Overview

China Merchants Bank provides USD 66 million loan to Sinomine (Hong Kong) Rare Metals Resource Co., Ltd. to help finance the company's USD 135 million acquisition of Cabot Corporation's specialty fluids business

Commitments (Constant USD, 2023)$66,415,555

Commitment Year•2018Country of Activity•CanadaDirect Recipient Country of Incorporation•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2018

Geospatial footprint

Map overview

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The purpose of this project was for the China Merchants Bank to provide USD 66 million loan to Sinomine (Hong Kong) Rare Metals Resource Co., Ltd. to help finance the company's USD 135 million acquisition of Cabot Corporation's specialty fluids business. More detailed locational information can be found at: https://www.openstreetmap.org/relation/12378588, https://www.openstreetmap.org/way/29624123

Stakeholders

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

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

China Merchants Bank Co., Ltd.

Receiving agencies

State-owned companies

Sinomine (Hong Kong) Rare Metals Resources Co., Ltd.

Loan desecription

China Merchants Bank provides USD 66 million loan to Sinomine (Hong Kong) Rare Metals Resource Co., Ltd. to help finance the company's USD 135 million acquisition of Cabot Corporation's specialty fluids business

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2018, China Merchants Bank signed an agreement to provide a USD 66 million loan to Sinomine Resource Group Co., Ltd. through its subsidiary, Sinomine (Hong Kong) Rare Metals Resource Co, Ltd. to help finance the company's USD 135 million acquisition of Cabot Corporation's specialty fluids business. The agreement, reached on January 30, 2019, calls for Sinomine's acquisition of 100% of shares in Tantalum Mining Corporation of Canada, Ltd., Cabot Specialty Fluids, Inc., and Cabot Specialty Fluids, Ltd. The agreement included USD 130 million in cash payable at closing, with additional cash royalties of up to USD 5 million for lithium products payable over a ten-year period. The acquisition was expected to be complete in the second quarter of 2019. Lending details of the China Merchants Bank loan are unknown.

Staff comments

1. As Cabot's filing with the Securities and Exchange Commission does not indicate another currency, AidData has assumed that the transaction was completed in USD.