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Overview

ICBC contributes $8.33 million USD to a $50 million USD syndicated loan to Sun Metals Corporation for refinancing purposes

Commitments (Constant USD, 2023)$11,732,356
Commitment Year•2008Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 28, 2008
Last repayment (originally scheduled)
Nov 26, 2012

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Bank of Scotland
  • Korea Exchange Bank (KEB)
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Royal Bank of Scotland (RBS)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Sun Metals Corporation Pty Ltd

Loan description

ICBC contributions to a $50 million USD syndicated loan to Sun Metals Corporation for refinancing purposes

Interest type•UnknownMaturity•4.25 years

Narrative

Full Description

Project narrative

On August 28, 2008, financial close was reached on a deal in which a syndicate of six banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $50.00 million USD ($57.92 million AUD) syndicated loan agreement with Sun Metals Corporation Pty Ltd — an Australia-incorporated special purpose vehicle (SPV) and wholly owned subsidiary of Korea Zinc Company Limited that operates Sun Metals Zinc Refinery, Queensland's biggest zinc refinery — for refinancing purposes. This loan carried a maturity period of 4.25 years and a bullet repayment profile. The proceeds were to be used by the borrower to refinance its subordinated debt, namely an existing bond issue. Each lender, including ICBC, contributed $8.33 million USD ($9.65 million AUD) to the loan syndicate. In addition to ICBC, the following lenders contributed to the loan syndicate: Royal Bank of Scotland (RBS), Australia and New Zealand Banking Group (ANZ), Bank of Scotland, Sumitomo Mitsui Banking Corporation (SMBC), and Korea Exchange Bank (KEB). RBS served as sole mandated lead arranger and bookrunner, while the other banks joined in syndication as participants.

Staff comments

1. Sun Metals Corporation operates the Sun Metals Zinc Refinery, which is located 15 kilometers south of the city of Townsville in North Queensland. 2. There is discrepancies in the identities of the lenders of this loan. "Loan week, September 5-11", a contemporary news article, lists Korea Exchange Bank as a lender. "Sun Metals Subordinated Debt Refinancing" instead claims WestLB was a lender. As the existence of another lender would call into question the contributions of each bank, AidData has elected to treat WestLB as having not contributed to this loan; it may have joined in later syndication, replacing Korea Exchange Bank or simply a source error. However, AidData is confident Korea Exchange Bank participated as the borrower's owner is Korea Zinc; Korea Exchange Bank would be naturally inclined to lend towards other South Korean companies and their assets. This issue merits further investigation.