ICBC contributes to accounts receivables financing facility arrangement for Roan Tailings Reclamation (RTR) Project (Linked to Record ID#98642)

📋 Staff Comments

1. The Chinese project title is RTR项目.
2. China Eximbank and ICBC likely signed an accounts receivable transfer agreement with CNMC to provide financing for the construction period of the project. In this type of arrangement, the exporter (seller) procures insurance from an insurer and transfers its accounts receivable under the insurance policy to a bank. The bank then grants financing to the exporter (seller) and becomes the insured under the transferred insurance policy. When an insured loss occurs, the insurer pays indemnity to the financing bank pursuant to the insurance policy and the Accounts Receivable Transfer Agreement.
3. In a typical receivables financing agreement (or deferred payment agreement), the company that the project owner in the host country has selected as its engineering, procurement, and construction (EPC) contractor is also a lender to the project owner. The company assigns receivables under its EPC contract with the project owner to one of or more banks. Upon assignment of receivables, the bank or banks will release funds to the company so it can discharge its obligations under the receivables financing agreement as a lender. Receivables financing is also known as accounts receivable financing (finance) or A/R financing (finance) or 应收账款融资 (in Chinese). These other terms are used because the accounts receivable of a company (i.e., unpaid invoices) are being used as collateral to unlock working capital—typically in the form of a bank loan (‘receivables loan’). Sellers often face cash flow problems when their buyers do not make full payment at the due date of the invoice. A receivables financing arrangement addresses this problem by allowing them to sell their outstanding invoices to a bank at a discounted rate. This approach allows the seller to receive the remaining invoice amount before the due date of the invoice. The bank either gets its money back at invoice maturity through the seller (acting as a collecting agent) or directly from the debtor.
4. Several sources refers to the monetary value of the accounts receivable financing facility as $700 million. For the time being, AidData assumes that 85% of the cost of the $654,233,791 EPC contract was financed through the accounts receivables financing facility agreement. This issue warrants further investigation.
5. The individual contributions of ICBC and China Eximbank to the syndicated loan are unknown. Assuming that 85% of the cost of the $654,233,791 EPC contract was financed through the accounts receivables financing facility agreement, for the time being, AidData assumes equal contributions ($278,049,361.17) across all 2 known members of the syndicate.
6. The precise dates on which the accounts receivables financing facility agreement and the deferred payment/on-lending agreement were signed are unknown. For the time being, AidData relies on the project implementation start date (February 2017) as a proxy for the official commitment date. This issue warrants further investigation.

📚 Sources & References

• 原 挺 Resume
• Resume 原挺北京办公室 权益合伙人
• 中色股份成功签署刚果（金）RTR项目EPC总承包合同
• Martin McCann Resume
• 刚果（金）在建项目RTR新进展
• 中色股份与欧亚资源签订刚果金RTR项目总承包合同
• 中国有色金属建设股份有限公司 签署重大合同的公告
• Cross-border financing report: China
• METALKOL RTR (THE ROAN TAILINGS RECLAMATION)
• DEMOCRATIC REPUBLIC OF CONGO CONGO’S VICTIMS OF CORRUPTION
• NFC Signs EPC Contract of DRC RTR Project
• Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing
• Sinosure to provide the insurance, 【企业动态】中色股份承建刚果（金）RTR项目创1000万工时安全无损新纪录
• Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing
• Sinosure to provide the insurance
• Eurasian Resources Group takes part in the meeting with Premier of the Republic of China, unveils joint projects and initiatives in metals & mining and infrastructure
• ENRC’s History Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.