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Overview

Bank of China contributes to USD 45 million term loan facility as part of USD 284 million debt financing for Pertama Ferroalloys Processing Plant Construction Project in 2016

Commitments (Constant USD, 2023)$9,816,494
Commitment Year•2016Country of Activity•MalaysiaDirect Recipient Country of Incorporation•MalaysiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 24, 2016
Start (actual)
Jun 30, 2010
End (actual)
Jun 30, 2017
First repayment (originally scheduled)
Feb 24, 2016
Last repayment (originally scheduled)
Feb 24, 2023

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)

Cofinancing agencies

Private Sector

  • Malayan Banking Berhad (Maybank)

State-owned Banks

  • Export-Import Bank of Malaysia
  • Korea Development Bank (KDB)

State-owned companies

  • Malaysia Building Society Bhd. (MBSB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Pertama Ferroalloys Sdn. Bhd.

Loan description

Bank of China contributions to USD 284 million debt financing facility for Pertama Ferroalloys Processing Plant Project in Malaysia in 2016

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

On February 24, 2016, an agreement for a USD 284 million debt financing facility between Pertama Ferroalloys Sdn. Bhd. and a syndicate of five banks achieved financial close. The debt facility was divided into the following six tranches: an $8.72 million project bond, a $50 million working capital loan, a $45 million term loan, a term loan denominated in Malaysian Ringgit worth USD 53.3 million, a $68 million term loan, and a $50 million term loan. The syndicate was comprised of the Bank of China, Export-Import Bank of Malaysia, Korea Development Bank, Malaysian Building Society, and Maybank. Bank of China contributed an estimated total of $53.3 million divided among every tranche except the working capital loan facility. Estimated contributions to the relevant tranches are as follows: $10 million to the $50 million working capital loan (Record ID #109732), $9 million to the $45 million term loan (captured in this record), an equivalent of $10.7 million to the $53.5 million ringgit-denominated term loan (Record ID #109757), $13.6 million to the $68 million term loan (Record ID #109758), and $10 million to the 50 million term loan (Record ID #109759). Moreover, the $45 million, $53.5 million, and $68 million term loan facilities each have maturities of seven years, whereas the $50 million term loan has a nine-year maturity. The project was also supported by an equity contribution of USD 163 million by Asia Minerals, Nippon Denko, Carbon Capital Corporation, and Shinsho Corporation. The overall financing package was arranged to support the construction of the Pertama Ferroalloys processing plant in Samalaju Industrial Park in Sarawak, Malaysia. When completed, the processing plant’s final products would be manganese alloys, ferrosilicon, and electrolytic manganese metal (EMM). Furthermore, when fully operational, the expected yearly output of the plant would be 220,000 tonnes.

Staff comments

1. Allen & Over acted as legal advisers for the borrower, and Clifford Chance acted as legal advisers to the lenders. 2. According to Pertama Ferroalloys Sdn. Bhd.'s website, construction of the plant commenced in Q2 of 2010. As such, the exact timing of the loan agreement within the construction timeline remains unclear. 3. The plant achieved full commercial operations in Q2 of 2017. For this reason, it is assumed that the plant was completed during this period.