Bank of China contributes to $380 million tranche of syndicated loan to Ciner Group's We Soda (Linked to Project ID#88608)

On August 1, 2018, We Soda — a wholly owned subsidiary of the Ciner Group — signed a $1,660,000,000 syndicated loan agreement with a group of banks. The proceeds of the loan were to be used by the borrower primarily to refinance existing debts. The loan has two tranches: a $380 million (USD-denominated) tranche (captured by this project) and an EUR 1.1 billion (EUR-denominated tranche that is captured via Project ID#88608). Participants in the lending syndicate included Bank of China, Denizbank, Goldman Sachs, and Türkiye İş Bankas. The interest rate for the USD-denominated tranche was 3-month LIBOR plus a 4.25% margin. The interest rate for the EUR-denominated was the 3-month LIBOR plus a 3.75% margin. The loan has a 7-year maturity (final maturity date: August 1, 2025). Repayments were originally scheduled to commence on December 31, 2018. However, on July 24, 2020, an agreement was signed deferring repayments for the June 30, 2020 to March 31, 2021 period. Kew Soda Ltd, WE Soda Kimya Yatirimlari A.Ş., Ciner Kimya, Ciner Corp, and Ciner Holdings are guarantors for the loan, and the loan is secured by (i.e. collateralized with) share pledges of Ciner Enterprises Inc., Ciner Corp, Ciner Holdings, Ciner Resources LP, Ciner Kimya, WE Soda Kimya Yatirimlari A.Ş. and Eti Soda.

Additional details

1. We Soda is the world’s largest soda ash producer, with operations in Turkey and Wyoming. Soda ash and sodium bicarbonate are used in the production of glass, detergents, food, pharmaceuticals, and chemicals. 2. The all-in interest rate (6.574%) for the USD-denominated tranche was estimated by adding a 4.25% margin to the average 3-month LIBOR rate in August 2018 (2.324%). The all-in interest rate (6.074%) for the EUR-denominated tranche was estimated by adding a 3.75% margin to the average 3-month LIBOR rate in August 2018 (2.324%). 3. Bank of China’s contribution to the $380 million loan tranche is unknown. For the time being, AidData assumes equal contributions ($95 million) across all four members of the lending syndicate. 4. Bank of China’s contribution to the EUR 1.1 billion loan tranche is unknown. For the time being, AidData assumes equal contributions (EUR 275 million) across all four members of the lending syndicate.

Number of official sources

4

Number of total sources

8