AUSTRALIAN power-distributor United Energy has authorised ANZ and UBS Australia to arrange a A$575 million (about HK$3.17 billion) loan, according to ANZ's chief manager, institutional banking, Graeme Riley. He said UBS and ANZ were arranging a revolving credit facility for the borrower, which distributes electricity to Melbourne's southeast suburbs. A revolving credit allows the borrower to draw on the facility as needed, rather than drawing the full amount immediately and then embarking on repayments. United Energy is the first of five electricity distribution firms to be privatised as part of Victoria's electricity industry reforms. Peter Lowe, chief finance officer at United Energy, said the loan proceeds would refinance debts to Treasury Corp of Victoria - the borrowing arm of the Victorian state government. Under the reforms, Treasury Corp of Victoria will no longer fund the electricity industry. An arranger said the final structure and maturity was not finalised. It is understood to be the first step in putting the distribution network on a commercial footing ahead of a sale. Last year the Victorian Government broke up the State Electricity Commission into 12 companies - five generators, five distributors, a transmission company and a pool company. In a report, BZW Australia said Victoria could raise about $3 billion from the sale of five electricity distribution companies, Australia's largest privatisation programme. BZW Australia has prepared earnings, cash flow and balance sheet models for each. United Energy is the first distribution company in the state scheduled to go on the auction block this year.