Deal details

Champlain Hudson Power Express Project Financing

Description

Transmission Developers Inc., a Blackstone portfolio company, is developing Champlain Hudson Power Express (“CHPE”), a 1,250 MW, electric power transmission line. CHPE will run 339-miles from the Canadian border to Astoria, Queens and will transport 10.4 TWh/year of renewable hydropower to NYC upon completion. The project is fully contracted for 40 years with Hydro-Quebec. Hydro-Quebec in turn has executed contracts with NYSERDA for the delivery of power and renewable energy credits.The rationale for the nomination for Proximo DoY 2022 award is that CHPE is a marquee project for New York. It will provide significant environmental benefits to New York and play a critical role in New York achieving its ambitious renewable energy targets. Renewable energy delivered by CHPE will comprise ~25% of total NYC energy demand and will decrease carbon emissions by ~3.9 MM metric tons per year and harmful local air pollutants by ~20% – equivalent to removing 44% of passenger vehicles from NYC.Additonally, CHPE is among the largest and most prominent project financings closed in 2022. CHPE has been under development by Transmission Developers Inc. for over 10 years - financial close and commencement of construction represent major milestones for the sponsors, New York, and other parties involved.

Assets involved

Companies involved

  • Mizuho, Societe Generale, MUFG, Canadian Imperial Bank of Commerce (CIBC)
  • Mizuho, Societe Generale, Canadian Imperial Bank of Commerce (CIBC), MUFG
  • Fifth Third Bank, Citi, KfW IPEX-Bank, MUFG, Credit Agricole CIB, Bank of China, Banco Sabadell, Allied Irish Banks (AIB), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada, HSBC, National Westminster Bank, Mizuho, Truist Bank, Standard Chartered, The Fédération des caisses Desjardins du Québec, ING Bank, Royal Bank of Canada, CoBank, Santander, Apple Bank for Savings, Toronto-Dominion Bank, Societe Generale, Korea Development Bank (KDB), Morgan Stanley
  • National Bank of Canada, Santander, KfW IPEX-Bank, Toronto-Dominion Bank, CoBank, Truist Bank, HSBC, The Fédération des caisses Desjardins du Québec, Fifth Third Bank, Royal Bank of Canada, ING Bank
  • Hydro Québec
  • Mizuho, MUFG, Canadian Imperial Bank of Commerce (CIBC), Societe Generale
  • Blackstone Group
  • MUFG
  • Hitachi, NKT, Kiewit Power Constructors
  • Korea Development Bank (KDB), Standard Chartered, Credit Agricole CIB
  • MUFG
  • MUFG
  • Mandy McNeil
  • Morgan Stanley
  • Societe Generale
  • Kirkland & Ellis
  • Marsh
  • Norton Rose Fulbright

Key information

CHPE LLC

5645$m

28-10-2022

Power / Electricity transmission

Canada

Project & Infrastructure Finance

Not PPP

Tranche information

Letter of Credit

400$m

US Dollar - USD

0

7.0 years

-

-

175.0

Term Loan

5245$m

US Dollar - USD

0

7.0 years

-

-

175.0