King & Wood Mallesons (KWM) has acted for the lenders to raise $2.5 billion of bank debt to bring the next stage of Sydney Metro, Australia’s largest public transport project, to financial close.
Acting for a syndicate of 13 financiers (ANZ, Crédit Agricole CIB, HSBC, ING, Intesa Sanpaolo, KfW, Mizuho, MUFG, NAB, OCBC, SMBC, UOB and Westpac), the transaction involved the refinancing of the existing Metro North West PPP debt as well as raising additional funds for the Sydney Metro City and Southwest PPP.
With the Sydney Metro City and Southwest PPP having a total project value of $3.7 billion, the remaining funds came from equity investments by MTR, Caisse de dépôt et placement du Québec, Marubeni, Plenary and Pacific Partnerships.
The project will include the delivery of 23 new metro trains and core rail systems as well as operations and maintenance. Once complete the service will cover a dedicated 66km line with 31 stations from Tallawong to Bankstown.
KWM’s deal team was led by projects partner, Claire Rogers. Claire was supported by senior associates, Amy Maguire, Chris Allfrey and Catherine Danne and solicitors, Travis Irons and Maclean Greedy.
Commenting on the transaction, Claire Rogers said: “This successful result is due to the combined efforts of a number of parties and demonstrates the viability of the Sydney Metro project to both lenders and government. There was significant interest in funding the next stage of the project that will ultimately deliver significant benefits to the community and government.”
Construction work on the Sydney Metro City and Southwest project is underway and the line is expected to be operational from 2024. KWM has a market leading track-record advising on rail and rail infrastructure projects. Recent examples include the Plenary-led High Capacity Metro Trains PPP and the Gold Coast Light Rail.