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Overview

China Eximbank provides $3 billion loan for acquisition of JSC Mangistaumunaigas

Commitments (Constant USD, 2023)$4,161,953,309
Commitment Year•2009Country of Activity•KazakhstanDirect Recipient Country of Incorporation•NetherlandsSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 15, 2009
Start (actual)
Apr 15, 2009
End (actual)
Nov 25, 2009
Last repayment (originally scheduled)
Oct 12, 2018

Geospatial footprint

Map overview

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The project was to provide a $3 billion loan for acquisition of JSC Mangistaumunaigas. More detailed locational information can be found at: https://www.openstreetmap.org/relation/2512086#map=12/43.6619/51.1905

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Mangistau Investments B.V. (MIBV)

Implementing agencies

State-owned companies

  • China National Petroleum Corporation (CNPC)
  • KazMunayGas (KMG)

Loan desecription

China Eximbank provides $3 billion loan for acquisition of JSC Mangistaumunaigas

Grant element•20.2383%Interest rate (t₀)•3.94813%Interest type•Variable Interest RateLoan tenor•1-month rateMaturity•9.5 years

Collateral

Pledge over the shares of JSC Mangistaumunaigas (MMG) and the shares of Mangistau Investments B.V. (MIBV)

Narrative

Full Description

Project narrative

On April 15, 2009, Mangistau Investments B.V. (MIBV) — a joint venture between Joint Stock Company National Company KazMunayGas (KMG) (50% equity stake) and CNPC Exploration and Development Company Ltd (CNPC E&D) (50% equity stake) — signed a $3.0 billion facility agreement with the Export-Import Bank of China. MIBV used the proceeds of the loan to acquire a 50 percent ownership stake in the exploration assets of MMG, Kazakhstan’s fifth-largest oil producer, at a purchase price of $2.6 billion. This acquisition was completed on November 25, 2009. CNPC E&D, a Chinese government-owned oil and gas producer, acquired the other 50 percent ownership stake. The transaction included the acquisition of oil and gas fields in Kalamkas and Zhetybai, as well as other upstream and exploration assets, including licenses to explore and develop over 15 other oil and gas fields in Kazakhstan and the Caspian region. It was approved by, inter alia, the European Commission and local anti-monopoly authorities. The China Eximbank loan carried interest at a rate of one-month LIBOR (0.461% in April 2009) plus a 3.5 percent margin and it matured on May 31, 2019. However, due to high oil prices, MIBV repaid the China Eximbank loan ahead of schedule in July 2013.

Staff comments

1. Mangistau Investments B.V. (“MIBV”) is a joint venture between Joint Stock Company National Company KazMunayGas (KMG) and CNPC Exploration and Development Company Ltd (“CNPC E&D”), with each partner having a 50 percent ownership stake. 2. JSC Mangistaumunaigas (MMG) is one of the major oil-producing companies in Kazakhstan. The company has 36 oil and gas deposits, 15 of them are under development. The largest deposits in terms of reserves are Kalamkas and Zhetybai. MMG is owned by Mangistau Investments B.V. (“MIBV”), a jointly-controlled entity between KMG and CPNC Exploration and Development Company Ltd (“CNPC E&D”), with each partner having a 50 percent interest. KMG acquired its interest in MMG on November 25, 2009. MMG is one of Kazakhstan’s largest oil producers and operates the Kalamkas Field, one of the largest fields in Kazakhstan, pursuant to a Subsoil Use Agreement that expires in 2027. 3. CNPC E&D is a joint venture equally owned by PetroChina and China National Oil & Gas Exploration and Development Corporation, subsidiaries of CNPC. 4. Multiple sources suggest that CNPC provided a $1.7 billion loan to KazMunaiGas NC JSC in 2009. This issue requires further investigation.