Skip to content
AidData logo

Overview

Bank of China provides RMB 185 million loan for KTZE-Khorgos Gateway Dry Port Acquisition Project

Commitments (Constant USD, 2023)$28,147,710
Commitment Year•2018Country of Activity•KazakhstanDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 27, 2018
Start (actual)
Jul 21, 2017
End (actual)
Jul 21, 2017

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The project involved the KTZE-Khorgos Gateway Dry Port, which is located in Kazkahstan, about 15 km from the border with China, in the Khorgos-Eastern Gates Special Economic Zone. More detailed locational information can be found at https://www.openstreetmap.org/way/558486105.

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

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • COSCO Shipping Holdings Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

Bank of China provides RMB 185 million loan for KTZE-Khorgos Gateway Dry Port Acquisition Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 27, 2018, Bank of China issued an RMB 185 million M&A loan to COSCO Shipping Holdings Co., Ltd to support the KTZE-Khorgos Gateway Dry Port Acquisition Project. The borrowing terms of the Sinosured-backed loan are unknown. However, it is known that the borrower was expected to use the proceeds of the loan to facilitate the acquisition of an equity stake in KTZE-Khorgos Gateway (a wholly-owned subsidiary of Kazakhstan Temir Zholy, also known as KTZ). On May 15, 2017, COSCO Shipping Holdings Co., Ltd., Jiangsu Lianyungang Port Co., Ltd., and KTZ — signed a share transfer agreement to acquire a 49% equity stake in KTZE-Khorgos Gateway. Under the terms of the share transfer agreement, COSCO Shipping Holdings Co., Ltd. and Jiangsu Lianyungang Port Co., Ltd. each agreed to acquire a 24.5% equity take in KTZE-Khorgos Gateway. COSCO SHIPPING Holdings Co., Ltd. agreed to pay approximately RMB 260 million for its part of the acquisition. COSCO Shipping Holdings Co., Ltd. and Jiangsu Lianyungang Port Co., Ltd. completed the acquisition of a 49% stake in KTZE-Khorgos Gateway from KTZ Express on July 21, 2017. The KTZE-Khorgos Gateway Dry Port is located in Kazkahstan, about 15 km from the border with China, in Khorgos-Eastern Gates Special Economic Zone. It has become an important transportation hub connecting China to Europe by rail with average transit time of 14-15 days.

Staff comments

1. The Chinese project title is 哈萨克斯坦“霍尔果斯-东门”经济特区无水港项目. The Kazakh project title is Қорғас құрғақ порт шлюзі. 2. Jiangsu Lianyungang Port Co., Ltd. is also known as Lianyungang Port Holdings Group Co., Ltd. (LPH). 3. KTZ is the national, state-owned railway company of Kazakhstan. 4. EY acted as accountant to Kazakhstan Temir Zholy NC.