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Overview

CDB provides $121.5 million loan for Lao Kaiyuan Potash Mine Project (Linked to Record ID#64269, #64227)

Commitments (Constant USD, 2023)$138,084,403
Commitment Year•2011Country of Activity•Lao People's Democratic RepublicDirect Recipient Country of Incorporation•Lao People's Democratic RepublicSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 29, 2011
Start (actual)
Jan 1, 2011
End (actual)
Jan 1, 2013
Last repayment (originally scheduled)
Dec 29, 2022

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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The purpose of the project was to build a mine in Thakhek district and Khammouane Province with the capacity to produce 500,000 tons of potassium chloride each year. More detailed locational information can be found at https://www.openstreetmap.org/way/392487813

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Lao Kaiyuan Mining Co., Ltd

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Lao Kaiyuan Mining Co., Ltd

Guarantors

Private Sector

  • Qingdao East Steel Tower Stock Co., Ltd.

Loan desecription

CDB provides $121.5 million loan for Lao Kaiyuan Potash Mine Project

Grant element•19.5551%Interest rate (t₀)•5.0085%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•12 years

Narrative

Full Description

Project narrative

On December 29, 2011, China Development Bank and Lao Kaiyuan Mining Co., Ltd. (老挝开元矿业有限公司) signed a $121.5 loan agreement (ID#5110201101100000033) for the Lao Kaiyuan Potash Mine Project (as captured via Record ID#64228). The term of this USD-denominated loan is from December 29, 2011 to December 30, 2023. The loan carries an interest rate of 6-month LIBOR plus a 4.2% margin. Then, on August 2, 2012, China Development Bank and Lao Kaiyuan Mining Co., Ltd. signed a supplementary loan agreement (ID#5110201201100000203) worth RMB 50 million for the Lao Kaiyuan Potash Mine Project (as captured via Record ID#64269). This RMB-denominated loan carries an interest rate equivalent to the benchmark RMB interest rate. Qingdao East Steel Tower (东方铁塔) issued guarantees for both loans. The purpose of the project was to build a mine in Thakhek district and Khammouane Province with the capacity to produce 500,000 tons of potassium chloride each year. The project commenced in January 2011 and was completed in 2013.

Staff comments

1. This project is linked to a $20 million loan pledge from China Eximbank (captured in Record ID#64227) for the Lao Kaiyuan Potash Mine Project. 2. Lao Kaiyuan Mining Co., Ltd. is a 100% Chinese owned enterprise with mining operations located in Khammouane Province, Lao PDR. The company is currently developing Asia’s largest potash mine in terms of proved and probable potash reserves. The company is a subsidiary of Kaiyuan Potash Group Limited, a Hong Kong registered entity. 3. AidData has estimated the all-in interest rate (4.98%) that applied to the USD-denominated loan by adding 4.2% to average 6-month LIBOR (0.78%) December 2011). AidData has estimated the interest rate (6.56%) that applied to the RMB-denominated loan by identifying the benchmark RMB interest rate in the loan commitment year (2011).