TransGrid Receives $300m from Export Development Canada

TransGrid has announced the establishment of a new $300m seven year bank debt facility with Export Development Canada (EDC).

The new facility combines highly competitive financing terms with a long tenor, extending the average duration of our debt portfolio. Proceeds will be applied to refinance the remaining $300m balance of our term debt facility that matures in June 2021.

Commenting on the transaction, TransGrid CFO Jason Conroy said, "We wish to thank EDC for their continuing support and look forward to a long term relationship with them as we grow our business."

TransGrid was advised on the transaction by RBC Capital Markets and King Wood Mallesons.

TransGrid operates and manages the high voltage electricity transmission network in NSW and the ACT, connecting generators, distributors and major end users.

Its network is the backbone of the National Energy Market, enabling energy trading between Australia’s three largest states along the east coast and supporting the competitive wholesale electricity market. This allows energy consumers to gain access to the lowest cost generation available.

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, it equips Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying all support is a commitment to sustainable and responsible business.

In January 2019, EDC released its Climate Change Policy which articulates our support for the Paris Climate Change Agreement, recognizes EDC's mandate to support and develop Canada's export trade and Canadian capacity to engage in that trade, as well as acknowledges that EDC can contribute to the Paris Agreement's aims through our business decisions.

One of the key commitments in that policy aims to increase EDC's business focused on clean and low carbon technology. EDC is Canada's single largest financier of clean technology, facilitating over $9 billion in Canadian cleantech since 2012.