Auckland, Sydney, 19 September 2018 – Mitsubishi UFJ Financial Group’s banking entity MUFG Bank, Ltd. (MUFG) has delivered and reached financial close on the NZ$750 million Waikeria Corrections and Treatment Facility Public Private Partnership (PPP) project in the Waikato region in New Zealand.
MUFG was the sole financial advisor to the successful consortium and one of the mandated lead arranger banks. As financial advisor, MUFG provided financial structuring, financial modelling and debt arranging services to the consortium, bringing together a syndicate of banks comprising MUFG, ANZ, KfW, Natixis and Mizuho.
The Waikeria Corrections and Treatment Facility will be operated by the Department of Corrections and will deliver accommodation for 500 prisoners, along with a secure mental health unit providing care for additional prisoners.
The new facility will be built on the site of the existing Waikeria Prison in the Waikato region (upper North Island) of New Zealand, as part of the New Zealand Government’s program to deliver a more effective and humane justice system.
Construction has commenced through an early works agreement and the new Waikeria facility is set to open in 2022.
Rob Ward, Managing Director and Head of Advisory, Australian Structured Finance Office, with MUFG Bank in Australia said: “The Waikeria Corrections and Treatment Facility is the second largest PPP in New Zealand for which MUFG has been the financial advisor (the first was Transmission Gully). It is a significant business milestone. We are proud to have supported our key clients CIMIC and HRL Morrison in delivering high quality social infrastructure”.
Nick Congdon, MUFG Bank’s New Zealand based Managing Director and Head of Corporate & Institutional Banking said: “MUFG’s success in advising and providing finance for the project underlines our expertise in the PPP space and our commitment to the New Zealand market.
“We are already the leading global bank for our chosen corporate clients, and this transaction solidifies our position as one of the leading global banks in project finance in New Zealand. We look forward to undertaking further advisory and financing roles on a range of PPPs and other projects in the future.”