ICBC Almaty participates in $600 million syndicated loan to refinance ICBC-arranged loan to Samruk-Kazyna for purchase of shares in KMG Kashagan B.V. (Linked to Record ID#70732)

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. The borrowing terms of the loan originally included a 5-year maturity period (as captured in Record ID#70732). On October 16, 2015, Samruk-Kazyna purchased 50% of the shares in KMG Kashagan B.V. from Coöperatieve KazMunaiGaz U.A for $4.7 billion. Then, in June 2018, Samruk-Kazyna and ICBC agreed to extend the 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 ahed of schedule. The remaining $600 million was refinanced by a new syndicated loan, signed on June 28, 2018, coordinated by MUFG Bank, Ltd. 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 new loan is due on October 30, 2022, with a grace period until April 30, 2021, at an annual rate of 3 month LIBOR+1.4%. In October 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.