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Overview

Bank of China contributes to USD 450 million senior loan to Minera Los Pelambres for refinancing purposes

Commitments (Constant USD, 2023)$82,992,747
Commitment Year•2021Country of Activity•ChileDirect Recipient Country of Incorporation•ChileSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 8, 2021
Last repayment (originally scheduled)
Nov 6, 2028

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% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank of Nova Scotia (Scotiabank)
  • Credit Agricole S.A. (Crédit Agricole Group)
  • Natixis

State-owned companies

  • Export Development Canada (EDC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Minera Los Pelambres

Loan description

Bank of China contribution to USD 450 million senior loan to Chilean company Minera Los Pelambres for refinancing purposes in 2021

Interest rate (t₀)•1.319%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•7 years

Narrative

Full Description

Project narrative

On November 8, 2021, Bank of China contributed to a USD 450 million senior loan to Minera Los Pelambres—a special purpose vehicle jointly owned by Antofagasta PLC (60% ownership stake), JX Nippon Mining & Metals (15.79% ownership stake), Marubeni Corporation (9.21% ownership stake), Mitsubishi Materials Corporation (10% ownership stake), and Mitsubishi Corporation (5% ownership stake)—for refinancing purposes. The loan has a 7 year maturity and interest rate of 6-month LIBOR plus 1.10%. The other borrowing terms are unknown. Minera Los Pelambres produces copper concentrates containing gold and silver and a separate molybdenum concentrate.

Staff comments

1. The precise contribution of Bank of China to the lending syndicate are unknown. For the time being, AidData assumes equal contributions ($90 million) across the 5 lenders that contributed to the $450 million loan tranche. 2. Based on Antofagasta PLC financial statements, it appears that the $450 million loan was added to the $1.3 billion syndicated loan signed in April 2019 (see Record ID#91968 and 109973 for Bank of China contributions to tranche B of the original syndicate). This issue warrants further investigation.