Narrative
Full Description
Project narrative
On February 29, 2008, Kazakhmys Finance PLC -- a wholly owned subsidiary of Kazakhmys PLC -- and a syndicate of banks signed a $2.1 billion pre-export finance (PxF) facility agreement. The borrower was expected to use the proceeds of the loan for general corporate purposes, including the acquisition of Ekibastuz 2, a 250MW coal-fired power plant and Maikuben West coal mine. The borrowing terms of the loan included a five-year maturity and an interest rate of LIBOR plus a 1.25% margin. The loan's availability period was one year. $44 million principal payments were to be made per month between March 2009 and February 2013. In 2009, the interest rate was temporarily set at a fixed rate of 2.3%. Kazakhmys PLC, Kazakhmys LLC and Kazakhmys Sales Limited acted as guarantors of the loan. The loan was collateralized against the value of copper sales contracts with certain designated customers. Participants in the syndicate included Bank of China, Bank of America, Barclays, BNP Paribas, BNP Paribas Fortis, Commerzbank, Credit Agricole Group, Deutsche Bank, Dresdner Kleinwort, ING Group, JP Morgan, MUFG Bank, Natixis, Rabobank, Royal Bank of Scotland, Societe Generale, Sumitomo Mitsui Banking Corporation, and WestLB. As at December 31, 2010, the facility was fully drawn. The loan was fully repaid by December 31, 2012.
Staff comments
1. Given that the loan was acquired in February 2008 and began repayment in March 2009, AidData has inferred a grace period of one year. 2. The loan was replaced by a $1 billion PXF loan in 2012 that was subsequently revised down to $349 million- see record ID #96385. 3. Some of the funds were used to purchase Ekibastuz power plant from American company AES. Ekibastuz power plant is located in Kazakhstan’s Pavlodar Oblast, with a nameplate capacity of 4,000 MW. Maikuben West Coal mine is an open cast mine located 65 kilometres from the Ekibastuz power plant.