Perfect 10 winners 2018: Export finance
This year's winners of the TXF Perfect 10 Export Finance Deals of the Year beat a lot of worthy contenders. Read on to find out why...
From large-scale multisourced financings in the renewables sector in Europe, to a 4G network expansion across India, and an inaugural sustainability-linked deal in the Ivory Coast for a water supply plant, TXF’s Perfect 10 Deals of the Year comprise only landmark financings within the export finance community in 2018.
Half of TXF’s Perfect 10 Deals of the Year 2018 took place in the oil and gas sector, with several viable financing templates emerging for both serial and debut ECA-backed borrowers from around the world.
But the most prevalent theme across last year’s award winning deals was the record-low pricing under the ECA debt portions, with margins ranging from 70bp to 300bp, and even as low as 82bp all-in. This was good news for ECA-backed borrowers as such low pricing has firmly placed ECA finance as an attractive instrument in their financial toolkit. But with ECA premiums often expected to be paid upfront for the maturity of large project loans, ECA tranches were in some cases cut bank by sponsors, especially when the uncovered tranches came in cheaper.
Please download TXF's Perfect 10 2018 report in pdf form here.
Overall ECA finance Deal of the Year: DUQM refinery
Despite an uncertain economic backdrop, sponsors of the DUQM refinery forged the first venture of its kind and successfully closed the largest project financing in the EMEA region in 2018 as well as the largest ever project financing in the Sultanate of Oman. The project marks an important milestone in the diversification of Oman’s economy.
Sponsors: Oman Oil, Kuwait Petroleum International
Debt: $4.61 billion
Tenor: 17 years
Pricing: CESCE tranche 150bp, UKEF tranche 100bp, Commercial bank tranche 225bp
Financial close: 1 November 2018
ECAs: CESCE, KEXIM, UKEF
DFI: KDB
MLAs: BNP Paribas, Credit Agricole, Credit Suisse, HSBC, Intesa Sanpaolo, KfW IPEX, MUFG, Natixis, Santander, Societe Generale
Financial advisor: Credit Agricole, Greengate
Banks: Ahli Bank Oman, Ahli United Bank, Apicorp, Banca IMI, Bank Dhofar, Bank Muscat, Bank Sohar, Boubyan Bank, Commercial Bank Of Kuwait (CBK), ICBC, Intesa Sanpaolo, Korea Development Bank (KDB), Kuwait Finance House, National Bank of Kuwait, National Bank of Oman, Qatar National Bank ( QNB Group ), Standard Chartered, Sumitomo Mitsui Banking Corporation (SMBC), UBI Banca - Unione di Banche Italiane, Warba Bank
Legal (borrower): Allen & Overy
Legal (lender): Latham & Watkins
Best Middle East ECA-backed Deal of the Year: MIDOR oil refinery
Aimed at reducing Egypt’s dependency on refined oil products the project pushed through adversity to achieve a sovereign guarantee from the Egyptian ministry of finance. Its success marks the harmonisation of two nations.
Sponsor: Middle East Oil Refinery Company (MIDOR)
Exporter: Technip Italy
Debt: $1.2 billion
Tenor: 13.6 years
Pricing: 508bp
Financial close: 14 October 2018
ECAs: SACE
MLAs: BNP Paribas Fortis, Cassa Depositi e Prestiti, Credit Agricole
Financial advisor: National Bank of Egypt, First Abu Dhabi Bank
Legal (borrower and guarantor): Dechert; Zaki Hashem & Partners
Legal (lender, SACE and SIMEST): Shalakany; Shearman & Sterling
Best ECA-backed Oil and Gas Deal of the Year: TAP
The largest project financing for European infrastructure in 2018 and an important string in the bow of the wider Southern Gas Corridor scheme. The TAP project will offer a new source of competitively priced gas marking a key shift away from Russian oil and gas dependence.
Sponsors: BP, SOCAR, Statoil, Fluxys, Total, E.ON, Axpo
Debt: $4.25 billion
Tenor: 16.6 years
Financial close: 7 December 2018
ECAs: Bpifrance, Euler Hermes, SACE
DFI: EBRD, EIB
Financial advisor: Societe Generale
Banks: Bank of China, BNP Paribas, CaixaBank, Credit Agricole, Helaba, ING Bank, Intesa Sanpaolo, Korea Development Bank (KDB), Mizuho, MUFG, Natixis, Siemens Bank, Societe Generale, Standard Chartered, SMBC, UBI Banca - Unione di Banche Italiane, UniCredit
Legal (borrower): Allen & Overy
Legal (lender): Clifford Chance
Best European/Eurasian ECA backed Deal of the Year: Lukoil Overseas Uzbekistan
The first transaction in which South Korean ECA K-sure provided direct support to a Russian sponsor, the pathfinder deal enabled Lukoil to tap into the Asian financial market as well as opening up future opportunities for Korean exporters.
Sponsor: Lukoil Overseas Uzbekistan
Exporter: Hyundai Engineering
Debt: $660 million
Tenor: 11 years
Financial close: 19 April 2018
ECAs: K-Sure
Banks: Deutsche Bank, ING, UniCredit
Legal (borrower): Akin Gump Strauss Hauer & Feld
Legal (lender): Allen & Overy
Best Americas ECA finance Deal of the Year: PetroPeru Talara refinery
Despite a period of political uncertainty both in Peru and Spain, PetroPeru’s Talara refinery expansion closed the largest ECA financing in Peru’s history. The record-breaking financing was also the largest transaction ever covered by Spain’s CESCE.
Borrower: PetroPeru
Debt: $1.3 billion
Tenor: 13 years
Pricing: 270bp
Financial close: 31 January 2018
ECAs: CESCE
MLAs: BBVA, BNP Paribas, Citi, Deutsche Bank, HSBC, JP Morgan, Santander
Legal (borrower): Skadden, Arps, Slate, Meagher & Flom
Legal (lender): Allen & Overy
Best ECA-backed African Deal of the Year: Senelec
From ironing out internal legal procedures for smoother public sector procurement, to sealing a landmark deal for Senegal’s energy transportation and distribution network expansion, state-owned Societe d'Electricite du Senegal's (Senelec) debut ECA-backed loan in 2018 – a €220 million ($247 million) Bpifrance-backed buyer’s credit facility – has provided a viable financing template for future Senegalese projects.
Borrower: Senelec
Debt: €220 million ($247 million)
Tenor: 12 years
Pricing: 204bp fixed rate
Financial close: 31 January 2018
ECAs: Bpifrance
Exporters: Vinci Energies; Cegelec Maroc
MLAs: Banque Internationale pour le Commerce et l'Industrie du Sénégal Société Anonyme (BICIS), BNP Paribas, Bpifrance Financement, and Credit Agricole CIB
Legal advisors: Hogan Lovells; Mame Adama Gueye & Associes (MAGA)
Best Asia-Pacific ECA finance Deal of the Year: VinFast
Vietnam witnessed its inaugural ECA-backed corporate deal in 2018 after automotive start-up, VinFast, made a strongly priced debut in the ECA market.
Sponsor: VinFast
Debt: $950 million ECA-backed buyer’s credit facility
Tenor: 12 years
Pricing: 75bp excluding Hermes premium
Financial close: 25 September 2018
ECA: Euler Hermes
Lead arranger: LBBW
MLAs: HSBC, Credit Suisse
Legal (borrower): Norton Rose Fulbright
Legal (lenders): Allen & Overy
Best ECA Telecoms Deal of the Year: Reliance Jio Infocomm
Reliance Jio Infocomm drew on its strong relationship with K-sure to close a tightly priced $1 billion ECA-backed loan in under three months to fund its expansion of a pan-India 4G network.
Borrower: Reliance Jio Infocomm
Exporters: Samsung Electronics; Ace Technologies
Debt: $750 million
Tenor: 12 years
Pricing: 82bp all-in
Financial close: 22 June 2018
ECAs: K-sure
Facility agent: HSBC
MLAs: ANZ, BNP Paribas, Commerzbank, Credit Agricole Corporate and Investment Bank, HSBC, ING Bank, JP Morgan, Mitsubishi UFJ Financial Group (MUFG), Mizuho, Nonghyup Bank, Santander, Sumitomo Mitsui Banking Corporation (SMBC)
Legal advisors(s): Bae, Kim & Lee; Baker & McKenzie; Juriscorp; Milbank,Tweed, Hadley & McCloy
Best Sustainable ECA-backed Deal of the Year: MoEF Ivory Coast
Winning TXF’s Best Sustainable ECA-backed deal of the year award, the Ministry of Economy and Finance (MoEF) of the Republic of Ivory Coast sealed a sustainability-linked DFI/ECA-backed facility for a water supply plant in Abidjan, the first such deal in the West African country.
Borrower: Ministry of Economy and Finance of the Republic of Ivory Coast
Contractors: PFO Africa; Veolia Africa
Debt: €253 million ($280 million)
Tenor: 3, 7, and 12 year tranches
Financial close: 18 December 2018
ECA/DFIs: Bpifrance A.E and West African Development Bank
Facility agent: Societe Generale
MLAs: Bpifrance and Societe Generale
Legal advisors (lenders): Herbert Smith Freehills
Best ECA-backed Renewables Deal of the Year: Hornsea 1
TXF’s Best ECA-backed Renewables Deal of the Year, Global Infrastructure Partners' (GIP) EKF-backed acquisition loan for a stake in the Hornsea 1 offshore wind project in the UK, has introduced a new asset class to institutional investors – with significant construction risk.
Borrower: Global Infrastructure Partners
Debt: £3.6 billion ($4.6 billion)
Tenor: 17-year-six-month
Financial close: 26 November 2018
ECA: EKF
Financial advisor: Citi
Facility agents: RBS/Natwest, IFC, Proparco
MLAs: ABN AMRO, Banca IMI, Barings, BNP Paribas Fortis, Citi, Credit Agricole CIB, ING Bank, KfW IPEX-Bank, Legal & General Investment Management, Lloyds Bank, M&G Investments, Macquarie Capital , Mizuho, MUFG Bank, NatWest, Pension Insurance Corporation, PFA (Pension Forsikrings Aktieselskab), Santander, Scottish Widows, Siemens Bank, Societe Generale, Sumitomo Mitsui Banking Corporation (SMBC), Sun Life Investment Management, TD Asset Management, The Norinchukin Bank, Vantage Infrastructure, Westbourne
Legal advisors: Allen & Overy; Slaughter & May; Watson, Farley & Williams and Clifford Chance
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