Weekly Closer: Megadeals in transport and energy

This week saw 18 financial closes, nine of which have reported data to our sister platform, IIassets.com, with major deals in transportation and energy. 

Transportation 

At the top of the fray this week was the Metro Line 7 PPP Project , with San Miguel Corporation reaching financial close on the $1.3 billion deal on 15 February. The contract calls for the construction of a 22.8-kilometre (km) rail system in San Jose del Monte, Bulacan, in the Philippines.

The TransEd Partners consortium closed on the nearly $1.3 billion Edmonton Light Rail Network PPP, in Canada, making way for the development of a multi-phased 27km, 25-stop, three-station route expected to service 100,000 daily commuters.

With sponsors including Brookfield Infrastructure Partners, Antin Infrastructure Partners and Arcus European Infrastructure Fund, the $485 million Euroports Refinancing was the next-largest deal by value in the transportation sector this week. Original financing terms agreed in 2013 for the Netherlands-based asset are being amended and extended through four term loans set to mature in 2020, provided by an 11-strong banking consortium led by Lloyd's Banking Group, BNP Paribas and Natixis. 

The Beatrix Lock PPP Project was another Netherlands-based financial close reached this week. Sas van Vreeswijk SPC agreed to construct a third lock chamber and enlarge the existing Canal Lek. The 27-year contract was made possible through bank financing from BNG Bank, Deka Bank and KBC Bank. 

Energy 

The $1.9 billion Fortum Distribution Acquisition Refinancing in Sweden, by Caruna Group, was by far the largest deal of the week in the energy sector. Linklaters advised the firm formally known as Fortum Distribution Finland (Caruna) on the debt refinancing, which is being provided by a syndicate of banks. 

Another highlight was the financial close reached on Pakistan's Thar Block II Power Plant PPP Project, a $1 billion power plant being developed by Engro Powergen, a tie-up between Engro, CMEC and an undisclosed Pakistani financial investor. Power generated at the plant is set to be purchased by the local government. 

The acquisition of a 50 percent stake in Burbo Bank Extension Offshore Wind Farm from project developer DONG Energy by PKA and KIRKBI – each of which will take a 25 percent ownership interest for a combined $957 million – nearly achieved mega-deal status. Once completed, the farm will feature 32.8-megawatt turbines.

For $78 million, Origin Energy Limited has agreed to sell Mortlake Terminal Station in Victoria, Australia to AusNet Transmission Group. The transaction remains subject to customary conditions, including Foreign Investment Review Board approval and finalisation of documentation by the Australian Energy Market Operator, both of which are expected to be completed by 30 June. 

With support from multilaterals including the Emerging Africa Infrastructure Fund and The Netherlands Development Finance Company, the $19 million Soroti Solar Power PPP Project reached financial close in Uganda on 20 January, though reporting only came through this past week. 

Social Infrastructure

Two deals were reported this week without financial close details. First up was the 21 January closing for the University of Kansas Central District PPP Project, to develop 55 acres of the campus by Edgemoor Infrastructure & Real Estate. JPMorgan acted as lead underwriter and bookrunner on 30-year bonds rated Aa2 by Moody's.

Next and last for the week was the Almana General Hospitals Acquisition by Ebrahim Mohammed Almana & Brothers on the divestment of 20 percent to Sanabil investments. GIB capital acted as Almana's financial advisor in the transaction.