China Eximbank provides $68 million loan to Serbia Zijin Copper Doo Bor for its working capital needs

On August 31, 2018, Zijin Mining Group purchased a 63% ownership stake in Rudarsko-Topioničarski Basen RTB Bor Doo (or ‘RTB Bor’) — a state-owned copper mining and smelting complex located in Bor, Serbia — in a $1.26 billion deal with the Government of Serbia. The agreement was part of the Government of Serbia’s broader efforts to sell-off indebted state-run companies to help spur growth and relieve pressure on the budget, as recommended by the International Monetary Fund (IMF). As part of the agreement, Zijin Mining Group promised to cover RTB Bor’s $200 million debt and keep 5,000 jobs at the mine. Out of the $1.26 billion, Zijin Mining Group said that $135 million would be invested in improving the environment while another $320 million in opening a new copper mine. Then, in 2021, the Paris Branch of China Eximbank and Serbia Zijin Copper Doo Bor (塞尔维亚紫金铜业) — a special purpose vehicle and joint venture of Zijin Mining Group (63% ownership stake) and Rudarsko-Topioničarski Basen RTB Bor Doo (37% ownership stake) — signed a $68 million term loan facility agreement. The borrowing terms of the loan are unknown. However, it is known that the borrower was expected to use the loan proceeds for its working capital needs. Zijin Mining Group issued a corporate guarantee in support of this loan.

Additional details

1. Serbia Zijin Copper Doo Bor was established in 2019 and made responsible for the Mining and Smelting Basin Bor (RTB Bor) for a 30-year period. 2. The Republic of Serbia Development Fund and equity funds of the Serbian government hold a 99.9999894905% equity interest in Rudarsko-Topioničarski Basen RTB Bor Doo, and the other 6 minority shareholders in aggregate hold the remaining 0.0000105095% equity interest.

Number of official sources

8

Number of total sources

16