Skip to content
AidData logo

Overview

Bank of China contributes to $500 million syndicated pre-export financing facility with JSC Turgai Petroleum (Linked to Record ID#54527)

Commitments (Constant USD, 2023)$113,649,715
Commitment Year•2011Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanOverseas Jurisdiction•United KingdomSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2011
Last repayment
Sep 29, 2016

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Citibank, N.A.
  • Deutsche Bank AG
  • Raiffeisen Bank International AG

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • JSC Turgai Petroleum

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • JSC Turgai Petroleum

Security / collateral agents

Joint Venture/Special Purpose Vehicles

  • JSC Turgai Petroleum

Loan desecription

In 2011, Bank of China contributes to USD 500 million syndicated pre-export financing facility with JSC Turgai Petroleum, Kazakhstan

Grant element•13.2157%Interest rate (t₀)•3.40783%Interest type•Variable Interest RateMaturity•5 years

Collateral

Sales from the export of 2 million metric tons of crude oil to China

Narrative

Full Description

Project narrative

In October 2011, JSC Turgai Petroleum (Russian: «Тургай Петролеум») — a special purpose vehicle that is jointly owned by China National Petroleum Corporation (66.6% equity stake) and KazMunayGaz (33.3% equity stake) — signed a $500 million syndicated pre-export financing loan facility agreement. Five lenders participated in the syndicate: Bank of China (London), BNP Paribas (Suisse), Citibank (Kazakhstan), Deutsche Bank (Amsterdam) and Raiffeisen Bank International. The borrowing terms of the loan were as follows: 5-year maturity and 3.445% annual interest rate (LIBOR plus a 2.85% margin). The loan with secured with (collateralized against) the supply/sale of 2 million metric tons of crude oil to China distributed through the Atasu-Alashankou pipeline. The construction of the Atasu-Alashankou Section of Kazakhstan-China Oil Pipeline Project was supported by an ICBC loan (captured via Record ID#54527).

Staff comments

1. Some sources indicate that JSC Turgai Petroleum, which operates the Kumkol North and East Kumkol fields in the South Turgai basin, is jointly owned by PetroKazakhstan (50% equity stake) and Lukoil (50% equity stake). Other sources indicate that JSC Turgai Petroleum is jointly owned by PetroKazakhstan (50% equity stake) and KVK-Petroleum (50% equity stake). 2. The authorized arranger of the loan was the Bank of China (London). 3. In 2012, JSC Turgai Petroleum’s production volume amounted to 2.14 million tons of oil and 146 million cubic meters of marketable gas. 4. Bank of China’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($100 million) across the five members of the loan syndicate. 5. AidData has estimated the all-in interest rate by adding 2.85% to the average 6-month LIBOR rate in October 2011 (0.595%).