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Overview

Industrial Bank Co Ltd. contributes to $160 million syndicated loan for Matte Nickel Production Facility Project

Commitments (Constant USD, 2023)$26,666,666
Commitment Year•2023Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2023
Start (actual)
Sep 1, 2022
End (actual)
Jun 1, 2023

Geospatial footprint

Map overview

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The purpose of the $330 million (Phase 2) project was to increase the the nickel matte production capacity of an existing facility — from 30,000 tons per year to 60,000 tons per year — in Morowali Industrial Park within Central Sulawesi Province. More detailed locational information can be found at https://www.openstreetmap.org/way/299975400

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

  • Industrial Bank Co., Ltd.

Cofinancing agencies

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)
  • China CITIC Bank Corporation Limited
  • China Everbright Bank
  • Industrial and Commercial Bank of China (ICBC)
  • Shanghai Pudong Development Bank Co., Ltd. (SPDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • PT Zhongtsing New Energy

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

Six state-owned Chinese banks contribute to $160 million syndicated loan for Matte Nickel Production Facility Project in Indonesia 2023

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2023, PT Zhongtsing New Energy — a special purpose vehicle (limited liability company) and joint venture of CNGR Advanced Material Co., Ltd. (中偉新材料股份有限公司) [70% equity stake] and Rigqueza International Pte. Ltd. [30% equity stake] that was legally incorporated in Indonesia on May 4, 2021 — signed an RMB 1.12 billion loan agreement and a $160 million syndicated loan agreement with China CITIC Bank Corporation, Industrial Bank, ICBC, China Everbright Bank, Shanghai Pudong Development Bank, and Agricultural Bank of China for the Matte Nickel Production Facility Project. The borrowing terms of the loan are unknown. However, it is known that the loan was backed by a Sinosure credit insurance policy. The purpose of the $330 million (Phase 2) project was to increase the the nickel matte production capacity of an existing facility — from 30,000 tons per year to 60,000 tons per year — in n Morowali Industrial Park within Central Sulawesi Province. Nickel matte is an intermediate product for battery-grade nickel sulphate and is an important feedstock for CNGR Advanced Material Co., Ltd. Construction commenced in September 2022. Then, on October 25, 2022, smelters with OESBF technology at the production facility successfully converted laterite ore into matte nickel. The facility entered full production in June 2023.

Staff comments

1. The precise value of Industrial Bank Co Ltd's contribution to the $160 million syndicated loan is unknown. For the time being, AidData assumes equal contributions ($26,666,666) across the six known members of the syndicate. This issue warrants further investigation. 2. The Chinese project title is 中伟新材料股份有限公司投资印度尼西亚年产6万金吨高冰镍冶炼项目. 3. CNGR Advanced Material is a Chinese battery material producer. It is one of the world's largest lithium-ion battery cathode precursor manufacturers.