Bank of China contributes $15 million to $574 million syndicated loan for Phase 3 of Sulawesi Mining Power Station Project in Morowali Industrial Park (Linked to Project ID#66216, ID#61986, ID#66200, ID#66207, #85817)

In 2015, PT. Indonesia Tsingshan Stainless Steel (ITSS) — a subsidiary of Tsingshan Holding Group (青山控股集团有限公司) — signed a $574 million syndicated loan agreement with China Development Bank and Bank of China Limited Jakarta Branch for Phase 3 of Sulawesi Mining Power Station Project in Morowali Industrial Park. CDB acted as the arranger, original lender, and offshore security agent, contributing $559 million (captured in Project ID#66216), while Bank of China Limited Jakarta Branch acted as Facility Agent and Onshore Security Agent, contributing $15 million (captured in Project ID#69488). The loan carried a 10-year maturity, but its interest rate is unknown. As sources of collateral, the borrower pledged a mortgage of project assets, real estate, and shares of affiliated companies. A corporate guarantee was also issued in support of the loan. The purpose of the project was to construct a stainless steel and nickel pig iron (NPI) smelter and a 700MW (2x350MW) coal-fired power plant to support the smelter. The project site is located in Indonesia Morowali Industrial Park (IMIP) within Sulawesi Province (referred to as 中国印尼综合产业园区青山园区 or 印尼经贸合作区青山园区 in Chinese). Its precise locational coordinates are -2.8295432, 122.1551372. Upon completion, the plant was expected to have a production capacity of 1 million tons of stainless steel per year. Construction began on July 28, 2015 and the project was completed and put into operation in September 2017. In 2018, the smelter produced 581,000 tons of NPI and 882,900 tons of stainless steel slab, and it achieved annual sales of $1.83 billion (with profit before tax amounting to $209 million). CDB also financed Phase 1 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured in Project ID#66200). China Eximbank, ICBC, and Bank of China financed Phase 2 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured in Project ID#66207). China Eximbank financed Phase 4 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured in #85817).

Additional details

1. This project is also known as the Stainless Steel Continuous Casting Billet Project with an Annual Production Capacity of 1 Million Tons and the Auxiliary 2×350 MW Thermal Power Plant. The project is referred to as 印尼青山不锈钢有限公司（ITSS）年产100万吨不锈钢连铸坯及其配套电厂项目 in Chinese. 2. The exact date of the loan commitment is unknown. This issue warrant further investigation.

Number of official sources

7

Number of total sources

13