Narrative
Full Description
Project narrative
On July 14, 2017, financial close was reached on a deal in which a syndicate of five banks — including the Industrial and Commercial Bank of China (ICBC) — provided a $370 million AUD syndicated revolver loan to Windfield Holdings Pty Limited — a special purpose vehicle (SPV) holding company for Talison Lithium Pty Ltd and that is jointly owned by China's Tianqi Lithium Corporation (51%) and the United States' Albemarle Corporation (49%) — for the Greenbushes Lithium Mine Expansion Project. This loan carried a maturity period of four years. In addition to ICBC, the following banks contributed: Société Générale S.A. (SocGen), BNP Paribas S.A., ING Bank N.V., and HSBC Bank PLC. Each bank contributed $74.0 million AUD to the syndicated loan. Record ID#93995 captures ICBC's contribution to the $370 million AUD loan. In June 2016, Talison contracted MSP Engineering Pty Ltd to serve as the head contractor for the expansion. In 2017, construction began on a large chemical grade lithium processing plant (CGP2) at Greenbushes, the second such facility at Greenbushes. It was completed and opened in 2019, doubling production capacity at the mine to 1.34 million tons per annum. Then, on June 21, 2019, financial close was reached on a deal in which a syndicate of six banks — including ICBC and the Bank of China (BOC) — provided a $770 million AUD ($533.53 million USD) revolving credit facility (RCF) to Windfield Holdings for the Greenbushes Lithium Mine Expansion and Refinancing Project. This RCF carried a maturity period of four years and a maturity of June 21, 2023. It was secured by (i.e. collateralized against) the Greenbushes mine. The proceeds of the $770 million AUD RCF were to be used by the borrower to refinance the $370 million AUD loan and fund the majority of costs for further expansion works at Greenbushes. Each lender, including ICBC and BOC, contributed $128.33 million AUD ($88.92 million USD) to the syndicate. In addition to ICBC and BOC, the syndicated consisted of SocGen, HSBC, BNP Paribas, and ING. Record ID#93996 captures ICBC's contribution to the $770 million AUD RCF. Record ID#93997 captures BOC's contribution.
Staff comments
1. Talison Lithium Pty Ltd (Talison Lithium) is the world’s leading lithium minerals concentrate producer, supplying product for the clean energy revolution. It is a private company that is jointly owned by Tianqi Lithium Corporation (51%) (Tianqi later sold 25% of its shares to IGO) and Albemarle Corporation (49%). Talison Lithium and its predecessor companies have been producing lithium at Greenbushes since 1983 and the area is recognized as containing the world’s highest grade and largest hard rock deposit of the lithium mineral spodumene. Greenbushes is also the longest continuously operated mining area in Western Australia following the discovery of tin in 1888 and subsequent development of tantalum and lithium deposits.