China Eximbank, China Construction Bank, and Agricultural Bank of China provide RMB 2 billion syndicated loan for Malaysia-China Kuantan Industrial Park Integrated Steel Project (Linked to Project ID#62339 and #62336)

In November 2015, China Eximbank, China Construction Bank, and the Agricultural Bank of China signed a $664 million syndicated loan agreement with Alliance Steel (M) SDN BHD [also known as Alliance Steel or 联合钢铁（大马）集团公司] — a special purpose vehicle and joint venture of Guangxi Beibu Gulf International Port Group Co., Ltd. and Guangxi Shenglong Metallurgical Co., Ltd — for the Malaysia-China Kuantan Industrial Park Integrated Steel Project. The borrowing terms of this loan are unknown. In November 2015, China Eximbank, China Construction Bank, and the Agricultural Bank of China also signed an RMB 2 billion syndicated loan agreement with Alliance Steel (M) SDN BHD for the Malaysia-China Kuantan Industrial Park Integrated Steel Project. The borrowing terms of this loan are also unknown. The $664 million loan is captured via Project ID#62336 and the RMB 2 billion loan is captured via Project ID#62338. The borrower purchased credit insurance from Sinosure for these two loans. The total cost of the project was $1.4 billion and it was financed with a mix of debt and equity. The equity portion was provided through a $423 million direct investment by Guangxi Beibu Gulf International Port Group Co., Ltd. (captured via Project ID#62339). The purpose of the project was to construct a steel production plant — with the capacity to produce 3.5 million tons of steel per year — in the Malaysia-China Kuantan Industrial Park, which is located in in Pahang state on Malaysia's east coast. The plant covers an area of approximately 4,200 acres and it is designed to produce steel bars and wire rods for the ASEAN region. Upon the completion of the project, the plant was expected to generate 400 local jobs. MCC22 Group Corporation Ltd. (MCC20), a subsidiary of China Metallurgical Group Corporation (MCC), was the contractor responsible for project implementation. The project officially commenced on December 23, 2014. However, the first syndicated loan disbursement did not take place until October 25, 2016. The steel plant was put into operation on May 8, 2018. An official project completion and commissioning ceremony was held on June 15, 2019. The originally anticipated project commencement and completion dates were June 2, 2016 and December 31, 2017, respectively. Upon completion of the project, the steel plant had created 2,700 local jobs

Additional details

1. This project is also known as the 3.5 Million Tons of Integrated Steel Project in Malaysia-China Kuantan Industrial Park (MCKIP), the 3.5 million tons of steel project in Malaysia-China Kuantan Industrial Park, and the Kuantan Steel Project. The Chinese project title is 马中关丹产业园350万吨钢铁项目 or 马来西亚关丹产业园钢铁厂项目 or 联合钢铁项目. 2. Guangxi Beibu Gulf International Port Group is a wholly state-owned company under the People's Government of Guangxi. Guangxi Shenglong Metallurgical Co., Ltd is a joint-stock private enterprise owned by Fujian Wugang Group and private entrepreneurs from Fujian Province. Guangxi Beibu Gulf International Port Group Co., Ltd. and Guangxi Shenglong Metallurgical Co., Ltd established Alliance Steel (M) SDN BHD as a joint venture in April 2014.

Number of official sources

16

Number of total sources

24