China Eximbank provides RMB 1.5 billion loan for Cement Plant Construction Project (Linked to Record ID#49812, ID#49813, ID#85371)

Project narrative

On September 20, 2011, PT Conch Cement Indonesia (or Indonesia Conch or 印尼海螺水泥有限公司) — a joint venture between Anhui Conch Cement Company Limited (75%) and Prosperity International Holdings (H.K.) Limited (25%) — held its first board of directors in Jakarta and decided to invest in a Cement Plant Construction Project. On May 28, 2013, Anhui Conch Cement Company Limited signed a guarantee contract in which it agreed to issue a full guarantee for an RMB 1.5 billion loan from China Eximbank to Indonesia Conch for the Cement Plant Construction Project (Phases 1 and 2). This loan (captured in this project entry) carried an unknown interest rate and a 10-year maturity. It was to be repaid on a semi annually basis starting from November 2015 to May 2023 or at the latest on June 28, 2023. On September 10, 2013, Anhui Conch Cement Company Limited signed a guarantee contract in which it agreed to issue a full guarantee for a $25 million foreign exchange capital loan (外汇资金贷款) from the Anhui Branch of China Development Bank to Indonesia Conch for Phase 1 of the Cement Plant Construction Project. This loan (captured in Record ID#49813) carried an interest rate of 6-month LIBOR (0.380% in September 2013) + a 0.379% margin and a 10-year maturity. On November 16, 2015, Anhui Conch Cement Company Limited signed a guarantee contract in which it agreed to issue a full guarantee for a $50 million loan from the Industrial and Commercial Bank of China (Europe) S.A to Indonesia Conch for working capital purposes. This loan (captured in Record ID#85371) carried an interest rate of 3-month LIBOR (0.371% in November 2015) + a 1.60% margin and a 3-year maturity. The Cement Plant Construction Project was located near the South Kalimantan-East Kalimantan highway — 30 km from the city of Tanjung — within Tabalong Regency and South Kalimantan Province. It was implemented in two phases: The first phase involved the construction a 3200t/d clinker cement production line — capable of producing 3200 tons of cement per day — and the construction of a 2×18MW coal-fired power station. Phase 1 construction started on December 20, 2012 and the 3200t/d clinker cement production line was put into operation on November 18, 2014. The second phase of the project involved the construction of another 3,200 tons/day clinker production line, a 1.5 million tons/year cement grinding station, an 18 MW coal-fired power station, and other production facilities. Phase 2 construction commenced on December 18, 2014 and it was completed on May 28, 2016. China MCC17 Group Co Ltd was the contractor responsible for implementation.