ICBC contributes to $1.5 billion syndicated loan to Samruk-Kazyna for the acquisition of a 50% stake in KMG Kashagan B.V. (Linked to Record ID#73437)

Project narrative

On October 30, 2015, National Welfare Fund Samruk-Kazyna JSC signed a $1.5 billion syndicated term loan facility agreement to partially finance the purchase of 50% of the shares of KMG Kashagan B.V. The members of the lending syndicate reportedly included the Industrial and Commercial Bank of China (ICBC), Bank of Tokyo Mitsubishi UFJ, JP Morgan Chase Bank, N.A., Mizuho Bank, Ltd, Sumitomo Mitsui Banking Corporation, Credit Suisse AG, and Deutsche Bank AG. Bank of Tokyo Mitsubishi UFJ Ltd., a member of the MUFG Group, was mandated as the sole coordinator, bookrunner and mandated lead arranger. ICBC’s estimated contribution to the the loan syndicate equal to USD 250 million is captured via Record ID#70732. The loan’s borrowing terms originally included a 5-year maturity period, 3.5 years of grace period with an interest rate of 1.8% + 6 month LIBOR. In June 2018, Samruk-Kazyna and ICBC agreed to extend the loan term to 2022, thereby increasing the maturity period to seven years, and to reduce the interest rate to an unknown amount. In July 2018, Samruk-Kazyna repaid $900 million of the $1.5 billion syndicated loan ahead of schedule. The remaining $600 million was refinanced by a new syndicated loan coordinated by Japanese bank MUFG Bank, Limited. The Industrial and Commercial Bank of China (Almaty) JSC (ICBC Almaty) participated in this syndicated loan alongside Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, JSC “Halyk Savings Bank of Kazakhstan”, and Citibank Kazakhstan (as captured via Record ID#73437). The maturity date of this loan was also extended until the end of 2022 (for a maturity period of seven years) because of the postponement of the option agreement for the repurchase of shares of KMG Kashagan B.V. by KazMunayGas. On October 16, 2015, Coöperatieve KazMunaiGaz U.A. sold 50% of its shares in KMG Kashagan B.V. to Samruk-Kazyna for an amount of $4.7 billion, with a call option to buy back all or part of the shares at any time between 1 January 2018 and 31 December 2020. In January 2018, the exercise period for the call option was extended to between 1 January 2020 and 31 December 2022. Samruk-Kazyna’s interest in KMG Kashagan B.V. is held in trust management by Coöperatieve KazMunaiGaz U.A., a subsidiary of the Company.