Bank of China contributes to $700 million syndicated pre-export finance facility with Kaz Minerals for general corporate and trade financing purposes (Linked to Record ID#92605)

📋 Staff Comments

1. The bank syndicate increased from 12 to 19 lenders. The Mandated Lead Arrangers are Deutsche Bank AG, ING Bank NV, Société Générale, ABN AMRO Bank NV, Bank of China Limited, Crédit Agricole Corporate and Investment Bank, Credit Suisse AG, ICBC London, Natixis and PJSC «SOVCOMBANK». Other lenders in the facility are Bank of Montreal, DZ Bank AG, Intesa SanPaolo S.P.A., Mizuho Bank, Sumitomo Mitsui Banking Corporation, HSBC Bank PLC, KFW Ipex-Bank GMBH, Raiffeisen Bank International AG and Citibank N.A. Deutsche Bank AG continues as the facility agent and ING Bank is the security trustee.
2. The legal support under the transaction was provided by the international legal companies Hogan Lovells and Linklaters.
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. 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.
5. The size of Bank of China’s contribution to the lending syndicate is unknown. For the time being, AidData assumes equal contributions across all 19 members of the syndicate ($36,842,105).
6. It appears that the PXF facility was first signed in 2010. However, this issue requires further investigation.

📚 Sources & References

• Deutsche
• ING
• Others Lead $1B Facility for KAZ Minerals
• REFINANCING OF PRE-EXPORT FINANCE DEBT FACILITY AND INCREASE TO $1.0 BILLION
• REFINANCING OF PRE-EXPORT FINANCE DEBT FACILITY AND INCREASE TO $1.0 BILLION
• Kaz Minerals upsizes and extends pre-export finance facility
• KAZ Minerals plc (via Public) - HALF-YEARLY REPORT FOR THE PERIOD ENDED 06/30/2020, 2016 Full Year Results - KAZ Minerals
• Annual Report and Accounts 2015, 2019 Annual Report and Accounts 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.