Weekly Closer: APAC energy takes the lead

With just under $1 billion in financial closings in the energy and renewables space reported by the market last week to sister platform IIassets.com, the Asia-Pacific region was strongly in front of the rest of the world by value. By volume, it was North America that led with six out of fifteen reported deals reaching financial close, followed by Western Europe, which saw five transactions concluded. 

Energy | Total deal flow = $1,011.03 million

The Kobe Steel Corporation-sponsored Kobelco Moka GTCC Power Project was the largest reported deal to close this week, according to IIassets.com, with a total value of JPY 76,280 million ($671 million; €601.78 million). The project, which closed on 31 March, is being financed through three separate 15-year loans to Kobelco Power Moka from Mizuho (for $287.91 million), Bank of Tokyo-Mitsubishi UFJ ($191.94 million) and Sumitomo Mitsui Banking Corp ($191.94 million). The financing will support a 2x 600 MW combined cycle gas turbine power plant using Tokyo Gas Co fuel supply to generate electricity, which will be sold back to Tokyo Gas Co for 15 years.

With support from a $44.28 million term loan from SMBC, the Banpong Utilities SPP Combined Cycle Power Project reached financial close on 28 March. The Electricity Generating Public Company is the sponsor on the $236.2 million project, with the loan issued to Banpong Utilities Company. The project also includes a second tranche of $103.4 million in debt financing through a term loan, though details of that tranche remained unavailable at the time of publication. The 250MW Banpong facility is located in Thailand.

Capstone Infrastructure Corporation reached financial close on its Cardinal Gas Cogeneration Project in Canada on 21 March. Financing consists of a seven-year $70 million term loan with an interest rate of 2.68 percent and a $13 million letter of credit facility.  

Holly Energy Partners completed the Crude Oil Tankage Assets Acquisition from Plains All American Pipeline LP on 1 April. The $39.5 million asset is located at HollyFrontier Corporation's Tulsa, Oklahoma refinery. 

Tri-County Electric completed its sale of Tri-County Electric Cooperative Transmission Assets to Blackstone's GridLiance Holdco on 5 April without reporting financial details. The acquisition includes the transmission assets and related infrastructure of the cooperative, comprising 410 miles of 69 and 115kV transmission lines and associated substations. GridLiance has assumed full operational responsibility for the assets through its subsidiary South Central MCN. 

Renewables | Total deal flow = $251.28

The Harburnhead Wind Farm Project , sponsored by FIM Services and LDV Enel Viento, reached financial close with a £70 million loan on 24 March. The term loan was issued by Bank of Tokyo-Mitsubishi UFJ and Barclays Bank – each provided half of the term loan amount to LDV Harburnhead for development of a 51.7 MW wind farm near West Calder in the UK.

With multilateral support from the Nordic Investment Bank, the Helgeland Kraft Hydropower Plant Project reached financial close on 5 April. NIB signed a 15-year loan with Helgeland Kraft AS to finance six hydropower plants (Leiraa, Bjornstokk, Tverraa, Storelva, and Tosdalen) in Nordland County, Norway, which will together produce 133 GW/hours of energy once construction is completed in September 2017.

O Company closed on financing for the $54.69 million Shiraoi PV Project in Hokkaido, Japan, on 31 March. Along with roughly $10 million in equity, the 18.9 MW project is supported by two loans totaling $44.47 million (JPY 5,050 million). The first loan for JPY 4,639 million from SMBC has a repayment frequency of six months, base and margin of 6M LIBOR, and a tenor of 18 years. Loan B is a term loan for JPY 411 million with a tenor of 1 year. Power produced at the PV plant is sold to Hokkaido Power through a 20-year PPA.

Also in Japan, the 13 MW, JPY 4,171 million ($36.73 million) Hiraizumi Solar Energy Project closed on 31 March with support from two loans. Loan A is a $29.24 million, 18-year term loan with a repayment frequency of six months, and base and margin of 6M LIBOR, and was provided by an underwriting club including SMBC ($8.1 million), 77 Bank ($7.93 million), Iwate Bank ($7.93 million), and Kita-Nippon Bank ($5.28 million). SMBC provided the $2.27 million in financing for the B loan, which has a tenor of three years, a repayment frequency of one month, and base and margin of 1M LIBOR. 

Arise completed the Kolvallen Vind AB Acquisition from Ownpower Projects Europe on 6 April for SEK $20 million ($2.46 million; €2.16 million). The company now owns all shares in the 180MW Kolvallen project, which is located in Ljusdals, Sweden, and is expected to include the rights to build approximately 50 wind turbines.

Invenergy Wind completed the financing for the Wake Wind Energy Centre Project on 5 April for an undisclosed amount. The project is set for development by Blattner Energy. Morgan Stanley and its affiliates acted as sole lead arranger, administrative agent, and lender for the construction financing. Once complete, the 257 MW project will include 150 turbines.

Duke Energy Renewables completed the Hertford and Long Farm Project Acquisition from ET Capital on 5 April for an undisclosed amount. Included in the deal are Hertford Solar Project and the Long Farm Solar Project, which were completed in March. Together, the two plants comprise 10 MW of power generation, which is being sold to Dominion NC Power through 15-year agreements.

Social Infrastructure | Total deal flow = $6.37 million 

Empiric Student Property closed on the Stonemason House Student Accommodation Acquisition on 1 April in Oxford, UK. The £4.5 million ($6.37 million; €5.7 million) acquisition includes a 44-bed facility which is divided into a mix of four-, five-, six- and seven-bed en-suite apartments. The property has been leased to St Cross College of The University of Oxford through a three-year lease due to expire in September 2017. 

In its second closing reported this week, Empiric completed the Saxon Court Student Accommodation Acquisition on 29 March for an undisclosed amount. The acquisition includes an 83-bed student accommodation property in central Reading, UK, within a short walk of the railway station, and the London Road and Whiteknights campuses of the University of Reading. 

Waste & Water | Total deal flow = TBD

Missouri American Water completed the Benton County Sewer System Acquisition on 31 March for undisclosed amount. The system is located in the city of Warsaw, Missouri, and serves approximately 400 customers. It had previously been operated by the Benson County Sewer District.