[Disbursed] ICBC Almaty contributes to $500 million disbursed of $1 billion syndicated loan — via PxF facility — to KAZ Minerals Finance PLC for general corporate purposes in December 2012

📋 Staff Comments

1. A pre-export finance (PXF) facility an arrangement in which a commodity (e.g. oil) producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed.
2. The sizes of the individual contributions of Bank of China, ICBC (London) PLC, and ICBC (Almaty) JSC to the lending syndicate are unknown. For the time being, AidData assumes equal contributions across all 15 members of the syndicate ($66,666,666).
3. For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
4. KAZ Minerals plc is a British copper company focused on large scale, low cost open pit mining in Kazakhstan. The Group is listed in London and Kazakhstan stock exchanges.
5. The agent for the transaction was Deutsche Bank AG and the security trustee was ING Bank.
6. The bank account pledge agreement can be accessed in its entirety via https://www.dropbox.com/s/emfjlvw9dp2tnb3/Bank%20Account%20Pledge%20Agreement%20for%202012%20Kaz%20Minerals%20PxF%20Facility%20Agreement.pdf?dl=0.
7. The trader assignment agreement can be accessed in its entirety via https://www.dropbox.com/s/0fwapxcvbhfbslv/Trader%20Assignment%20Agreement%20for%202012%20Kaz%20Mineral%20PxF%20Facility%20Agreement.pdf?dl=0.
8. The facility in this record was later revised to $349 million after Kazakhmys group restructuring. This loan is marked as umbrella and not recommended for aggregates to avoid double counting. See record IDs #108644 and #96386 for Chinese bank contributions to the $349 million facility.

📚 Sources & References

• Annual Report and Accounts 2014
• Annual Report and Accounts 2015
• Bank Account Pledge Agreement
• IJ 2008
• KAZ Minerals SHAREHOLDER CIRCULAR 23 July 2014
• Kazakhmys - pre-export finance
• Kazakhmys Additional Facility 2014
• KAZAKHMYS ANNOUNCES THE SIGNING OF AN AMENDMENT TO ITS EXISTING PRE-EXPORT FINANCE DEBT FACILITY
• Kazakhmys plc : - Replacement Pre-Export Finance Debt Facility
• KAZAKHMYS PLC AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
• Kazakhmys secures replacement pre-export finance debt facility
• Kazakhmys: Signing of an amendment to existing PXF
• Trader Assignment Agreement 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.