On 20 July 2016, Victoria International Container Terminal Limited (VICT), the Australian subsidiary of International Container Terminal Services Inc. (ICTSI), successfully closed an export credit agency-covered syndicated loan facility in an amount of A$398 million (approximately US$300 million) with seven leading global financial institutions, comprising Citibank N.A., KFW IPEX-Bank GmbH and Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners, Bank of China Limited, DBS Bank Ltd. and Investec Bank PLC as Mandated Lead Arrangers, and Cathay United Bank as Lead Arranger.
The alliance of Linklaters and Allens acted as the legal adviser to VICT as borrower and ICTSI as sponsor.
The newly-secured financing will support the on-going construction and development of Webb Dock at the Port of Melbourne, Australia – one of ICTSI's most anticipated container terminal projects, boasting a world-leading fully automated unloading and stacking system. ICTSI was able to secure favourable terms in a difficult market, with the support of an international bank group and the notable absence of a requirement for long-term contracted revenue streams.
The project marks ICTSI's first entry into the Australian market. The Philippine-based port operator started building the terminal in late 2014 and the project is planned for completion in two stages, with commercial operations expected to begin in the fourth quarter of this year for the first phase and in 2017 for the second.
James McLaren, Linklaters Banking and Projects partner based in Hong Kong commented:
'We are delighted to have supported the borrower and sponsor on this successful project financing. It represented a joint success for both Linklaters and Allens in facilitating the financing of a high-profile infrastructure project with a strong group of international banks and Finnvera, the Finnish Export Credit Agency. In a number of ways this transaction challenged the market for Australian infrastructure project financings, including the long tenor of debt made available by the participating banks.'
James Darcy, Allens lead partner said the project was an example of complex, cross-jurisdictional work where the advantages of a well coordinated, global team helped achieve a great commercial outcome for the client.
Allens legal team
James Darcy, Paul Telford and Mizu Ardra
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.