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Saturday, 24 August 2019

Australia/New Zealand Loan House

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Australia and New Zealand Banking Group outperformed competitors in its home market in 2018 with leading roles in the biggest leveraged buyouts and infrastructure financings of the year.

The bank topped the league table with more than 50 syndicated deals in Australia and New Zealand during IFR’s review period, underwriting over A$17bn (US$12.3bn).

“Event-driven financing activity is a key focus for ANZ and our ability to leverage our long standing client relationships across both issuers and investors meant we could deliver large-scale timely solutions,” said Christina Tonkin, head of loans & specialised finance, institutional at ANZ.

The A$1.475bn financing for Beach Energy’s purchase of Lattice Energy in late 2017 was a particular highlight, showcasing ANZ’s ability to underwrite a transformational acquisition financing before bringing in 14 other banks.

ANZ was also involved in the US$1.364bn senior loan to back Adaro Energy and EMR Capital’s US$2.25bn purchase of the Kestrel coal mine as part of Rio Tinto’s divestment of its Australian coal assets. That deal was syndicated to seven banks.

It was also part of the arranger group for the A$911m-equivalent refinancing for Spotless Group and the A$400m refinancing for Downer EDI after Downer EDI acquired a majority stake in Spotless. Nine banks joined the Downer EDI deal while 10 participated in the Spotless deal.

On the infrastructure front, the A$3.5bn financing for a A$6bn tunnels-and-stations package for the mega A$11bn Melbourne Metro Tunnel project, which includes the construction of a nine-kilometre tunnel and five underground stations, was a headliner. ANZ was an active MLAB on the coveted government-owned project financing, which attracted 16 incoming lenders.

ANZ was also part of a large group of banks that provided a A$1.1bn bridge loan and A$4bn refinancing to support Transurban Group and its partners on the purchase of 51% of WestConnex, another high-profile privatisation, in September. The A$4bn deal will replace the A$1.1bn bridge and existing debt for the M4 West and M4 East motorways, and provide the remaining construction costs for M4 East.

During a slower year for the Australian property market, ANZ snagged sole MLAB and underwriter roles on marquee deals, including the A$880m refinancing for Brookfield Place in Perth, the largest sole underwritten deal in the first three quarters of 2018, the A$542.3m amend and extend for Schwartz Family and a A$405m refinancing for SB&G Hotel Group’s Watermark hotel portfolio.

The bank was also a lead on the A$1.102bn deal for Brookfield’s Wynard Place development and an arranger for corporate deals such as the Scentre Group refinancing, which was increased to A$900m from A$500m after 11 banks joined, Vocus Group’s A$1.417bn-equivalent facility and Fortescue Metals’ US$1.4bn loan, used to redeem part of a bond.

To see the digital version of this review, please click here .

To purchase printed copies or a PDF of this review, please email gloria.balbastro@tr.com .

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