It is understood Pacific Hydro had Bank of China and China Construction Bank arrange the refinancing, while other lenders included China’s Bank of Communications, China Merchants Bank and Industrial and Commercial Bank of China.
The three-year money replaces the group’s $1.6 billion loan, lined up in January 2020 and due to last until this year. The former loan was at swaps plus 0.9 per cent, according to the group’s most recent annual report. Of course much has changed in Australia’s energy market since, including the arrival of big offshore European renewables groups and local players that have been keen to snap up any generation platforms of size.
State Power Investment Corp paid more than $3 billion to buy Pacific Hydro from IFM Investors and AustralianSuper. It was a tough investment for IFM,, however it ended up finding a buyer willing to pay a big price.