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Inroads for first stage of major state project
Refinancing has been cemented for Stage 1 of Sydney’s Westconnex Motorway.
Melissa Coade
Firms: King & Wood Mallesons (bank syndicate); Ashurst (Sydney Motorway Corporation); Clayton Utz (Roads and Maritime Services)
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Deal: Financing for Stage 1 of the Westconnex Motorway has been finalised.
Value: $1.73 billion
Area: Finance, infrastructure
Key players: The King & Wood Mallesons (KWM) team advising the bank syndicate on the deal was led by infrastructure team partners Rebecca Finkelstein (pictured) and Mark Upfold.
Partners from other practice groups in the firm also assisted with the deal, including construction partner Scott Budd and derivatives partner Anne-Marie Neagle.
Deal significance:
Refinancing of Stage 1 of the Sydney Westconnex Motorway project has been finalised by a syndicate of banks to the tune of $1.73 billion.
The syndicate comprises Commonwealth Bank of Australia; Credit Agricole CIB Australia Limited; ING Bank (Australia) Limited; ING Bank N.V., Singapore Branch; National Australia Bank; Natixis, Hong Kong branch; and Westpac Banking Corporation.
Ultimately, the major NSW motorway project will construct 30 kilometres of road, linking Sydney’s west and south west to the city, airport and port.
Stage 1 of the project will involve the development of a 5.5 kilometre tunnel, and widening of the existing M4 motorway from Parramatta Road to Haberfield.
Lead finance partner on the deal Rebecca Finkelstein said the efforts of the latest transaction have been part of a mega-billion-dollar capital-raising for the project. The same KWM team closed the financing for Stage 2 of the project last year.
“In the space of 12 months we are pleased that our infrastructure and finance teams have assisted the banks in helping Sydney Motorway Corporation meet its capital objectives by raising well over $3 billion in bank debt for the first two stages of the Westconnex project,” Ms Finkelstein said.
According to Mark Upfold, leader of KWM’s infrastructure group, the successful close of Stage 1 showcased the firm’s ability to leverage its multidisciplinary teams.
“Stage 1 was an example where our finance, derivative, environment and planning, construction and procurement experts were mobilised and closed the project financing inside a challenging three-month period,” Mr Upfold said.
