Loading grant details…
China Development Bank contributes $790 million — via Tranche C — to $1.59 billion syndicated loan for acquisition of 56% ownership stake in the Tenke Fungurume copper-cobalt mine (Linked to Record ID#91890 and ID#91895)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | CMOC DRC Limited |
| Country | Democratic Republic of the Congo |
| Start Date | Nov 15, 2016 |
| End Date | May 08, 2026 |
| Duration | 3,461 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 91897 |
Grant Description
BOC, China Citic Bank, and CDB contributions to USD 1.59 billion syndicated loan for acquisition of 56% ownership stake in the Tenke Fungurume copper-cobalt mine On November 15, 2016, CMOC DRC Limited — a special purpose vehicle and wholly-owned subsidiary of China Molybdenum Co., Ltd. that is legally incorporated in Hong Kong — signed a $1.59 billion (RMB 11 billion) syndicated loan agreement with Bank of China, China CITIC Bank, China Minsheng Banking Corporation Limited, and China Development Bank to partially finance its $2.65 billion acquisition of a 56% ownership stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of the Congo (DRC).
The loan consisted of three tranches: a $450 million tranche from the Hong Kong Branch and Cayman Islands Branch of Bank of China (known as ‘Tranche A’), a $350 million tranche from the Zhengzhou Branch of China CITIC Bank and the Luoyang Branch of China Minsheng Banking Corporation Limited (known as ‘Tranche B’), and a $790 million tranche from China Development Bank (known as ‘Tranche C’).
The borrower was responsible for repaying the loan between March 15, 2018 and November 15, 2023.
China Molybdenum Co., Ltd. pledged its 100% equity stake in CMOC DRC Limited to the lenders as a source of collateral; it also issued a corporate guarantee in support of the loan.
CMOC DRC Limited’s acquisition of a 56% stake in the Tenke Fungurume copper-cobalt mine from Freeport-McMoRan — by purchasing Freeport-McMoRan’s 70% ownership stake in TF Holdings Limited (TFHL), a Bermuda-based holding company that owns an 80% ownership stake in Tenke Fungurume Mining S.A. (“Tenke”) in the DRC — was successfully completed on November 17, 2016.
Staff Comments
- The Chinese project title is 洛钼集团完成26.5亿美元刚果并购交易 or 洛钼控股26.5亿美元收购刚果铜钴矿公司等筹.
- China Molybdenum Co., Ltd. retained Citigroup Global Markets Inc. as financial advisor, Osler, Hoskin & Harcourt LLP as lead legal advisor, and Herbert Smith Freehills LLP, King & Wood Mallesons LLP and Covington & Burling LLP as legal advisors.
- 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.
- Given that the loan was contracted on November 15, 2016 and the borrower was responsible for repaying the loan between March 15, 2018 and November 15, 2023, the loan’s implied grace period is 1.33-years.
- The monetary value of the contributions made by China CITIC Bank and China Minsheng Banking Corporation Limited to the Tranche B are unknown. For the time being, AidData assumes equal contributions ($175 million) across the 2 participants in Tranche B.
- One source (https://kwm-stage-06.adobecqms.net/content/kwm/us/en/people/david-lam.html and https://www.dropbox.com/s/1c8nv3x1me32cjz/David%20Lam%20-%20KWM.pdf?dl=0) suggests that China Eximbank also supported the transaction. This issue warrants further investigation.
Sources & References
- 2018 Annual Report
- Gold - Geopolitical tensions and inflation remain key drivers
- INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020, 2017 Interim Report, a power struggle over cobalt
- CMOC Announces Acquisition of Freeport-McMoRan’s Indirect 56% Interest in Tenke Fungurume for US$2.65 billion (USD)
- Freeport-McMoRan Announces Agreements To Sell Its Interests In TF Holdings Limited For $2.65 Billion In Cash And Up To $120 Million In Contingent Consideration; And To Enter Exclusive Negotiations For The Sale Of Its Interests In Freeport Cobalt And Kisanfu Exploration Project For $150 Million
- Freeport to sell stake in unit controlling Tenke copper project
- Covington Represents CMOC on $2.65 Billion DRC Congolese Acquisition
- Helped Navigate a Multibillion-Dollar Mining Acquisition in Africa
- US$1.1 billion to acquire 24% stake in Congo (DRC) copper and cobalt business TFM
- China CITIC Bank was awarded 'Best Corporate and Investment Bank' by Asiamoney
- 中信银行获《亚洲货币》“最佳公司和投资银行”奖项
- China’s economy faced tough challenges but still saw strong performance. In 2017
- China Business Law Journal’s editorial team selected outstanding deals and cases supported by remarkable legal efforts
- China CITIC Bank was awarded 'Best Corporate and Investment Bank' by Asiamoney
- China CITIC Bank seizes market opportunities and actively deploys innovative financing products represented by equity financing
- 路透基点：洛阳钼业贷款15.9亿美元，用于收购刚果Tenke矿权益--TRLPC
- CMOC 2017 Semi-annual Report, https://m.sohu.com/?spm=smwp.404.0.0.1659627529832KKL1CJt
- General Patterns for Structural Design of Overseas M&A Transactions[1]
- 洛阳栾川钼业集团股份有限公司 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.
All Grantees
CMOC DRC Limited
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
