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Overview

Bank of China contributes $55 million to $311 million syndicated loan for three South African mining companies

Commitments (Constant USD, 2023)$76,302,477
Commitment Year•2009Country of Activity•South AfricaDirect Recipient Country of Incorporation•British Virgin IslandsSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 1, 2009

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • Bank of Montreal Europe plc
  • Barclays Bank PLC
  • Citibank, N.A.
  • Commonwealth Bank of Australia (CBA) (CommBank)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Scotiabank Europe plc
  • Standard Chartered Bank PLC

Receiving agencies

Private Sector

  • GFI Mining South Africa (Proprietary) Limited
  • Gold Fields Operations Limited
  • Gold Fields Orogen Holding (BVI) Limited

Loan description

Bank of China contributes to USD 311 million syndicated loan for Gold Fields Operations Limited, GFI Mining South Africa (Proprietary) Limited, and Gold Fields Orogen Holding (BVI) Limited

Interest rate (t₀)•3.75688%Interest type•Variable Interest RateLoan tenor•3-month rate

Narrative

Full Description

Project narrative

In May 2009, Gold Fields Operations Limited, GFI Mining South Africa (Proprietary) Limited, and Gold Fields Orogen Holding (BVI) Limited signed a $311 million syndicated loan (credit facility) agreement with a group of Chinese and non-Chinese banks. Bank of China contributed $55 million to the loan syndicate. The borrower was expected to use proceeds from the loan for working capital and general corporate purposes. The loan proceeds were also to be used to facilitate the repayment of a $750,000,000 loan that GFI Mining South Africa (Proprietary) Limited, Gold Fields Orogen Holding (BVI) Limited and Western Areas Limited contracted on May 16, 2007 (which was arranged by ABN AMRO Bank N.V. and Barclays Capital with Barclays Bank PLC acting as Agent). The maturity length of the loan is unknown. However, the interest rate is calculated as margin plus LIBOR plus mandatory costs. It is recorded as 0.815% + 2.75% = 3.565% (3M average LIBOR May 2009 + Margin).

Staff comments

1. The syndicated loan agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1172724/000119312509246637/dex424.htm. 2. The mandatory costs vary, and they are unknown, so AidData has not accounted for these costs in the calculation of the interest rate.