Allen & Overy (A&O) has advised the lenders (Citibank N.A., KfW IPEX-Bank, Standard Chartered Bank, Bank of China Limited, DBS Bank Ltd., Investec Bank Plc and Cathay United Bank (the Lenders)) in relation to the AUD398m (approximately USD300m) project financing of the development of the Victoria International Container Terminal (VICT) in Melbourne, Australia for Philippines port operator International Container Terminal Services, Inc. (ICTSI). 
ICTSI is one of the world’s largest maritime terminal operators with operations in Asia Pacific, Africa, Americas and Europe, and VICT is ICTSI’s first investment in Australia, having won the 26 year concession from the state-owned Port of Melbourne Corporation. VICT is responsible for the design, construction, commissioning, operation, maintenance and financing of the Port of Melbourne’s new international container terminal and empty container park at Webb Dock.
 
The facilities included commercial and Export Credit Agency -covered tranches, with Finnvera (Finland’s official export credit agency) providing the ECA guarantee.
 
David Christensen, A&O partner who advised the lenders commented: “Unusually for the Australian infrastructure sector, the financing involved an ECA-backed multi-tranche structure.” He added: “This deal offers debt facilities of up to 16 years, much longer than the tenor traditionally offered in Australia. It was also noteworthy in that it highlights the ability of an international lending group, with appropriate international and local advice, to finance Australian greenfield infrastructure without the halo effect that participation by the dominant Australian domestic banks typically brings. A&O’s international team and experience played a major role in helping the lenders bridge the gap between international and Australian project financing structures.”
 
The core A&O team advising the Lenders was led by Australian banking partner David Christensen and included senior associates James Gibson and Simon Hayes and lawyers Matthew Del Rosso, Li Lin and Anastasia Mihailidis. Partner Jason Huinink and senior associate Elly Ko advised the Citibank agency, security trustee and account bank divisions.  Senior associate James Barton provided hedging advice. Amsterdam partner Niels de Ru and his team advised in relation to Dutch law aspects.