Sydney, 28 March 2018 – Mitsubishi UFJ Financial Group’s banking entity The Bank of Tokyo-Mitsubishi UFJ, Ltd. (MUFG) has announced the 29 March financial closure of syndication of an 11-year, A$500 million project facility for Sydney Desalination Plant Pty Ltd (SDP).
The A$500mil facility was part of the A$1,680mil of debt facilities raised by SDP in February to refinance all of its existing debt.
MUFG is the sole mandated lead arranger, underwriter, bookrunner, swap provider and facility agent for this transaction, which follows the successful syndication of the A$766.1 million Aquasure Finance Pty Ltd financing in October 2017.
The transaction continues MUFG’s support of financial institutions in the Japanese market by bringing global debt opportunities to Japan for distribution. By virtue of MUFG’s leadership in Japan, its global network and presence in Australia for nearly 35 years, the bank was able to invite multiple financial institutions to consider this opportunity.
Primary syndication is expected to close on 29 March with multiple Japanese lenders joining this transaction This transaction was well supported by Japanese life companies and Japanese regional and cooperative banks. For several of these institutions this was their first Australian transaction or first offshore transaction without a Japanese sponsor.
MUFG was the sole arranger and underwriter for the facility, structuring the transaction into two tranches, with a majority tranche in AUD and a smaller USD tranche. The transaction was originally funded entirely in AUD in February by MUFG and will be converted to a combined USD and AUD facility at the close of syndication on March 29.
Geoff Daley, deputy general manager, Australian Structured Finance Office, MUFG, said: “We are delighted to complete our second major samurai loan for an Australian infrastructure client. These deals require great collaboration between MUFG’s global syndications team with our Australian derivative and debt structuring expertise to bring a major Australian issuer to the long term samurai bank debt market.
“It is pleasing that a large offshore financing of this nature was able to be completely funded by Japanese institutions which demonstrate the benefits of being a global financial institution with deep roots and connection to Japan. By utilising our unique capabilities we are able to match the needs of Australian borrowers to access long term bank debt and the needs of Japanese banks to access quality assets offshore.”
Daisuke Otsuka, global head of loan syndications, MUFG, said: “We are grateful to see new entrants to this market demonstrating developing capabilities of Japanese financial institutions. The samurai market should continue to grow at a fast speed and become a major source of overseas financing.”
The Sydney Desalination Plant, based near Sydney, is the only major privately owned and publically regulated critical water supply asset in Australia. It is also the Sydney region’s sole rainfall independent water source and is capable of supplying around 15% of Sydney’s water requirements. SDP is owned by Ontario Teacher’s Pension Plan, The Infrastructure Fund and Utilities Trust of Australia.
For further details on the project see https:// www.sydneydesal.com.au//
About The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups, with total assets of approximately US$2.6 trillion as of 31 March 2017.
Headquartered in Tokyo and with approximately 350 years of history, MUFG has a global network with over 2,300 offices across more than 50 countries. The Group has about 150,000 employees and about 300 entities, offering services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group’s operating companies include Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking Corporation (Japan’s leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japan’s largest securities firms.
The Bank of Tokyo-Mitsubishi UFJ, Ltd., is Japan’s premier bank, with a global network spanning over 50 countries. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG shares are traded on the Tokyo, Nagoya, and New York (NYSE: MTU) stock exchanges.
MUFG is a leading global bank in the Australian market. MUFG has over 300 employees in Oceania across Sydney, Melbourne, Perth and Auckland, and loans to Australian corporates and projects in excess of A$20bn. It consistently ranks within the top 5 lenders to project finance transactions in Australia, with a particular focus on the infrastructure and renewables sectors.
For more information, visit www.mufg.jp/english.