Bank of China contributes $64.5 million to $129 million syndicated loan for Shieli Cement Production Plant Construction Project (Linked to Record ID#70845)

Project narrative

In 2017, Bank of China (BOC) and the Export-Import Bank of China signed a $129 million syndicated loan agreement with Gezhouba Shieli Cement Company LLC -- a special purpose vehicle and joint venture -- for the Shieli Cement Production Plant Construction. The loan carried a maturity period of nine years. Its interest rate and grace period are unknown. China Gezhouba Group Cement Co., Ltd. issued a guarantee for the loan, while China Export & Credit Insurance (Sinosure) provided overseas investment insurance that covered political risk up to 95%. The project had a total cost of $178.03 million. BOC provided 50% of the face value loan ($64.5 million), as captured via Record ID#53795. China Eximbank's contribution ($64.5 million) is captured via Record ID#70845. The purpose of the project was to construct a cement production plant that is located in Shieli within the Shieli District and the Kyzylorda Region. The plant was designed to have daily production of 2,500 tons of clinker cement and an annual production of 1 million tons of cement. It was also designed to produce nine different nine types of cement. Its major product was oil well cement, which was expected to help reduced Kazakhstan's reliance on imports. The plant was originally expected to reach completion before the end of 2018. China Triumph International Engineering Co., Ltd. (CTIEC) won the engineering, procurement and construction (EPC) contract in April 2017. Its subsidiary Beijing Triumph International Engineering Co., Ltd. assumed responsibility for design work. Construction began on April 7, 2017. The official opening ceremony of the plant was on December 11, 2018. The plant was officially put into operation on October 18, 2019.