Engie seals TAG loan

Engie seals TAG loan

M&A Loans Project & Infrastructure Finance Debt Corporate & Sovereign Strategy Energy Gas Economy & Policy Brazil Europe Canada

A team led by France's Engie has secured a 10-year, $5.95bn loan from 10 lenders to fund the acquisition of the TAG natural gas pipeline in Brazil, LatinFinance has heard.

Engie and its partner, the Canadian pension plan Caisse de dépôt et placement du Québec (CDPQ), got BRL13.5bn ($3.51bn) in local currency with Banco do Brasil, Bradesco and Itaú as the joint lead arrangers. Engie and CDPQ also got $2.45bn in dollars from BNP Paribas, Crédit Agricole, ING, Mizuho, MUFG, Société Générale and SMBC, according to sources close to the deal.

Engie and CDPQ have signed the loan agreement and will receive the first disbursement once the acquisition goes through, sources said.

Brazil's state-owned energy company Petrobras announced last week that Engie and CDPQ had placed the winning bid to buy 90% of TAG for $8.6bn. Engie and CDPQ beat an offer from a team with Itaúsa and Singapore's GIC and another from Abu Dhabi's Mubadala and the US energy investor EIG Partners.

Petrobras previously named Engie as the winning bidder for TAG in May last year, but it suspended the sale after a court order in June. The state oil company reopened the bidding process in January this year.

Santander advised Petrobras on the sale, while Citi advised Engie and CDPQ.



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