Completed Commercial AidData Chinese Aid

ICBC contributes to a $4 billion syndicated bridge loan to CYPI for acquisition of Sempra Energy’s energy assets in Peru (Linked to Record ID#92569)

$1M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	China Yangtze Power International (Hong Kong) Co., Ltd. (CYPI)
Country	Peru
Start Date	Jan 01, 2020
End Date	Mar 15, 2028
Duration	2,996 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92569`

Grant Description

BOC and ICBC contribution to $4 million syndicated bridge loan to CYPI for acquisition of Sempra Energy’s energy assets in Peru On September 28, 2019, China Yangtze Power International (Hong Kong) Co., Ltd. (CYPI) — a subsidiary of China Yangtze Power Co., Ltd. and China Three Gorges Corporation — entered into an agreement with Sempra Energy International Holdings N.V. (‘‘Sempra Holding’’), a company wholly owned by Sempra Energy, to acquire Sempra Holding’s equity interest of 100% in Sempra Americas Bermuda Ltd. (‘‘SAB’’) and 50.00000069% in Peruvian Opportunity Company S.A.C. (‘‘POC’’) with a cash consideration of $3.59 billion (the ‘‘Acquisition Agreement’’).

SAB and POC collectively hold an 83.64% stake in a Peruvian company called Luz del Sur S.A.A.

CYPI set up Yangtze Andes Holdings Co., Limited (‘‘Yangtze Andes’’) in Hong Kong as the actual investment entity to undertake CYPI’s rights and obligations under the Acquisition Agreement.

Then, in January 2020, China Yangtze Power International (Hong Kong) Co., Ltd. (CYPI) signed a $4 billion bridge loan with Bank of China, the Industrial and Commercial Bank of China (ICBC), Santander, and MUFG to facilitate its acquisition of Sempra Energy’s power assets in Peru.

Bank of China's estimated contribution is captured via Record ID#92570 and ICBC's estimated contribution is captured via Record ID#92569. On April 24, 2020, the acquisition of SAB and POC was completed. Subsequently, China Three Gorges Corporation indirectly held 83.64% of the equity interest in LDS.

Yangtze Andes now holds 100% of equity interest in SAB and 50.00000069% in POC, and it indirectly holds 83.65% of equity interest in LDS.

The completion of this transaction triggered the mandatory obligation for CYPI to make a general offer of the remaining approximately 13.7% stake in LDS.

📋 Staff Comments

Sempra Americas Bermuda Ltd is now known as Andes Bermuda Ltd.
LDS is a company listed on the Bolsa de Valores de Lima, undertaking power distribution and sale businesses and possessing a number of hydropower assets. It is Peru’s largest power distribution company in terms of market share, accounting for approximately 27% in the local power distribution and sale market in 2019. It is primarily engaged in power distribution and sale in the Lima region. In addition to its power distribution business, LDS has hydro power generation assets with installed capacity exceeding 100 MW. LDS owns a permanent concession for power distribution in Lima, and its assets and investment returns are denominated in U.S. dollars (the investment return for the period from 2018 to 2022 is 12%). In 2019, LDS had 1.166 million users and an annual power distribution of 9.42 TWH. LDS also has a 100 MW hydropower power plant in operation, as well as hydropower reserve projects with a total installed capacity of approximately 737 MW.
BOC and ICBC’s contributions to the loan syndicate are unknown. For the time being, AidData assumes equal contributions ($1 billion) across the four members of the syndicate.

📚 Sources & References

Belt and Road Initiative to boost Chinese lending in LatAm
For access to our content, please go to https://www.euromoney.com/reprints
Links with China key for Latin America
China Yangtze Power Co.
Ltd. 2020 Annual Report
Garrigues Banking & Financing Latin America Guide 2023 Peru
Deals of the year 2020
Grace Ma
China Yangtze Power International’s $3.6 billion Acquisition of 83% Stake in Luz del Sur
Banking and Finance in Peru
Hallam Chow
第一观察丨习近平主席倡导“上海精神”的深意
Deals of the year 2019
Mayer Brown - Hallam Chow
Overall: Best BRI project or initiative 2020
THREE GORGES FINANCE I (CAYMAN ISLANDS) LIMITED
中国长江电力股份有限公司关于南美配电项目引入联合投资人暨关联交易公告
中国长江电力股份有限公司 2022 年面向专业投资者公开发行绿色公司债券（第二期）（可持续挂钩）募集说明书
Best bank for leveraged finance 2020
Luz del Sur S.A.A. Memoria Anual 2020
Luz del Sur S.A.A. Memoria Anual 2022
China Outbound Deals Award 2024
中企出海杰出交易 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

China Yangtze Power International (Hong Kong) Co., Ltd. (CYPI)

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