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Overview

China Construction Bank provides a RMB 114 million loan to Galaxy Resources in September 2011 for working capital purposes

Commitments (Constant USD, 2023)$20,041,689
Commitment Year•2011Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2011
Last repayment (originally scheduled)
Aug 31, 2012

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 114 million loan to Galaxy Resources in September 2011 for working capital purposes

Interest rate (t₀)•6.56%Interest type•Fixed Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

In September 2011, China Construction Bank Limited (CCB) entered into a RMB 114 million unsecured working capital facility agreement with Galaxy Resources Limited. The proceeds of this facility were to be used for working capital purposes. The facility carried a maturity period of one year and a fixed interest rate of 6.56% per annum, payable monthly. As of December 31, 2011, RMB 24 million had been drawn down. As of April 30, 2012, RMB 103 million had been drawn down. RMB 60 million and RMB 54 million were repayable in 2012 and 2013, if fully drawn.

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. 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.