Deal details
NeuConnect Interconnector Project Financing
Description
The £2.2 billion ($2.6 billion) DFI/ECA-backed debt package funding the construction of the interconnector project linking Germany to the UK – NeuConnect – reached financial close on 21 July this year. Sponsored by Meridiam, Allianz Capital Partners, Kansai Electric Power, FI1 (in process of selling its stake), the project will have a 725km cable with a rated capacity of 1.4GW and DC voltage of 525 kV.Lenders on the deal include AIB, Bank of China, BayernLB, CaixaBank, CIC, DZ Bank, EIB, JBIC, Lloyds, Mizuho, Nippon Life, Norinchukin, NordLB, Rabobank, Societe Generale, Shinsei, Siemens Bank, SMBC, SMTB, Talanx Group (represented by Ampega Asset Management) and UK Infrastructure Bank (UKIB). However, the lenders were not all involved in both tranches, selecting the currencies they were most comfortable to lend in. The multilaterals were heavily involved in the debt component, with the EIB providing €380 million in the EUR tranche, JBIC put up £270 million in the GBP tranche and €157 million in the EUR tranche, and UKIB funded £150 million in the GBP tranche. The largest commercial debt tickets – at and above €100 million – are understood to have been provided by the AIB, Ampega, Lloyds, Nippon Life, and Norinchukin.The 25-year facility comprises two tranches: a £1.307 billion loan priced at 180bp (over reference rate) during construction and steps down during operation to 160bp (years 1-10), increasing incrementally to 175bp (years 11-17) and then 190bp (year 18 to maturity); and a €1.08 billion loan priced at 160bp (over reference rate) during construction and dropping to 140bp during years 1 to 10 of operation, then increasing from years 11 to 17 to 175bp and 190bp from year 18 to maturity.Advisers include: Societe Generale – financial to sponsors; Linklaters – legal to sponsors; CMS – legal to sponsors; Herbert Smith Freehills – legal to lenders; and Arup-Fichtner JV – EPC.
Assets involved
Companies involved
- CaixaBank, Societe Generale, BayernLB, DZ Bank, Nippon Life, The Norinchukin Bank, Rabobank, Allied Irish Banks (AIB), Credit Industriel et Commercial (CIC), Siemens Bank, Mizuho, Shinsei Bank, Sumitomo Mitsui Trust Bank (SMTB), Bank of China, Lloyds Bank, Ampega
- Societe Generale
- Societe Generale
- Linklaters, CMS
- Herbert Smith Freehills, Hogan Lovells
- European Investment Bank (EIB), UK Infrastructure Bank (UKIB)
- BDO Capital
- Norddeutsche Landesbank (NORD/LB)
- Prysmian Group, Arup
- Japan Bank for International Cooperation (JBIC)
- Norddeutsche Landesbank (NORD/LB), Sumitomo Mitsui Banking Corporation (SMBC)
- Kansai Electric Power, Meridiam U.S., Allianz Capital Partners
- Societe Generale
- Mott MacDonald
Key information
NeuConnect Britain LTD
2670$m
21-07-2022
Power / Electricity transmission
Germany
Project & Infrastructure Finance
Equipment for a project
Project finance
New finance
Tranche information
UKIB Direct Loan
179$
DFI/MDB Direct Loan
179$m
Pound Sterling - GBP
150,000,000
29.0 years
-
-
160.0
Participant | role | ticket size |
---|---|---|
UK Infrastructure Bank (UKIB) | DFI/MDB direct lender | 179$m |
EIB Direct Loan
388$
DFI/MDB Direct Loan
388$m
Euro - EUR
380,000,000
29.0 years
-
-
140.0
Participant | role | ticket size |
---|---|---|
European Investment Bank (EIB) | DFI/MDB direct lender | 388$m |
JBIC EUR Direct Loan
159$
ECA-Direct Loan
159$m
Euro - EUR
150,000,000
29.0 years
-
-
140.0
Participant | role | ticket size |
---|---|---|
Japan Bank for International Cooperation (JBIC) | ECA direct lender | 159$m |
JBIC GBP Direct Loan
323$
ECA-Direct Loan
323$m
Pound Sterling - GBP
270,000,000
29.0 years
-
-
160.0
Participant | role | ticket size |
---|---|---|
Japan Bank for International Cooperation (JBIC) | ECA direct lender | 323$m |
Term Loan
1,619$
Term Loan
1619$m
US Dollar - USD
0
29.0 years
-
-
140.0
Participant | role | ticket size |
---|---|---|
Allied Irish Banks (AIB) | Lender | 102$m |
Ampega | Lender | 102$m |
Bank of China | Lender | 85$m |
BayernLB | Lender | 85$m |
CaixaBank | Lender | 85$m |
Credit Industriel et Commercial (CIC) | Lender | 85$m |
DZ Bank | Lender | 85$m |
Lloyds Bank | Lender | 102$m |
Mizuho | Lender | 85$m |
Nippon Life | Lender | 102$m |
Norddeutsche Landesbank (NORD/LB) | MLA | 85$m |
Rabobank | Lender | 85$m |
Shinsei Bank | Lender | 85$m |
Siemens Bank | Lender | 85$m |
Societe Generale | Lender | 85$m |
Sumitomo Mitsui Banking Corporation (SMBC) | MLA | 85$m |
Sumitomo Mitsui Trust Bank (SMTB) | Lender | 85$m |
The Norinchukin Bank | Lender | 102$m |