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Overview

China Construction Bank provides a RMB 129.6 million loan to Galaxy Resources in November 2011

Commitments (Constant USD, 2023)$22,784,236
Commitment Year•2011Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 1, 2011
Last repayment (originally scheduled)
Oct 30, 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 ownership

Funding agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Receiving agencies

Private Sector

  • Galaxy Resources Limited

Loan description

China Construction Bank provides a RMB 129.6 million loan to Galaxy Resources in November 2011

Interest rate (t₀)•6.9%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In November 2011, China Construction Bank Limited (CCB) entered into a RMB 129.6 million unsecured fixed asset facility (loan) agreement with Galaxy Resources Limited. The facility carried a maturity period of five years and a floating interest rate (6.90% per annum as of May 2012), payable quarterly. As of December 31, 2011, RMB 56.5 million had been drawn down. This facility was fully drawn down as of April 30, 2012. RMB 28 million was repayable in 2013, RMB 35 million was repayable in 2014, RMB 36 million was repayable in 2015, and RMB 30.6 million was repayable in 2016.

Staff comments

1. Galaxy Resources Limited was an Australian-based integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange. Galaxy wholly owns the Mt Cattlin project and a Lithium Carbonate Plant in China’s Jiangsu province. Creat Resources Holdings Ltd (CRHL), a subsidiary of Chinese investment company Creat Group, was one of the shareholders of Galaxy Resources. 2. AidData has marked project_status field as Completion because Chinese financing had been drawn down/disbursed. 3. There is evidence that some of Galaxy Resources' borrowings supported its activities in China, specifically relating to the Jiangsu plant, in addition to its activities in Australia; however, AidData has not yet been able to identify any specific breakdown of the use of the loan proceeds that could clarify this. This issue merits further investigation.