CDB provides $500 million framework (term facility) agreement to Development Bank of Kazakhstan for on-lending and mutually beneficial investment projects (Linked to Record ID#92608)

CDB provides $500 million framework (term facility) agreement to Development Bank of Kazakhstan for on-lending and mutually beneficial investment projects On June 6, 2018, the Development Bank of Kazakhstan (DBK) signed a $500 million framework (or term facility) agreement with China Development Bank for on-lending to customers and in projects that mutually benefit Kazakhstan and China in certain economic sectors supported by the Government of Kazakhstan, including, but not limited to, the oil gas, chemical, mineral, electricity, transportation, infrastructure, agriculture, communication, manufacturing and industrial park sectors (as captured via Record ID#70742).

The term facility matures in 10-years from the draw down date under each subsidiary loan agreement. As at June 30, 2019, there were no amounts outstanding under the term facility agreement.

However, on June 4, 2021, the Development Bank of Kazakhstan (DBZ) and China Development Bank CDB) signed a $217 million loan agreement for a Gold Ore Processing Facility Construction Project (as captured via Record ID#92608).

This loan was issued as a subsidiary loan under the June 6, 2018 framework (or term facility) agreement that had previously been signed by the two banks.

DBZ then on-lent the proceeds of the loan to two special purpose vehicles (project companies) called RG Processing Limited Liability Partnership (RG Processing LLP or (РГ ПРОЦЕССИНГ) and RG Gold Limited Liability Partnership (RG Gold LLP).

In December 2021, DBK drew down a first tranche of $56.5 million under the June 4, 2021 loan agreement.

As of December 31, 2021, the aggregate principal amount outstanding under the June 4, 2021 loan agreement was $56.5 million.

The purpose of the project was to construct a carbon-in-pulp (CIP) plant at the Raygorodog gold mine in the Akmola region. The plant was expected to start processing 5 metric tons per annum (Mtpa) of sulfide ore by Q3 2022.

More specifically, the $425 million project involved the construction of an 80 M m3 tailings storage facility, a new rotation camp, water supply facilities, a new high-voltage electricity transmission line, maintenance and repair shops, field mining equipment technical support facilities, warehouses and a petrol station.

A high-voltage power line 220 kV with a length of 70 km was to connect the Makinskaya (Макинская) electric power substation (Bulandynskiy District) with the Raygorodok production area, which was expected to enable to provide the future CIP plant with adequate power supply.

A network of water conduits with a total length of approximately 30 km was expected to supply processed water to the future CIP plant.

Upon completion, the CIP plant was expected to send bullion to the Kazzinc refinery, which operates one of the largest gold-producing operations in Kazakhstan, Altyntau Kokshetau in the Akmola Region. AAEngineering Group is the EPC contractor responsible for project implementation. The CIP plant at the Raygorodog gold mine was put into operation in October 2022.