ICBC provides $109.9 million buyer’s credit loan for Moanda Metallurgical Complex Construction Project

ICBC provides $109.9 million buyer’s credit loan for Moanda Metallurgical Complex Construction Project On September 10, 2010, the Industrial and Commercial Bank of China (ICBC) and BNP Paribas signed a $157 million buyer’s credit loan agreement with Compagnie Minière de l'Ogooué (Comilog) S.A. -- a special purpose vehicle that is 63.7% owned by Eramet International S.A. (a French mining and metallurgical company), 28.9% by the Government of Gabon, 7.0% by Carlo Tassara France and 0.3% by other investors -- for the Moanda Metallurgical Complex Construction Project.

The Government of Gabon holds a 28.9% ownership stake in Comilog.

The Government of Gabon issued a sovereign guarantee for 25% of the face value of the loan on July 14, 2011, while Eramet issued a corporate guarantee for the remaining 75% of the face value of the loan.

The first loan disbursement was scheduled for April 2011, and principal repayments were scheduled over 16 equal and consecutive semi-annual installments (which implies a 3.5-year grace period).

The borrower was expected to use the proceeds of the loan to partially finance a commercial contract between Comilog S.A. and China Tianchen Engineering Corporation (TCC), which was signed in December 2009.

ICBC agreed to provide 70% of the financing ($109.9 million) while BNP Paribas agreed to provide the remaining 30% ($47.1 million). BNP Paribas, as the implementing agency, would act as mandated lead arranger, facility agent and security agent.

The project involved the construction of the Moanda Metallurgical Complex (CCM) near the town of Moanda within Haut-Ogooué Province in south-east Gabon.

The complex consists of two plants: a silico-manganese plant with a production capacity of 65,000 tons (which has been operational since August 2014) and a metal manganese plant with a production capacity of 20,000 tons (which has been operational since January 2015). TCC was the EPC contractor responsible for project implementation.

Construction began in April 2009, and the President of the Republic of Gabon Ali Bongo Ondimba inaugurated the CCM on June 12, 2015.

This $400 million project was initiated as part of a partnership between Eramet and Gabon’s state-owned mining company Société Equatoriale des Mines (SEM).