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Overview

ICBC Standard Bank provides $106 million USD loan to La Mancha for the acquisition of Canada-based Golden Star Resources in 2018

Commitments (Constant USD, 2023)$106,667,407
Commitment Year•2018Country of Activity•CanadaDirect Recipient Country of Incorporation•LuxembourgOverseas Jurisdiction•United KingdomSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 25, 2018
End (actual)
Oct 2, 2018
Last repayment (originally scheduled)
Jan 11, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • ICBC Standard Bank PLC

Receiving agencies

Private Sector

  • La Mancha Holding S.à r.l.

Loan description

ICBC Standard Bank provides $106 million USD loan to La Mancha for the acquisition of Canada-based Golden Star Resources in 2018

Interest type•Variable Interest RateMaturity•2.3 years

Narrative

Full Description

Project narrative

On September 25, 2018, financial close was reached on a deal in which ICBC Standard Bank entered into a $106 million USD bilateral loan agreement with La Mancha Holding, a private natural resource investment company based in Luxembourg, for the acquisition of Golden Star Resources, a Toronto-headquartered gold mining company with operations in West Africa. The maturity of the loan is 2.3 years and the interest rate was LIBOR plus an applicable margin. The proceeds were used by the borrower to acquire Golden Star Resources, a mid-tier gold producer with operations primarily in Ghana. While ICBC Standard contributed $106 million USD to this loan, no other lenders participated in this transaction. On October 2, 2018, La Mancha announced that it had finalized the acquisition. In total, La Mancha invested approximately $125.7 million USD in cash into Golden Star through a private placement.

Staff comments

1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/903571/000110465918059994/a18-36027_1ex4.htm 2. La Mancha Holding is a Luxembourg-based private natural resource investment firm focused on investments in the gold and precious metals mining sectors, particularly in Africa. It is backed by Egyptian billionaire Naguib Sawiris. 3. Golden Star Resources Ltd. was a Canada-based gold mining and exploration company headquartered in Toronto, Ontario. The company primarily operated in Ghana, West Africa, where it managed the Wassa underground gold mine. Golden Star focused on developing high-grade, low-cost gold assets and had a long-standing presence in Ghana’s mining sector. Golden Star is an established gold mining company with two producing mines on the Ashanti Gold Belt in the country. 4. In September 2019, La Mancha acquired another 5% stakes of the company. 5. In 2022, Golden Star Resources was acquired by Chifeng Jilong Gold Mining Co., Ltd. (赤峰吉隆黄金矿业), a private Chinese gold producer. 6. AidData cannot estimate the interest rate because the applicable spread is reducted in the loan contract.