Nine infrastructure project deals reached financial close this week, with a $27 billion Russian liquid natural gas plant PPP project far and away the largest by value, according to this week's data from IIassets.com.
By volume, the renewables sector came first with four deals closed. Geography saw four transactions closed in Western Europe, three in North America, and one each in Central/Eastern Europe and Asia-Pacific.
Energy | Total deal flow $27.1 billion
The €23.6 billion ($27 billion) Yamal LNG PPP Project closed on 13 April with 150 million Russian Rubles ($2.279 million; €2.026 million) financing from the National Welfare Bank of Russia and a Euro-denominated €3.6 billion, 15-year credit facility from Gazprombank and Sberbank. The loan carries a 4.7 annual interest rate over six-month Euribor.
Yamal is currently under construction with Entrepose Contracting and VINCI Construction Grands Projects delivering engineering, procurement, supply, construction and commissioning of four cryogenic full containment LNG storage tanks with capacity of 160,000 cubic metres each. When complete, it is expected to have a capacity of 16.5 million tons per year with logistical support from two trains. Technip is also listed as a developer on the project, and sponsors include Novatec, Total SA, CNPC and the Silk Road Fund.
GE Energy Financial Services closed the acquisition of a 28 percent stake in Whiptail Midstream from I Squared Capital for $79.8 million on 14 April. Whiptail is a subsidiary of the Cube Midstream portfolio company of the ISQ Global Infrastructure Fund. The 220-mile system is designed and constructed by WPX – which will continue to operate the system for at least two more years – and comprises three gathering lines of oil, gas, and water, which span nearly 100,000 acres in north-western New Mexico and south-western Colorado.
Waste & Water | Total deal flow $707.32 million
United Utilities' water & wastewater utility project closed on a £500 million ($707.32 million; €627.08 million) loan from the European Investment Bank on 18 April. The loan will be disbursed in two parts, beginning with a £250 million, 18-year loan and with the second tranche to be signed as United Utilities' capital improvement programme progresses. The primary loan will finance a proposed pipeline to link West Cumbia to Thirimere and the rest of the regional water network. It will increase Blackpool's sewer network capacity and reduce the impact of storm overflows while upgrading and replacing half of the treatment process at the utility's Davyhulme plant.
Renewables | Total deal flow $540 million
The €295.4 million Ibereolica Solar Olivenza Refinancing closed on 7 April with a €183.8 million loan from a syndicate of seven banks. Banco Bilbao Vizcaya Argentaria, Grupo Santander, and Instituto de Credito Oficial each provided €37.66 million in debt, while Caixabank loaned €22.42 million, Banco Popular Espanol €11.47 million, Banco Cooperative Espanol €3.27 million and Bancp de Sabadeil €3.06 million. The 21-year loan is to be repayed semiannually.
NextERA Energy Resources closed the Heartland Wind Refinancing on 31 March with a $185.43 million term loan from Norddeutsche Landesbank, Bank of Tokyo-Mitsubishi UFJ, Credit Agricole CIB, Landesbank Hessen-Thuringen Girozentrale, MUFG Union Bank, and Siemens Financial Services. Bank of Tokyo-Mitsubishi UFJ acted as successor administrative agent, MUFG Union Bank NA acted as Successor Collateral Agent. Legal advisers to banks included Faerge Baker Daniels, Simpson Thatcher & Bartlett, and Vogel.
On 13 April Trade Winds Energy, an Engie Group subsidiary, closed the acquisition of six wind farms in New Caledonia from Quadran Group for €16 million. The Lifou Island plants comprise 38MW of total generation.
Apex Clean Energy reported closing the Sugar Creek Wind One Project Acquisition without disclosing financial details. The acquisition from American Wind Energy Management Corp on 14 April adds 175MW of generation capacity to the Apex portfolio.
Telecoms | Total deal flow $171.21 million
Financing closed on Axione, Bouygues and FIDEPPP's €150 million DSP THD Alsace PPP Project in France on 12 April. Natixis served as financial advisers in the transaction, and Mott MacDonald acted as lenders' technical advisor. The project is currently under construction and comes with a 30-year contract.
Social Infrastructure | Total deal flow $39.76 million
Galliford Try closed the three-tranche financing for the £28.1 million East Lothian Community Hospital PPP Project on 1 April. The first tranche is a 26-year, £25.9 million loan, the second a one-year, £1.3 million term loan, and the third a 26-year, £900,000 term loan. All tranches come from Norddeutsche Landesbank with Mazars as financial adviser and JLT Law, Shephard & Wedderburn and WSP Soliciters as legal advisers to the bank.