire. Both CDC and AKFED took electricity” MCA Group said at the time of
market at a time when the government lead roles in the fourth phase financing. financial close.
has constrained fiscal space, and therefore In line with the greatly extended shelf The Ministry of Finance of Angola
needs to crowd in the private sector through life, a new PPA was signed to amend the secured €647 million in financing for the
projects such as these in order to roll out existing one in March 2019, putting it to development and construction of the
new infrastructure and stimulate economic 20 years. A source told IJGlobal at the time portfolio. The transaction was majority-
growth. The refi also reached financial close of the offtake signing that the new tariff financed via a €567 million export credit
during the pandemic, thereby reinforcing the is beaten only by hydropower in the West facility by the Swedish Export Credit
strength of the project financing. African region. Corporation (SEK), with the Swedish Export
The lowered tariff will result in savings, The fourth phase builds on the CCGT Credit Agency (EKN) as guarantor.
estimated at around R800 million over conversion resulting from the third phase, A further €80 million was lent by the
the remaining 13 years of the PPA. The coupling gas turbines and stream turbines Development Bank of Southern Africa
reduction of the tariff charged to Eskom is with a generator. At 715MW, Azito will (DBSA). ING Bank acted as arranger on
3.2%. Moreover, in October 2020 the project provide at least 30% of Côte d’Ivoire’s power both tranches and as financial adviser. The
completed 13 days of continuous round- generation, up from 25%. It will become one loans extend over a long term – 18 years
the-clock operation which set a continent- of the largest privately-run power projects in – and the estimated construction period is
wide record for CSP. Sub-Saharan Africa. two years.

Advisers
Advisers Advisers
• Fasken Clifford Chance, Orrick, Fideis Legal, • ING Bank
• Mott McDonald Asafo & Co, Chauveau, WSP, BDO, FDKA, • Clifford Chance
• Deloitte Leue & Alesco, Indecs Consulting • Norton Rose Fulbright

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IJGlobal Awards 2020 Africa
2020

African transport
BeitBridge Border Post Modernisation Project
The $300 million BeitBridge Border Post The financing package includes a through the border can currently take 2
Modernisation Project closed in November, $130m commercial debt tranche from days or more, with this project it will take a
concluding financing for the upgrade and ABSA Bank, Nedbank, RMB and Standard fraction of that time. It delivers infrastructure
rehabilitation of the Zimbabwean side of the Bank with political and commercial risk that makes a difference by not only
border post, under a 17.5-year concession. cover provided by the Export Credit stimulating sustainable economic growth
It is the busiest border post in southern Insurance Corporation of South Africa, and job creation but by also providing
Africa, connecting South Africa to Zimbabwe alongside a $65m DFI tranche funded much-needed social infrastructure to the
and providing a key access point for trade by Afreximbank and the Emerging Africa local community.”
with countries further to the north. Infrastructure Fund and a US$22m loan
Under the concession, La Frontiere from EAIF as well.
is tasked with upgrading the ageing Daniel Zinman, RMB project lead for
infrastructure, which for some time has BeitBridge, says: “This project comes at Advisers
caused significant waiting periods at the a time when infrastructure development
border, slowing trade and causing many and PPPs are more critical than ever to • RMB
haulage operators to use less-efficient stimulate economic growth, and further • EY
alternative routes. enhances RMB’s reputation as the leading
The concession also requires the delivery investment bank in the African concessions • Herbert Smith Freehills
of social infrastructure to the adjacent town and PPP sector, through the provision • Bowman Gilfillan
of Beitbridge, including a water treatment of an end-to-end infrastructure finance
plant, housing and fire station. solution which enables our client to deliver • Mott MacDonald
RMB was financial adviser to the this landmark infrastructure development,
• Aurecon
sponsor from 2018, helping structure a despite a challenging jurisdiction and
bankable project financing and bring in an unprecedented and uncertain global • AON
co-shareholders like the Pembani-Remgro backdrop.”
• Willis Towers Watson
Infrastructure Fund and the Pan African Judy Cobus, co-head RMB Infrastructure
Infrastructure Development Fund. Sector Solutions, adds: “A truck moving

African battery storage


Golomoti Solar PV and Battery Energy Storage Project

The award for African Battery Storage deal the projects and was an ideal solution to project has received from the Government
of the year has been won by JCM and Covid-19 restrictions. of Malawi, regulators and the state utility,
InfraCo Africa for the 20MWac Golomoti Moreover, it reduced development ESCOM. By generating additional power and
project in Malawi. timelines and costs, and introduced a high pioneering energy storage, Golomoti Solar
Golomoti won for the storage component degree of flexibility in negotiating with will ensure that homes and businesses in
of this solar PV project which is billed as equipment providers in a turbulent pricing Malawi will have access to more reliable
the first utility-scale grid-connected PV plant and supply market. The operations will also electricity to drive economic growth.”
in sub-Saharan Africa to include a battery be self-performed by the project.
energy storage system (BESS). The project incorporates a state-of-the-
JCM and InfraCo Africa were selected as art 5MW/10MWh lithium-ion BESS which
preferred bidder for the Golomoti project will enable the plant to provide reliable Advisers
in 2017 and accelerated development of power and improve network stability,
the project through committing to an equity reducing reliance on hydro and diesel • Innovate UK
financing structure prior to construction. This generation, while ensuring that grid stability • Norton Rose Fulbright
significantly de-risked the project for lenders is maintained.
who were expected to provide financing This is of particular importance as • Eversheds Sutherland
after the project entered commercial Malawi currently has an islanded power
• Mott MacDonald
operations. network and the BESS will demonstrate the
Rather than engaging a single turnkey pathway for increasing the contribution of • RINA
EPC contract, the project is being delivered variable renewable energy on the network.
• Zutari
through individual contracts with JCM Performance data from the BESS will inform
managing contracts with equipment similar systems elsewhere in the region. • Power Engineers
suppliers and works contractors. This InfraCo Africa chief executive Gilles
structure allows for a much more localized Vaes said: “This key milestone has been • ERM
delivery and provides flexibility to deliver made possible by the strong support the

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IJGlobal Awards 2020 Africa
2020

African digital infrastructure


Project Lightning
The transaction to have won the IJGlobal MFN has an ambitious programme to shares held in trust and drawn down over a
African Digital Infrastructure Award was address this shortfall, through a ZAR3 billion period of 2.5 years.
Project Lightning – the financing of an plan to connect an additional 300,000 The structure provided full governance
acquisition of a stake in MetroFibre Networx homes across the country over the coming rights to shareholders for both the shares
(MFN), South Africa. three years. It was in need of funding to issued and those held in trust, but limits
Having closed on 17 November 2020, execute the plan as the majority of existing the cash drag for both MFN and investors
this deal saw South African infra fund shareholders were capped out from an by only drawing down capital as required,
manager AIIM acquire a minority stake investment perspective. In addition, it was providing a material “war chest” for MFN to
worth R980 million ($63.6m) in local open essential that any new equity sourced, continue to rollout the network.
access fibre network operator MFN, as part maintain or enhance required equity
of the company’s R1.5 billion ($97.2m) ownership for Historically Disadvantaged
equity funding round. Groups (HDG).
Advisers
This deal stands out as despite material MFN’s high-growth stage of life provided
investment in recent years to the FTTH funding challenges however, including the • Bowmans
and FTTB sectors, there continues to material near-term capital requirements,
be a significant deficit in last-mile fibre coupled with limited cashflows available • Webber Wentzel
connectivity in second-tier towns across for distribution in early years, thus limiting • Hardiman Telecoms
South Africa. appetite for preference share funding from
Fibre networks are increasingly important the more traditional lenders. Therefore, an • PwC
for fast and reliable home internet and to innovative funding solution was required. • Camp Consult
support the acceleration of learning-from- As a result, the rights issue was
home and working-from-home, as well as structured as an irrevocable undertaking for • Marsh Insurance
the ongoing digital migration of transactional subscribers to provide funding when called
and enterprise environments. upon by the MFN board, with the remaining

African social infrastructure


Cote d’Ivoire Hospital & Medical Units Portfolio

The award for African Social Infrastructure


Health deal of the year has been won by
Agentis for its involvement in a Côte d’Ivoire
hospital and medical units portfolio. The
project won thanks to its positive impact on
healthcare access in the country.
Following a long period of
underinvestment, Cote d’Ivoire was facing
significant infrastructure deficiencies in the
health sector. Some 33% of the population
was living more than 5km away from a
healthcare facility and around 10% more
than 15km away.
To alleviate this situation, the government
devised a 2-year (2018-2020) €1.27 As an additional activity within the surrounding them. The project will facilitate
billion financing plan for the construction of project’s scope, five new medical units in intra-OIC trade of services and human
regional hospitals and national healthcare five hospitals across the country will also capital between Côte d’Ivoire and Morocco,
facilities, as well as modernisation and re- receive funding. They include a radiotherapy both Member Countries of OIC.
equipment of existing ones. centre in Abengourou, an emergency The project also received support from
Consisting of two hospitals, one located unit each in Daoukro and Séguéla, a the Islamic Corporation for the Insurance
in Adzopé (105km north of Abidjan) and the traumatology centre in Toumodi, and a of Investment and Export Credit (ICIEC).
other in Aboisso (120km east of Abidjan), surgery and emergency unit in Bouna. ICIEC’s cover provided credit enhancement
the project initiated by the Côte d’Ivoire The project is part of the government’s to Deutsche Bank which extended long-
government with Moroccan company National Development Plan 2016-2020. It term financing to the project.
Agentis as EPC contractor, will have a total will also support the Republic’s ongoing
capacity of around 400 beds. It is expected efforts to contain the Covid-19 pandemic.
to significantly improve the availability of The two hospitals will employ around 600 Advisers
healthcare services in each region using local people and will foster the development • Ashurst
state-of-the-art equipment. of a micro-economy in the areas

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IJGlobal Awards 2020 Africa
2020

African export finance


SGR Financing

The winner of the IJGlobal Award for African


Export Finance is the SRG Financing in
Tanzania, a transaction for the standard
gauge railway (SGR) Phases 1 and 2 that
signed in early 2020.
This award is primarily to celebrate the
largest syndicated transaction in Sub-
Saharan Africa to date outside the oil and
gas sector, but – more importantly – it has
positively changed the accepted norms
on how such deals are structured, how
risks are managed effectively, and how to
balance economic, social and environmental
objectives.
Standard Chartered Bank acted as the (Switzerland), OeKB (Austria), SACE (Italy), The SGR is Tanzania’s biggest
sole global coordinator and structuring CESCE (Spain), NEXI (Japan) reinsuring EKF. infrastructure project and will provide
bank, MLA, bookrunner and facility agent The financing comprised a $992.9 million essential, safe and reliable rail connectivity
to arrange a $1.6 billion financing package EKF covered term loan facility; a $270 between capital Dodoma (Makutupora),
for the Government of United Republic of million commercial term loan facility; a Morogoro and Dar es Salaam. The lots 1
Tanzania, which was successfully signed on $200 million DFI facility; and a $178.2 EKN & 2 extend 550km, while subsequent lots
13 February 2020 covered term loan facility. The EKF facility will extend the SGR to 1,224kms, linking
The ECA-led, long-term financing to has a tenor of 14.5 years, as does the EKN Tanzania with Rwanda, Uganda and the
fund the new SGR from Dar Es Salaam facility. The DFI facility weighed in at 15 Democratic Republic of Congo.
to Dodoma (Makutupora) helped attract years, while the commercial facility was for
investors from other liquidity pools, leading 7 years.
to the creation of a commercial bank The project brings enormous benefits to
tranche; and the development financial the people of Tanzania and its neighbours. Advisers
institution (DFI) tranche. Freight costs are to reduce by 40%, while
• Baker McKenzie
SCB implemented the re-insuring structure every electric train takes 500 lorries off the
in which it identified EKN and EKF as the roads, significantly cutting pollution and • Arup
fronting ECA – and other ECAs: SERV congestion.

African Refinancing Mining


Resolute
The award for African Mining Refinance deal services undertaken by an established of the Gambia River where multiple soil
of the year has been granted to Resolute contractor. anomalies have been identified.
Mining for the refi of the Mako gold mine in The carbon in each processing plant On 25 March 2020, Resolute refinanced
Senegal. has 2.3Mtpa of capacity and comprises a its existing debt facilities with an increased
The project won thanks to the sponsor’s crushing circuit, an 8.5MW SAG Mill and $300 million facility. This new facility
involvement in a viable mining project with gold extraction circuit. The processing plant comprises a 3-year $150 million revolving
significant impact in Senegal and the region. has achieved strong metallurgical recoveries credit facility and a 4-year $150 million term
The Mako Gold Mine, located in eastern – 95% in its first year of operation – and loan.
Senegal, West Africa, is a high quality, is expected to deliver average life of mine Two new banks joined the facility –
open pit mine with attractive scale and recoveries of 93.8%. Electricity is provided Societe Generale and ING – in addition to
strong growth potential through near-mine by a 14MW diesel-fuelled power station and the existing/returning lenders: BNP Paribas,
exploration opportunities. water is extracted from the Gambia River. Nedbank, Investec and Citibank.
The first gold was poured at Mako in Identified exploration targets have the
January 2018. potential to increase the mine life and
Mako is owned and operated by exploration programmes are in progress Advisers
Resolute’s Senegalese subsidiary, Petowal focusing on pit extensions and satellite
Mining Company SA. Resolute has a 90% deposits within trucking distance of the mill. • Orimco
interest in Petowal and the Government of Targets within the permit include the • Allens
Senegal holds the remaining 10%. identification of potential ore shoots
Mako is a conventional drill and blast, beneath the pit, extensions to the north east • Wright Legal
truck and shovel operation with mining of the pit, and the Kerekonko area south

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Europe case study

Europe
Tenders launched Projects with recent tender updates
1 Sines 4.0 Data Centre
2 South Kavala Gas Storage Facility PPP
Others United Kingdom 3 Acquisition of 30% in ATC Europe
36 projects 33 projects
4 Crete Courthouses PPP
5 Heathrow Southern Rail Link PPP
6 Acquisition of Falbygdens Energi 2021

103
7 VindO Wind Energy Island (3GW)
8 Attica-Crete Interconnector (1GW)

Deals Closed deals by country


Transaction Country Value ($m) Count
1 Italy 13,023 12
Poland Spain 2 Spain 9,341 25
6 projects 12 projects 3 Germany 8,083 13
France 4 United Kingdom 7,991 41
Greece
7 projects
9 projects 5 Germany, Netherlands 2,194 1
6 Poland 1,990 7
7 Romania 1,379 3
Closed deal values by sector 8 France 1,299 7
9 Netherlands 1,154 9
Mining Oil & Gas Power Renewables 10 Ireland 1,079 4
Transaction count 1 Transaction count 5 Transaction count 15 Transaction count 93
11 Czech Republic 1,078 2
12 Denmark, United Kingdom 983 1
13 Cyprus, Malta 940 1
$100 $4,393 $22,908 $10,003 14 Finland 837 8
($m) ($m) ($m) ($m)
15 Sweden 682 7
16 Belgium 443 1
17 Norway 302 4
Social & Defence Telecoms Transport Water 18 Greece 143 2
Transaction count 14 Transaction count 19 Transaction count 10 Transaction count 2
19 Russia 100 1
20 Turkey 77 2

$809 $10,871 $2,564 $580 21 Latvia 61 1


($m) ($m) ($m) ($m) 22 Armenia 53 1
23 Ukraine 30 1

Transactions that reached financial close

4 Mar 5 Mar 10 Mar 15 Mar 30 Mar 31 Mar 29 Apr 24 May

Hornsea I Enel Polimery Police Telefonica Acquisition of Vantage Towers D4 Haje–Mirotice HICL
Offshore Sustainability-Lin Petrochemical German Fiber T-Solar 2021 Bond Facility Section (32KM) Infrastructure
Transmission ked Facility 2021 Complex Optic Network 2021 Reconstruction ESG-Linked
Link (120KM) PPP Refinancing

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Europe case study

Mutkalampi Wind Farm


Finland
Mutkalampi Wind Farm has reached FC – 2 years after the project was developed and quickly
snapped up for PPAs by the likes of Google. IJGlobal assistant editor Anna Cole-Bailey takes a look.

Neoen in April (2021) reached financial since 2016 when it applied for land use Xavier Barbaro
close on the €478 million ($577m) permits.
Mutkalampi Wind Farm – Finland’s largest Its deal with Neoen included the
onshore wind project, with commissioning formation of an 80/20 JV between the 2
set for late 2022. developers – the duo’s second collaboration
The 404MW wind farm is currently under after jointly producing the 81MW Finnish
construction and located on the border Hedet Wind Farm which came online last
between the regions of Central and North year (2020).
Ostrobothnia, western Finland, and has The shareholding on the Mutkalampi wind
been in the pipeline since 2019. farm replicates this split:
Vestas has been signed on to the project • Neoen – 80%
as sole turbine provider and EPC contractor. • Prokon Finland – 20%
The wind farm will comprise 69x turbines:
• 63x turbines with capacity of 6MW In the months ahead, the project sparked
• 6x turbines with a capacity of 4.3MW interest from Google from an offtake
perspective. The tech giant had already
Once operational, the wind farm is expected bought all the power generation from Hedet,
to account for 2% of Finland’s annual and in September 2019 entered into a
electricity production. 10-year PPA with Neoen to buy around one-
Energy produced at the farm is likely to third of Mutkalampi’s output.
be staggered with a first leg scheduled to Goggle’s contract to take 130MW of
open at the end of 2022 and the second in the wind farm’s output starts in 2022 and "Our energy is attractive to
the third quarter of 2023. the energy will be used to power Google’s an increasingly large number
Finnish data centres.
Conception Neoen chief executive and chairman,
and wide range of buyers, in
French renewable energy giant Neoen in Xavier Barbaro, said in 2019: “Our energy particular large businesses
2019 enlisted the services of local legal firm is attractive to an increasingly large number belonging to the RE100 such
Borenius to acquire 80% of a 250MW wind and wide range of buyers, in particular large
farm from Prokon Finland. Prokon’s Finnish businesses belonging to the RE100 such as as Google."
branch had been planning the wind farm Google.”

Vestas has been signed on to the project as sole turbine provider and EPC contractor

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Europe case study

A year later, in December 2020, Neoen corporates continue to make strides towards Carina Radford
confirmed that a further roughly third – decarbonisation as part of the wider energy
126MW – of the wind farm’s output will transition,” he added.
be sold under 10-year virtual PPAs with a
consortium of Dutch offtakers: Financing
• Heineken Neoen confirmed in April (2021) that it had
• Nobian (previously Nouryon) secured financing on the wind farm.
• Philips The lenders are:
• Signify • MEAG – sole senior lender – €290
million
At this point Neoen extended the total • SEB – providing the VAT facility – €38
capacity of the wind project to 404MW – million
securing its status as the largest onshore
wind project in the country. MEAG is a Munich Re company acting on
The electricity contracted to the behalf of primary insurance companies
consortium will be plugged in to the Finnish of ERGO, institutional investors via MEAG
grid, with a guarantee of origin certificate for and several investment funds managed by
the consortium partners to certify that the MEAG, including MEAG Infrastructure Debt
power has been renewably produced. Fund II.
According to the consortium, while the As reported by IJGlobal at the time of "Notwithstanding the
companies have signed PPAs for renewable financial close, Neoen would not disclose
electricity in the past, this is the first time details of the tenor of the debt arranged, but
impressive size of the deal
a virtual PPA has been formed to drive a source within the organisation said it was and the dynamic commercial
“incremental” renewable electricity usage in longer than the PPA horizon – which is 10 arrangements underpinning
Europe. years – as “lenders were comfortable with
The remaining portion of the offtake is assuming merchant exposure in that region”. the financing, the process
being sold on a merchant basis, Neoen has White & Case partner Carina Radford to financial close was pretty
since confirmed. acted for Neoen on the deal. She said: “The
Norton Rose Fulbright EMEA head of deal moved swiftly and efficiently with all
smooth."
energy, Charles Whitney, called the signing parties prepared to align commercially in
of cross-border virtual PPAs “innovative”. short order and financiers showed their in-
“It is a trend that we expect to see more depth knowledge of delivering onshore wind She added: “Notwithstanding the
of in the European corporate PPA market, as farm financings.” impressive size of the deal and the dynamic
commercial arrangements underpinning the
Prokon’s original land use map for the project financing, the process to financial close was
pretty smooth.”
Aside from the financing costs, total
investment in the project now stands at an
estimated €478 million.
Holger Kerzel, member of the board of
management at MEAG, said: “This project
fulfills our high expectations for sustainable
and successful investments. Private
sector financing by MEAG is an important
contribution for the maintenance and
modernisation of infrastructure as well as for
the expansion of renewables.”

Advisers

Advisers to Neoen:
• Voltiq – financial adviser
• White & Case – legal
• Borenius – local legal
• Natural Power – technical
• PwC – tax and model reviewer

Advisers to lenders:
• Norton Rose Fulbright – legal
• Hartford Steam Boiler – technical adviser
to MEAG
• PwC – tax and model reviewer to MEAG

Adviser to Dutch consortium:


• Schneider Electric

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North America case study

North America
Tenders launched Projects with recent tender updates

1 Acquisition of a Stake in First Transit and First Student


Canada
18 projects
2 Contrecoeur New Container Terminal PPP

3 Vineyard Offshore Wind Farm (800MW)

4 AirTrain LaGuardia (3.22KM)

166 Deals
5

6
Eglinton Crosstown LRT West Extension PPP

Acquisition of Inter Pipeline (IPL)

7 Lake Erie Connector (117KM)

United States
8 Scarborough Subway Extension PPP
148 projects

Closed deal values by sector Closed deals by country


Oil & Gas &
Oil & Gas Power Renewables Power Transaction Country Value ($m) Count
Transaction count 10 Transaction count 25 Transaction count 37 Transaction count 1
1 United States 27,155 75

$4,897 $17,364 $4,504 $2,180 2 Bermuda 3,931 2


($m) ($m) ($m) ($m)
3 Canada 236 4

4 Canada, United States 37 1


Social & Defence Transport Water
Transaction count 3 Transaction count 4 Transaction count 2

$1,220 $310 $883


($m) ($m) ($m)

Transactions that reached financial close

1 Mar 4 Mar 11 Mar 11 Mar 30 Mar 16 Apr 26 Apr 27 Apr

Traverse Wind Bull Run Water AES Distributed One Gas Bond New York Thruway Acquisition of Lendlease Acquisition of
Farm (999MW) Filtration Facility Energy US Solar Facility 2021 Service Stations Hygo Energy Privatised Military Equinor's Bakken
WIFIA Loan Portfolio (216MW) PPP Transitions Portfolio Field Assets
Renovation

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North America case study

New York Thruway Service


Stations P3 US
Applegreen reached FC in March on the on the project to develop 27 New York Service Areas on the
New York State Thruway. IJGlobal editor Ila Patel takes a look at the project’s journey.

Irish company Applegreen has been JLIF Holdings (Project Service) was Prior to that, the authority issued a
active in the US market since 2014, slowly acquired by UK-based fund managers request for expressions of interest in April
expanding its foothold in the forecourt retail Equitix and Dalmore as part of its acquisition 2018, inviting those in the hospitality,
space through organic and acquisition- of John Laing Infrastructure Fund (JLIF) in tourism, travel, freight transport and public
driven growth. September 2018. sectors to provide input on operational,
The New York Service Areas project is JLIF had owned the asset since May logistical and environmental components
the second P3 project it has been involved 2016, paying $105 million in equity value to which could be used in the development of
in, the first being the Connecticut Highway buy the project company. the RFP.
Service Plazas P3 in which it acquired a Equitix and Dalmore Capital acquired JLIF Governor Andrew Cuomo also backed the
40% stake in 2019. in its entirety and the fund was de-listed in project and announced it in his 2018 State
Applegreen appears to have a strategy – October 2018. of the State address.
join an existing consortium already involved Similarly, Applegreen joined the Empire In November of the same year (2018), a
in a P3 and then take a majority stake. State Thruway Partners (ESTP) consortium pre-proposal conference was held drawing
The Irish company joined a consortium in September 2020 which until then had a great deal of interest from the industry,
alongside IST3 Investment Foundation and included John Laing. including from Applegreen.
TD Greystone Asset Management to acquire John Laing exited ESTP and Applegreen In June 2019, 5 teams submitted bids:
JLIF Holdings (Project Service) US, the became sole investor and consortium lead, • ESTP led by John Laing
owner of the Connecticut Highway Service but retained the option to add another party • Oaktree Capital Management
Plazas P3, in August 2019. to the team post-financial close. • Macquarie Capital
It acquired its 40% stake for $38 million Adding another company is subject to • Liberty Infrastructure Partners
with the option to increase its share to approval from the New York State Thruway • Star America, Nexus and Drexel Hamilton
60% through a call option agreement with Authority.
TD Greystone, exercisable 5 years after Development plans for the service area
completion of the transaction and giving Procurement include:
Applegreen majority control. The New York State Thruway Authority • making the locations leadership in
IST3 Investment Foundation holds 40% issued an RFP for a developer to DBFOM 27 energy and environmental design (LEED)
and TD Greystone Asset Management has service areas along the 570-mile system in certified
20% in the consortium. October 2018. • installing solar arrays and irrigation-free

The University of Idaho reached financial close on its steam plant and utility system in December 2020

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North America case study

landscaping • Citigroup Global Markets Conclusion


• increasing truck parking and commercial • Loop Capital Markets Service Area P3s are not a burgeoning
services • National Bank of Canada Financial sector in the US, so it cannot be said that
• modernising the entire service area to • Ramirez & Co this is a sub-sector that infrastructure
better serve motorists who travel the • Siebert Williams Shank & Co practitioners should keep an eye out for.
thruway However, there are a few positive examples.
Bank of New York Mellon acted as collateral Connecticut was one of the first rest stop
ESTP was selected as the winning bidder in agent and trustee. P3s, and it was deemed to be relatively low-
September 2019. The bonds are senior, fixed-rate and key and low-risk. Another successful P3 was
Applegreen’s financial plan for the project fully amortized over the term. They have a Maryland’s 35-year lease with Areas USA to
was approved in February 2021 with six-month cash-funded debt service reserve DBFOM 2 travel plazas on the I-95, signed
financial close agreed for 30 March. account (DSRA) with an equity lock up test in 2012. Other states like Georgia expressed
The New York Office of the State of 1.2x. an interest in procuring a similar type of deal
Comptroller and the New York State attorney The debt service profile escalates from but little came of that.
general have also given final approval to the $11 million and reaches $29 million by Of course for New York, this project
project. the end of the term, placing additional makes absolute sense – NYSTA needed to
dependence on revenue growth over time. upgrade 27 plazas and a private partner
Financing The total construction price is $300.7 could do that while also consolidating all the
The deal was financed using $269.46 million with a security package consisting assets to one single provider.
million of PABs rated BBB+ by Fitch Ratings. of: For now, there are currently no other
The rating outlook is stable. The financing • full parent guarantee from AECOM planned service area P3s announced.
package comprised: Technical Services
• $6.88 million – 2.5% Series 2021 Term • 100% payment and performance (P&P) Advisers:
Bonds due 31 October 2021, yield bonds
2.55% • 5% letter of credit and delay liquidated ESTP
• $8.365 million – 4% Series 2021 Term damages (LDs) for each site • Citi – financial
Bonds due 31 October 2021, yield • National Bank of Canada – financial
2.53% ESTP will provide $40.3 million in equity. • Winston & Strawn – legal
• $40.49 million – 4% Series 2021 Term The contract with Empire State is for 33
Bonds due 31 October 2021, yield years, with 2 phases of construction. Phase Underwriters
2.80% 1 includes 16 service areas with staged • Altus Group – LTA
• $64.265 million – 4% Series 2021 Term reconstruction expected to begin in 2021. • Emerton – revenue consultant
Bonds due 31 October 2021, yield Phase 2 includes 11 service areas with • Mayer Brown – counsel
2.95% renovations expected to begin in January
• $149.455 million – 4% Series 2021 Term 2023. Bond
Bonds due 31 October 2021, yield 3% To ensure continuity of services to • Cozen O’Conner
Thruway customers during construction, • Hardwick Law
The issuer is the New York Transportation no 2 consecutive service areas in the
Development Corporation with the same direction of travel will be closed for Disclosure counsel
underwriters comprising: renovations at the same time. • Drohan Lee

Another successful P3 was Maryland’s 35-year lease with Areas USA to DBFOM 2 travel plazas on the I-95

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Latin America case study

Latin America
Tenders launched Projects with recent tender updates
1 Ituango Hydropower Plant (2400MW)
Others
11 projects 2 Kimal - Lo Aguirre HVDC Transmission Line (1500KM)

Route 5 Talca - Chillan Highway Expansion (193KM)


3
PPP
Peru
9 projects Brazil
4 Privatisation of Eletrobras

96
37 projects
5 Amapa's Water and Sewage Services Portfolio PPP

6 Kimal - Lo Aguirre HVDC Transmission Line (1500KM)


Colombia Deals
9 projects Acquisition of 96.04% in Compania General de Elect-
7
ricidad (CGE)

8 Sierra Gorda Solar PV Plant (400MW)

Chile
30 projects
Closed deals by country

Transaction Country Value ($m) Count


Closed deal values by sector 1 Brazil 3,815 22

Oil & Gas Power Renewables Social & Defence 2 Mexico 779 3
Transaction count 2 Transaction count 8 Transaction count 22 Transaction count 2
3 Chile 643 7

4 Colombia 271 5
$278 $381 $2,860 $84
($m) ($m) ($m) ($m)
5 Bolivia, Brazil 150 1

6 El Salvador 128 1
Telecoms Transport Water
Transaction count 3 Transaction count 5 Transaction count 2
7 Paraguay 94 1

8 Peru 39 3
$1,625 $369 $322
($m) ($m) ($m) 9 Uruguay 0 1

Transactions that reached financial close

11 Mar 12 Mar 22 Mar 31 Mar 12 Apr 14 Apr 30 Apr 19 May

BW Tatiana AT&T Acquisition of FS Bioenergy Equatorial Ascenty Brazil Data Port Acu Solar Acquisition of
FSRU Comunicaciones 45% in Igua Green Bond 2021 Energia First Center Portfolio & PV Plant Voltalia's Brazilian
Digitales Saneamento Bond Facility Fiber-Optic Network (1.1GW) Wind Portfolio
Refinancing 2021 Expansion (373.7MW)

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Latin America case study

Gás Natural Açu, Brazil


Port of Açu, located in the municipality of São João da Barra in the North of Rio de Janeiro state, is on its
way to becoming a grandiose industrial complex serving the oil & gas industry. Juliana Ennes reports.
The Port of Açu project was originally that carries tax incentives for individual Euler Hermes covered 95% of the
envisioned by Eike Batista, a Brazilian investors. risk, while KfW acted as an intermediary,
megalomaniac entrepreneur who in just Santander acted as financial adviser on covering the remaining 5% and structuring
a few years went from being the seventh GNA II. the guarantee scheme.
richest man in the world to being arrested The asset followed in the footsteps of If all 4 power plants are built, total
under corruption and market manipulation the first plant built in the complex, which investment is expected at around $5 billion.
allegations. reached FC in March 2019 and mostly This requires not only raising a huge amount
The complex houses Gás Natural Açu raised debt with DFIs. of debt but also puts equity holders under
(GNA), a joint venture currently building However, the second unit had a simpler pressure to invest large sums.
Latin America’s largest gas-fired power park. financial structure as all the cash was With that in mind, on 1 February (2021)
provided by BNDES, eliminating the need to Prumo, BP and Siemens concluded the
GNA has 4 power plants planned for Port mitigate exchange rate risk. sale of a 33% stake in GNA I and GNA II to
of Açu. The development bank split the financing China’s State Power Investment Company
• GNA I is already built and received its first into 4 tranches, with varying costs and (SPIC).
supply of gas in December 2020 tenors. The R3.92 billion was divided into: The transaction included a clause
• GNA II closed financing at the start of the • R1.833 billion 20-year tenor at a cost of allowing SPIC to participate in future
year (2021) and will start construction in TLP + 3% a year projects, such as the planned GNA III and
H2 2021 • R313 million 6.5 year tenor at a cost of GNA IV.
TLP +4% a year
The JV will now start to look at the 2 • R854 million 20-year tenor at a cost of Advisers on the M&A transaction were:
additional plants – GNA III and GNA IV – to TLP +4% a year • BofA Securities – financial to GNA and
increase the installed capacity by 3.5GW, • R930 million 14.6-year tenor at a cost of shareholders
taking the complex to a total of 6.5GW. TLP +6% a year • Lakeshore Partners – financial to GNA
and shareholders
The financing TLP is a long-term pre-fixed interest rate • Itaú BBA – financial to SPIC
In January (2021), the JV reached financial established by the Central Bank. • Mattos Filho – legal to the sponsors
close on the second LNG-to-power plant, For GNA I, the debt providers were • Trench Rossi Watanabe – legal to SPIC
the 1,673MW GNA II. BNDES and IFC.
Brazilian development bank BNDES was KfW IPEX-Bank – with support All parties involved
the sole lender, providing R3.9 billion ($737 from German ECA Euler Hermes Eike Batista’s company LLX started the
million) to fund the construction, which is Aktiengesellschaft – guaranteed BNDES’ construction of Port of Açu in 2007, with the
slated to commence in H2 2021. portion of the loan. original goal of exporting iron ore produced
Stakeholders are said to be seeking Traditionally, ECAs are not allowed to by another of its subsidiaries, MMX.
additional debt to increase the project’s cover development banks loans. In this Controlled by the American investment
leverage. It is mostly likely going to case, KfW backed the financing from fund EIG Global Energy Partners in
be financed through the issuance of BNDES, which in turn was supported by partnership with Mubadala Investment
infrastructure debentures – a type of bond Euler Hermes. Company, Prumo took over the port in 2013

The Port of Açu project was originally envisioned by Eike Batista, a Brazilian megalomaniac entrepreneur

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Latin America case study

and launched it the next year focusing on LLX started the construction teamed up with GNA, which was originally a
port and industrial operations, and power of Port of Açu in 2007 joint venture between BP and Siemens, but
generation. now includes SPIC as shareholder.
The JV built an LNG terminal including
Today, the port accommodates: a fully dedicated floating storage and
• iron ore terminal (a JV between Anglo regasification unit (FSRU), with a total
American and Prumo) capacity of 21 million of cubic meters daily,
• oil terminal (JV between Prumo and in addition to pipelines connecting to the
Oiltanking) gigantic oil & gas fields in Brazil’s pre-salt.
• marine fuel terminal (JV between Prumo GNA III and IV will use both imported
and BP) LNG and gas produced in the pre-salt. GNA
• multicargo terminal (JV between Prumo I and II will work exclusively on LNG.
and Port of Antwerp) GNA has a long-term fuel supply
• terminal for integrated oil & gas services agreement with BP. All turbines are supplied
(JV between Prumo and GranIHC) by Siemens Energy, including 3 gas
• Edison Chouest terminal (offshore turbines and 1 steam generator for each of
support base) the power plants.
• NOV terminal (manufacture flexible pipes) The project also includes the construction
• Technip terminal (flexible pipes factory) of transmission lines to connect to the
• InterMoor terminal (anchoring services for national grid. GNA I acquired a 23-year PPA
rigs and FPSOs) Prumo began planning the LNG-to-power from Bolognesi Group with 36 distribution
• Wärtsilä plant (production and assembly complex due to the diversity of businesses companies in Brazil, awarded previously in a
for azimuth generators) in the industrial complex which presented government-held power auction.
an opportunity for power generation. GNA II was one of the winners in the
Port of Açu is also currently considering The complex could also easily receive Aneel A-6 auction held in 2017, which
entering the newest wave of green LNG cargo and have heavy industries offered 35-year PPAs for the power plant,
hydrogen production. consume large quantities of energy. It then starting in 2023.

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Asia Pacific case study

Asia Pacific
Tenders launched Projects with recent tender updates
1 Makati Underground Railway System (10.1KM) PPP

Others 2 Millennium Khanh Hoa Province LNG Terminal


52 projects Australia
3 Iron Bridge Iron Ore Mine
71 projects
4 Ca Na Gas-Fired Power Plant Phase 1 (1.5GW)

214
5 Acquisition of 65.5% in Tilt Renewables

Australia-ASEAN Power Link (AAPL) Solar Plant


6
(10GW)

Deals 7 Bangkok-Rayong High Speed Railway (220KM) PPP

8 PNG LNG Phase II


Philippines
17 projects
Closed deals by country
Indonesia
Vietnam 30 projects
India Transaction Country Value ($m) Count
18 projects
26 projects 1 Australia 8,286 19

2 India 6,025 14

Closed deal values by sector 3 Vietnam 2,200 9

4 Philippines 1,738 5
Mining Oil & Gas Power Renewables 5 Pakistan 1,463 2
Transaction count 6 Transaction count 6 Transaction count 15 Transaction count 27

6 Japan 1,288 6

7 Uzbekistan 1,150 3
$2,579 $3,935 $7,741 $4,884
($m) ($m) ($m) ($m) 8 Indonesia 1,064 3

9 New Zealand 438 2

Social & Defence Telecoms Transport Water 10 Kazakhstan 415 1


Transaction count 3 Transaction count 2 Transaction count 7 Transaction count 2
Timor-Leste (East Timor),
11 390 1
Australia

$1,636 $1,839 $1,863 $496 12 Singapore 374 1


($m) ($m) ($m) ($m)
13 China - Mainland 141 1

Transactions that reached financial close

5 Mar 11 Mar 15 Mar 25 Mar 25 Mar 31 Mar 13 Apr 27 Apr

Adani Green Energy Footscray Acquisition of FMG Resources Halmahera Nickel Privatisation of Shirin CCGT NBN Co
Rajastjan Solar PV Hospital PPP 26.25% in Curtis Bond Facility 2021 Laterite Ore 61.65% in Power Plant Refinancing 2021
and Onshore Wind Island LNG's Processing Plant Numaligarh Oil (1.5GW) IPP
Portfolio (1.69GW) Mixed-Use Refinery
2021 Infrastructure

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Hybrid portfolio financing,


Rajasthan
Adani Green Energy this year sealed a $1.35 billion senior debt facility to finance India’s largest
hybrid cluster development. IJGlobal APAC editor David Doré explores India’s first large-scale cross-
collateralisation project financing structure in the hybrid space, and examines the market’s single
largest diversified commercial bank project finance deal since the 1990s.

Adani Green Energy’s (AGEL) earnings call • Rabobank – bookrunner Vneet Jaain
with debt investors on 10th May (2021) • Siemens Bank – bookrunner
highlighted one of the company’s most • SMBC – bookrunner
consequential transactions to close in
FY2021. The transaction involved several innovations
AGEL sealed a $1.35 billion senior in India’s project-finance market.
debt facility with participation from 12 “This is the first diversified hybrid project
international banks to finance India’s largest financing,” says a project insider.
hybrid cluster development. “We’ve seen cross-collateralisation
The facility will initially finance the structures in the renewables space, going
1.69GW hybrid portfolio of solar and wind as far back as 2012,” the source added,
energy projects under construction by “and some on the bond side with cross-
4 SPVs in India’s north-western state of collateralisation.”
Rajasthan. “This is India’s first extremely large-scale
It is one of the largest revolving project cross-collateralisation project financing
finance deals to date in the Asian structure in renewables and in the hybrid
renewables sector. space in particular.”
The facility is also India’s first Asia Pacific The closest structuring model comparable
Loan Market Association-certified (APLMA) is a restricted group (RG). Although not
green hybrid project loan, although Soft common in India’s US dollar bond market,
Bank subsidiary SB Energy’s 900MWdc AGEL and ReNew are among half a dozen
solar farm in Phalodi-Pokhran Solar Park, or more sponsors with RGs in the bond
Rajasthan, also claims to that distinction. market.
In India’s finance market, cross- "The banks that have
Financing collateralisation often pertains to cashflow
The $1.35 billion senior debt revolving capabilities of the underlying projects and committed to this strategic
project finance facility is funding India’s not physical security. transaction are our key
largest hybrid cluster development, which is Since the Securities and Exchange Board
under construction strategically in the heart of India (Sebi) classifies AGEL’s revolving partners in ensuring seamless
of the Thar Desert near Jaisalmer. project finance facility as an external access to global capital for our
commercial borrowing (ECB), the sponsor
The 12 commercial banks and their roles can’t cross-collateralise using physical
underlying renewable asset
are: assets. portfolio."
• Standard Chartered – lead underwriter, In a bond RG, “each SPV guarantees
MLA, bookrunner, environmental due the note obligations of the other 2 SPVs,
diligence adviser, co-documentation bank although the notes constitute each issuer’s
and co-green loan coordinator obligations only on a several basis,” Fitch the bond market, except an assurance of
• MUFG – bookrunner, technical bank and explained in October 2020, when rating taking the projects to the bond market.”
co-green loan coordinator AGEL Restricted Group 2’s $362.5 million The RG-like project finance structure
• BNP Paribas – bookrunner and co- notes due 2039. places a premium on the banks getting
documentation “It is sponsor-supported but the take-out comfortable with the quality of the assets,
• DBS – bookrunner and accounts bank is most similar to a bond refinancing take- quality of the project cashflows, and the
• Mizuho – bookrunner and financial out in particular,” noted the project insider. sponsor’s – in this case Adani’s – record of
modelling bank “It is the first time in many ways this quasi mitigating completion risk.
• Barclays – bookrunner bond take-out structure with limited recourse This project finance RG model can be
• Deutsche – bookrunner has been structured in. The recourse is replicated across infrastructure sectors,
• ING – bookrunner effectively for completion. However, the including roads and smaller project
• Intesa Sanpaolo – bookrunner take-out has not been underwritten through financings.

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“It’s India’s first project finance RG,” the Adani also has 2.87GW under execution, Stage 3 – execution in progress – involves
project insider points out. “It boils down to split among: detailed engineering, supply chain
the sponsor’s capacity to deliver the cluster • hybrid – 1.69GW management, site execution and O&M
of projects.” • wind – 1.13GW readiness, including integration to Adani’s
From an outsider’s perspective, it may • solar – 50MW Energy Network Operations Centre.
be surprising that no Indian lenders The hybrid cluster will power more than
participated in the transaction. However, this A further 8.9GW are near construction as 1.3 million households and annually avoid
was an international borrowing programme follows: 5.8 million tons of CO2 emissions.
from the very beginning, a source shares. • solar – 8GW
“The banks that have committed to this • hybrid – 600MW Advisers
strategic transaction are our key partners in • wind – 300MW
ensuring seamless access to global capital Advisers to the sponsor were:
for our underlying renewable asset portfolio,” That’s a combined 15.24GW across Adani’s • Latham & Watkins – legal international
AGEL chief executive Vneet Jaain said in renewables portfolio, for anyone counting. • Luthra & Luthra – legal local
March (2021). “The facility will also ensure Bottom line is that Adani has experience
capital recycling needs of the banks and delivering projects. Lenders’ advisers comprised:
make the same capital available for future The 1.69GW hybrid cluster development • Linklaters – legal international
projects of AGEL.” near Jaisalmer spreads across more than • Cyril Amarchand Mangaldas – legal local
A market insider insists this was the single 10,000 acres of land. • Tractebel Engineering – technical
largest diversified commercial bank project Bankers were attracted to the metrics of • UL – energy yield assessment consultant
finance transaction in India since the 1990s. India’s largest hybrid cluster: • ERM – environmental & social
“I’ve not seen a larger portfolio of • high capacity utilisation factor of 46% • Arcadis – environmental and social due
international commercial banks come • 100% contracted diligence
together. That’s a massive achievement.” • 25-year PPAs • Deloitte – model audit
A project insider confirmed that the • Marsh – insurance
transaction reached financial close in FY21, Adani detailed 3 stages of the cluster
after one of the 4 project companies had development. AGEL fully de-risked stage 1 KPMG was the green loan’s independent
its first drawdown. “Different entities need – site origination – well in advance. “Perfect assurance provider.
money at different points in time,” they said. location for hybrid,” said the company, with Variability in renewable energy generation
“At least one of those entities has borrowed these characteristics: is a concern among power regulators,
under the consolidated structure.” • solar irradiation – 2,000 kWh/sqm – top developers, bankers and advisers. As the
5 in India share of renewable energy expands in the
India’s largest hybrid cluster • wind speed – 7 meters/second energy mix, the problem becomes more
development • ample availability of non-agricultural pronounced.
The financing transaction was mainly barren land Hybrid wind and solar power plants help
achieved during the outbreak of Covid-19. reduce variability in power generation.
Activities included not only limited site visits, The cluster also has well planned They also mitigate the intermittency
technical and legal due diligence, and land evacuation. It is connected to central grid challenge by having a higher capacity
review but also a review of Adani’s portfolio. distributing power across India through high utilisation, as solar generation is higher
Adani’s 50/50 JV with French energy and capacity transmission lines including 765kV. during the day and wind generation can be
power developer Total has 2.353GW of Adani mostly de-risked stage 2 – site higher at night.
operational solar. Adani’s own operational development. It has completed 71% of While energy storage may be the
assets include 620MW solar and 497MW the total 10,294 acres of land acquisition missing asset to optimise this power
wind including 150MW wind assets under while keeping an eye on stakeholder solution, hybrid power plants are likely to
acquisition from Inox. management and construction approvals. gain market share.

AGEL in April (2021) described the cluster as follows:

Project 1 Project 2 Project 3 Total

PPA capacity (MWac) 390 600 700 1,690

Solar (MWac) 360 600 600 1,560

Wind (Mwac) 101 151 510 762

Counterparty Seci Seci AEML

Counterparty type Sovereign Sovereign Sovereign equivalent rated

Solar module maker Longi Longi and Jinko Jinko

Wind turbine generator maker Suzlon Suzlon Siemens Gamesa and Suzlon

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Middle East & Africa case study

Middle East & Africa


Tenders launched Projects with recent tender updates
1 Abydos Solar PV Plant (500MW)

Saudi Arabia 2 Bahrain Metro Phase 1 (109KM)


22 projects
Others 3 Sudair Solar PV Plant (1.5GW) IPP
28 projects Red Sea Tourism Megaproject Renewable Energy &
4
Water Infrastructure PPP

64
5 Acquisition of 49% in Aramco Oil Pipelines Company

6 IGCC Jazan Power Plant (3800MW)

Deals 7 Mphanda Nkuwa Hydro Power Plant (1500MW) IPP

8 Zayed City Schools PPP

Closed deals by country


UAE
6 projects Transaction Country Value ($m) Count
South Africa Oman 1 Mozambique 22,578 1
4 projects 4 projects 2 Saudi Arabia 21,534 7
3 Israel 2,500 1
4 United Arab Emirates 2,420 3
Closed deal values by sector 5 Angola 530 1
Water & 6 Côte d'Ivoire 468 1
Oil & Gas Power Renewables Renewables 7 Egypt 284 2
Transaction count 2 Transaction count 5 Transaction count 7 Transaction count 1
8 Ghana 273 3
9 Uganda 271 1

$25,078 $2,396 $1,218 $1,333 10 Senegal 250 1


($m) ($m) ($m) ($m) 11 Morocco 165 2
12 Tanzania 144 1
13 South Africa 75 1
Telecoms Transport Water Social & Defence 14 Benin 37 1
Transaction count 4 Transaction count 3 Transaction count 3 Transaction count 5
15 Madagascar 15 1
16 Rwanda 13 1
$325 $805 $1,030 $4,214 17 Nigeria 5 2
($m) ($m) ($m) ($m)
18 Malawi 2 1

Transactions that reached financial close

1 Mar 10 Mar 31 Mar 12 Apr 28 Apr 5 May 17 May 28 May

Area 1 Public Investment Jeddah and Rabigh Solar PV Red Sea Tourism Acquisition of a ACWA Power Malagarasi Hydro
Mozambique LNG Fund Revolving Makkah School Plant (300MW) IPP Megaproject Green 20% Stake In Sukuk Additional Power Plant
Credit Facility Bundle PPP Financing Mirfa Facility 2021 (50MW)
2021

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Middle East & Africa case study

Yanbu-4 IWP Saudi Arabia


An Engie-led consortium put the 450,000 cubic m3pd Yanbu-4 IWP project to FC in March –
contributing to the strong flow of water project financing in Saudi Arabia. IJGlobal reporter James
Hebert reports.

Saudi Arabia’s water drive continues with slightly smaller Shuqaiq-3 IWP by the former • Marubeni, Marafiq – SR1.9168/m3
the 450,000 cubic metres per day (m3pd) Water & Electricity Company (WEC) on 24 • Veolia Middle East, Alkhorayef Group, Al
Yanbu-4 independent water producer October 2017. Bawani Water & Power – SR2.0242/m3
(IWP) project which was bought to financial The design capacity of Shuqaiq-3 was
close by an Engie-led consortium in March later increased from 380,000 to 450,000 A sixth bid from Utico was declared non-
(2021). m3pd by the time it had been signed to a compliant. SWPC had chosen to delay
The $880 million project includes a 39km, Marubeni-led consortium in January 2019. announcing the bid prices at the time, but
600,000 m3pd transmission pipeline – or The change may have been due to the Utico’s proposal was undermined by the
water special facilities (WSF) – which will be protracted tender process of its formerly financial instability of its chosen EPC partner
the first such asset developed by the private bigger brother in Yanbu-4. Hyflux.
sector in the Kingdom. Over a year-and-a-half later, WEC re-issued Utico’s long-term partnership with
The sponsors were able to retain the pre- a call for expressions of interest (EoIs) the Singaporean EPC contractor also
pandemic debt pricing for the $400 million for Yanbu-4 in March 2019, despite the complicated the tender for the 545,000
soft-mini perm signed with 5 banks. receipt of 51 such responses for the original m3pd Hassyan IWP in Dubai over the
The other lender – the Export-Import Bank October 2017 call. course of 2020 – but Utico nonetheless won
of Korea (KEXIM) – provided an extra W260 Meanwhile, the $600 million Shuqaiq-3 the tender in November that year and set a
billion ($232.2 million) in debt which largely went to financial close just a few months world record for desalinated water tariff at
paid for the late addition of the WSF, and later on 8 May 2019. $0.27762/m3.
forms part of a strong Korean backing for WEC became SWPC by the time 6 RFP The result in Dubai suggests that Utico
the project. responses were received on 7 October may have also put in a highly competitive
The Saudi Water Partnership Company 2019 for Yanbu-4, but only 5 were deemed bid for Yanbu-4.
(SWPC) has successfully procured another compliant. Nonetheless, back in Saudi Arabia the
major reverse osmosis desalination IWP, The bids were finally opened on 13 Yanbu-4 scheme was awarded to the Engie-
just 6 months after FC on Jubail 3A in February 2020: led consortium. The members and equity
September 2020. • Engie, Mowah – SR1.7446/m3 stakes of the consortium are:
Yanbu-4 will be located at Ar Rayyis within ($0.465227) • Engie – 40%
the Madinah Region on the Red Sea coast. • FCC Aqualia, Haji Abdullah Alireza & Co, • Mowah – 30%
Alfanar – SR1.7775/m3 • Nesma – 30%
Tendering • ACWA Power, Gulf Investment
The SWPC was not yet called that when Corporation, Al-Babtain Contracting – Saudi Water Partnership Company (SWPC)
Yanbu-4 was first launched alongside the SR1.8435/m3 signed with the sponsors the original 25-
year PPA on 28 February 2020 using the
The design capacity of Shuqaiq-3 was increased from 380,000 to 450,000 m3pd winning tariff of 0.465227/m3.
However, due to the increased capex
following to the addition of the WSF in
February this year (2021), it means that the
agreed tariff was raised accordingly in a
new set of signed project documents from
the same month.

Financing
Financial close was also an oft-delayed
process, both due to the onset of the
Covid-19 pandemic and the late addition
of the WSF which amended the project
documents.
The first target for FC was May 2020,
however ensuing postponements were
expected “given the impact of Covid-19 on
some of the required local administrative
CPs”, a source close to the deal told
IJGlobal in June 2020.
Even in April this year (2021), some deals
in the MENA region are still being signed via

www.ijglobal.com Summer 2021


160
Middle East & Africa case study

virtual ceremonies rather than in person. Yanbu-4 – a statement of intent KDB was already attached to the deal some
Nonetheless, the Engie-led consortium Yanbu-4 is emblematic of the Saudi intention months prior.
put Yanbu-4 to financial close on 21 March to fulfill its national water objectives of the The sponsors have said that they are
(2021) after a year-long wait from the award Vision 2030 initiative, while maintaining a committed to the local content requirements
in February 2020. primary role for the private sector. – a Saudization rate of 40% during
The debt/equity ratio is 72:28. The The desal also features the ever- construction, rising to 70% within 5 years of
commercial banks on the deal are: increasing local content requirements the start of commercial operations.
• MUFG – global facility agent sought on new projects. Yanbu-4 IWP is expected to begin
• KDB SWPC must be reeling. In spite of the commercial operations in Q4 2023.
• NCB pandemic, it has overseen the financial close
• Riyadh Bank of 2 major desalination schemes within 6 Advisers
• Standard Chartered months, from the 600,000 m3pd Jubail 3A
on 2 September 2020 to the 450,000 m3pd The advisers to SWPC were:
The lenders signed in December 2020 on a Yanbu 4 on 21 March (2021). • SMBC – financial
$400 million soft mini-perm using the same Like Jubail 3A, Yanbu-4 will include • DLA Piper – legal
debt pricing agreed before the onset of the 20MW of solar PV to provide captive power • ILF Consulting – technical
pandemic in March (2020). and reduce the asset’s burden on the
Two lenders also provided equity bridge national grid. Deloitte advised local investor Mowah.
loans to the sponsors: Moreover, the WSF will be transferred to
• Unicredit the Saline Water Conversion Corporation Engie was advised by:
• Riyad Bank (SWCC) upon construction. • Covington & Burling – legal
The sponsor consortium signed with • Mott MacDonald – technical
The project financing was reviewed by South Korean engineers Doosan Heavy • Mazar – model auditor
the second party opinion provider Viego Industries the $708 million EPC contract for
Eiris, and thus was eligible for green loan the desal in January (2021). The signing The lenders were advised by:
principles. The green loan coordinator on disclosed the deepened Korean role on the • Herbert Smith Freehills – legal
the deal was MUFG Bank. project with the involvement of Kexim, while • Atkins – technical

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