China Eximbank participates in $595 million syndicated loan for Phase 2 of Well Harvest Winning Alumina Refinery Project (Linked to Project ID#38633, #62275, #70235)

On November 25, 2019, China Hongqiao Group Ltd. secured a syndicated working capital facility of $595 million for up to 10 years to finance the second phase of an alumina refinery expansion project, which was developed by PT Well Harvest Winning Alumina Refinery (PT WHW), a joint venture between China Hongqiao Group and Harita group. Participants in the syndicated loan include China Eximbank, the Jakarta Branch of Bank of China, PT Bank DBS Indonesia (as facility agent), DBS Bank Ltd., Oversea-Chinese Banking Corp. Ltd., Lembaga Pembiayaan Ekspor Indonesia, BNP Paribas, and PT Bank OCBC NISP Tbk. On November 28, 2019, the syndicated loan signing ceremony took place in Jakarta. The loan has a repayment period of 10 years starting on November 25, 2019 (which implies that the loan has no grace period). It is partially covered by an overseas investment insurance policy from China Export & Credit Insurance Corporation (Sinosure). China Eximbank’s estimated contribution is captured via Project ID#67852 and Bank of China’s estimated contribution is captured via Project ID#70235. The Phase 2 expansion involves increasing the refinery's capacity to 2 million tons annually, expansion of the existing thermal power plant, construction of a port, onshore loading facilities, and associated infrastructure. Phase 2 is scheduled to be completed before the end of 2020. The third production line was completed and put into production in December 2021. A March 2022 report indicated that this project will be completed in the year of 2022.

Additional details

1. The Chinese project title is 印尼宏发韦立氧化铝二期项目. 2. This project is linked to #38633, the joint venture of WHW between China Hongqiao Group and Harita group; #62275, the $330M loan for the first phase of the project. 3. The exact size of China Eximbank’s contribution is unknown. For the time being, AidData assumes that all 8 members of the lending syndicate contributed equally ($74,375,000) to the $595 million loan. 4. PT Well Harvest Winning Alumina Refinery (PT WHW) is a special purpose vehicle and joint venture of Harita Group (30%), China Hongqiao Group (56%), Winning Investment Co. (9%), Shandong Weiqiao Aluminum and Electricity Co. Ltd. (5%).

Number of official sources

5

Number of total sources

12