Narrative
Full Description
Project narrative
On February 14, 2013, financial close was reached on a deal in which a syndicate of 46 banks — including Chinese banks Bank of China, Agricultural Bank of China, Bank of Communications, China Construction Bank, and Industrial and Commercial Bank of China (ICBC) — entered into a $4 billion USD syndicated loan agreement with Freeport-McMoRan Copper & Gold Inc., a Phoenix, Arizona-based mining company specializing in copper and gold extraction. The loan's maturity is 5 years (final maturity May 30 2018), with interest pegged to the 6-month average LIBOR rate plus an applicable margin. The proceeds of the loan were used to finance the acquisition of McMoRan Exploration Co. and Plains Exploration & Production Co., refinance their outstanding debts, and cover associated fees and general corporate purposes. While the Bank of China (Record ID#106313), NY Branch, Agricultural Bank of China, NY Branch, (Record ID#106314), Bank of Communications, NY Branch (Record ID#106315), China Construction Bank, NY Branch (Record ID#106316) , and ICBC, NY Branch (Record ID#106317) contributed equally to this loan, the following lenders also participated: JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, HSBC Bank USA, National Association, Mizuho Corporate Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Canadian Imperial Bank of Commerce, U.S. Bank National Association, BNP Paribas, Bank of Montreal, Sovereign Bank, Standard Chartered Bank, DBS Bank Ltd., The Northern Trust Company, State Bank of India, Compass Bank, Royal Bank of Canada, The Toronto-Dominion Bank, Wells Fargo Bank, Natixis, UBS Loan Finance LLC, Bank Hapoalim B.M., Bank of the West, Sabadell United Bank, Bank of Taiwan, National Bank of Kuwait, Taiwan Cooperative Bank, City National Bank, Crédit Industriel et Commercial, E.Sun Commercial Bank, Ltd., Manufacturers Bank, UMB Bank, First Commercial Bank, Mega International Commercial Bank, Mercantil Commerce Bank, P.T. Bank Rakyat Indonesia, The Bank of East Asia, and The Chiba Bank, Ltd. On Feb 23, 2015, the borrower and 27 lenders entered into 1st amendment in which they extended the maturity to February 28, 2020. The lenders also decreased the commitment amount to $3.05 billion USD. While Bank of China, New York Branch contributed $21.79 million USD to this agreement in 2020, the following banks also participated: Bank of America, N.A. ($191.17 million USD); HSBC Bank USA, National Association ($174.29 million USD); Mizuho Bank, Ltd. ($174.29 million USD); The Bank of Nova Scotia ($174.29 million USD); The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($174.29 million USD); Sumitomo Mitsui Banking Corporation ($162.85 million USD); U.S. Bank National Association ($144.88 million USD); Bank of Montreal, Chicago Branch ($108.93 million USD); JPMorgan Chase Bank, N.A. ($91.29 million USD); Santander Bank, N.A. ($79.50 million USD); Compass Bank ($61.00 million USD); Royal Bank of Canada ($61.00 million USD); The Toronto-Dominion Bank, New York Branch ($61.00 million USD); Wells Fargo Bank, National Association ($61.00 million USD); DBS Bank, Ltd. ($55.29 million USD); BNP Paribas ($44.77 million USD); The Northern Trust Company ($32.68 million USD); Capital Bank, N.A. ($22.88 million USD); Capital One, N.A. ($21.79 million USD); Natixis, New York Branch ($21.79 million USD); UBS AG, Stamford Branch ($21.79 million USD); First Niagara Bank, N.A. ($11.44 million USD); Bank of Cascades ($7.63 million USD); Chang Hwa Commercial Bank Ltd., Los Angeles Branch ($7.63 million USD); and United Community Bank. Bank of China’s contribution the debt rescheduling is recorded in Record ID#106318). On April 20, 2018, the borrowers and certain lenders entered into a new term loan agreement, replacing the previous agreement. There is no Chinese bank.
Staff comments
1. Freeport-McMoRan Inc., often called Freeport, is an American mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona. The company is the world's largest producer of molybdenum, a major copper producer and operates the world's largest gold mine, the Grasberg mine in Papua, Indonesia. 2. AidData estimates the interest rate by adding the 6-month term LIBOR for February 2013 and the applicable margins based on the credit ratings (BBB or 1.5%). 3. The individual contribution to the $4 billion USD term loan is unclear. Hence, AidData assumes each lender contributed equally to the loan and calculates each Chinese bank's contribution by dividing $4 billion by the number of lenders (46) equal to $86956521.74USD.