International Power (LSE: IPR) announced that, together with its partners, it has completed a £235m (A$425) project refinancing for the 687km SEA Gas pipeline, which links Victoria and South Australia. The new financing replaces the existing financing and will run until October 2012.
International Power plc is an independent electricity generating company with 32,949MW gross in operation and 3,330MW gross under construction. International Power has power plants in operation or under construction across the world including Australia, North America, the United Kingdom, Europe, the Middle East and Asia.
The 687km SEA Gas pipeline natural gas pipeline runs from the Iona Gas Plant in Victoria to the Pelican Point Power Station at Port Adelaide. It connects Adelaide's gas supply to Melbourne and Sydney's, thus increasing the security of natural gas supply to Adelaide.
The new financing facility has been provided by a syndicate of international banks, consisting of Australia and New Zealand Banking Group, Commonwealth Bank of Australia, WestLB, National Australia Bank, Fortis Bank, Oversea-Chinese Banking Corporation and Investec Bank.
Through the partnership, International Power owns 33.3% of the 687km SEA Gas pipeline. The other partners in this project are the Retail Employees Superannuation Trust and the Australian Pipeline Trust, who also own 33.3% each.