Narrative
Full Description
Project narrative
In August 2015, a syndicate of 12 banks — including Bank of China (Hungary) Close Ltd. — signed a $750 million USD syndicated pre-export finance (PXF) facility agreement with EuroChem Group AG — a Zug, Switzerland-headquartered agrochemical-fertilizer company effectively entirely beneficially owned by Russian billionaire entrepreneur and EuroChem Group and coal producer SUEK JSC founder Andrey Melnichenko and with the majority of its production assets in Russia, but other assets in Belgium, Lithuania, China, and Kazakhstan — for refinancing, capital expenditure, and other general corporate purposes. This loan carried a maturity period of four years and a grace period of two years. This loan was secured. The proceeds were to be used by the borrower to refinance part of its debt as well as for capital expenditure and other general corporate purposes. Record ID#100615 captures Bank of China (Hungary)'s contribution. Then, on September 13, 2016, a syndicate of 12 banks — including the Bank of China (BOC) and the Luxembourg Branch of the Industrial and Commercial Bank of China (ICBC) — signed a $800 million USD syndicated PXF facility agreement with EuroChem Group for refinancing purposes. This secured PXF carried a maturity period of five years with a grace period of two years. The proceeds were to be used to refinance part of its debt, namely full repayment of the entire 2015 $750 million PXF facility. Eurochem Trading USA Corp, a Florida-based trading entity of EuroChem Group, issued a guarantee for this PXF. Record ID#100620 captures BOC's contribution. Record ID#100621 captures ICBC's contribution. In addition to BOC and ICBC, the following lenders contributed to the loan syndicate: AO Citibank, Commerzbank AG, Crédit Agricole Corporate and Investment Bank (CACIB), ING Bank N.V., Mizuho Bank, Ltd., Natixis, Nordea Bank AB (publ), AO Raiffeisenbank, Société Générale Corporate & Investment Bank (SGCIB), Rosbank, and UniCredit Bank Austria AG. All those lenders served as mandated lead arrangers. The UK Branch of Citibank Europe PLC served as facility agent and the London Branch of Citibank N.A. served as Security Agent. ING Bank served as sole Coordinator and Documentation Agent. This facility was oversubscribed in syndication.
Staff comments
1. The individual contribution of the 12 lenders to this $800 million USD syndicated pre-export finance facility is unknown. For the time being, AidData has estimated the contribution of BOC and ICBC by assuming that each lender contributed an equal amount ($66,666,666.6667 USD) to the syndicated loan. 2. AidData has coded this transaction as a collateralized loan because Citibank N.A. was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower's default under the loan.