China Eximbank contributes $64.5 million to $129 million syndicated loan for Shieli Cement Production Plant Construction Project (Linked to Project ID#53795)
Commitment amount
$ 74325811.12785281
Adjusted commitment amount
$ 74325811.13
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Kazakhstan
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Description
In 2017, Bank of China (BOC) and the Export-Import Bank of China provided a $129 million syndicated loan to Gezhouba Shieli Cement Company LLC to finance the construction of the cement production plant in Kazakhstan. The loan carried a maturity period of nine years. China Gezhouba Group Cement Co., Ltd. proved a guarantee for the loan, while China Export & Credit Insurance (Sinosure) provided overseas investment insurance that covered political risk up to 95%. The project had a total cost of $178.03 million. China Eximbank provided 50% of the loan, or $64.5 million. The BOC contribution is captured via Project ID#53795. This cement plant was located in Shieli of the Shieli District within the Kyzylorda Region. The plant was designed to have daily production of 2,500 tons of clinker cement and an annual production of 1 million tons of cement. It was also designed to produce nine different nine types of cement. Its major product was oil well cement, which was expected to help reduced Kazakhstan's reliance on imports. The plant was expected to be completed before the end of 2018. China Triumph International Engineering Co., Ltd. (CTIEC) won the engineering, procurement and construction (EPC) contract in April 2017. Its subsidiary Beijing Triumph International Engineering Co., Ltd. assumed responsibility for design work. Construction began on April 7, 2017. The official opening ceremony of the plant was on December 11, 2018. The plant was officially put into operation on October 18, 2019.
Additional details
1. Gezhouba Shieli Cement Company LLC (葛洲壩西里水泥有限公司) is a joint venture between China Gezhouba Group Corporation Limited (CGGC) (50%), China Gezhouba Group Overseas Investment Co., Ltd (20%), a subsidiary of CGGC, and a local cement company called DANAKE Corporation (sometimes called Kazakhstan Darnak Co., Ltd.) (30%).
Number of official sources
6
Number of total sources
13
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Direct receiving agencies [Type]
Gezhouba Shieli Cement Company LLC (葛洲壩西里水泥有限公司) [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
China Triumph International Engineering Co., Ltd. (CTIEC) [State-owned Company]
Beijing Triumph International Engineering Co., Ltd [Private Sector]
Gezhouba Shieli Cement Company LLC (葛洲壩西里水泥有限公司) [Joint Venture/Special Purpose Vehicle]
Guarantee provider [Type]
China Gezhouba Group Cement Co., Ltd. [State-owned Company]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
9 years