Adia consortium to invest A$10.3 billion in Australia’s TransGrid electricity network

A consortium including Abu Dhabi Investment Authority will invest A$10.3 billion (Dh27.42bn) in one of Australia’s biggest utilities.

The deal involves a 99-year lease on the TransGrid electricity network in New South Wales.

The winning group that took control of TransGrid was led by the Canadian pension fund Caisse de depot et placement du Quebec, which has a 25 per cent stake.

Adia, through its Tawreed Investments unit, has a 20 per cent stake. Meanwhile, Hastings Fund Management has 20 per cent, while Kuwaiti investors have 20 per cent and Spark Infrastructure has 15 per cent, according to the Australian government.

“We believe there is potential for the delivery of further sustainable efficiencies which can be shared with the people of NSW and in particular, customers of TransGrid,” said Rick Francis, managing director and chief executive of Spark Infrastructure.

The sale comes as Australia is in the midst of trying to raise A$20bn for new railways, roads, schools and hospitals.

Foreign acquisitions of Australian companies have almost doubled this year and competition for ports, power grids and desalination plants is intensifying as bidders are drawn to the country’s relative stability.

The winning group will borrow A$5.5bn to A$6bn from about 10 banks through a combination of bridge financing, bonds and bank loans, Bloomberg News reported, citing people with knowledge of the matter.

The banks include Australia & New Zealand Banking Group, Commonwealth Bank of Australia, DBS Group Holdings, United Overseas Bank and Westpac Banking, according to the people, who asked not to be identified discussing private information.

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