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Overview

Bank of China participates in EUR 200 million syndicated pre-export finance (PxF) facility with Metalloinvest for general corporate debt refinancing purposes in September 2019

Commitments (Constant USD, 2023)$33,214,674
Commitment Year•2019Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 18, 2019
First repayment
Sep 17, 2023
Last repayment
Apr 23, 2026

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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On September 18, 2019, JSC Lebedinskiy GOK — a wholly-owned subsidiary of Metalloinvest JSC — signed an EUR 200 million syndicated pre-export finance (PxF) facility agreement with seven international financial institutions. More detailed locational information can be found at https://www.openstreetmap.org/way/179240640.

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Credit Agricole S.A. (Crédit Agricole Group)
  • Deutsche Bank AG
  • ING Bank N.V.
  • Intesa Sanpaolo Bank Ireland P.L.C. (formerly Sanpaolo IMI Bank Ireland P.L.C.)
  • Société Générale S.A. (SocGen or Societe Generale)
  • UniCredit Bank AG

Receiving agencies

Private Sector

  • JSC Lebedinsky GOK

Implementing agencies

Private Sector

  • JSC Lebedinsky GOK

Guarantors

Private Sector

  • JSC Holding Company Metalloinvest

Loan desecription

Bank of China participates in EUR 200 million syndicated PxF facility in 2019 with Metalloinvest for general corporate debt refinancing purposes

Grace period•4 yearsInterest type•UnknownMaturity•6.6 years

Collateral

Assignment of rights by the producer under an offtake contract, and a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited.

Narrative

Full Description

Project narrative

On September 18, 2019, JSC Lebedinskiy GOK — a wholly-owned subsidiary of Metalloinvest JSC — signed an EUR 200 million syndicated pre-export finance (PxF) facility agreement with seven international financial institutions: Société Générale (SGBT Finance Ireland Ltd), ING Bank N.V., Intesa Sanpaolo Bank Ireland Plc, Bank of China, UniCredit Bank, Crédit Agricole CIB, and Deutsche Bank. The loan carried a 6.5 year maturity and a competitive fixed interest rate. The borrower was expected to use the proceeds of the loan for general corporate and refinancing purposes. The loan was backed by a corporate repayment guarantee from Metalloinvest JSC.

Staff comments

1. The size of the contribution from Bank of China to the EUR 200 million syndicated loan is unknown. For the time being, AidData assumes equal contributions (EUR 28,571,428) across the 7 members of the syndicate. 2. A pre-export finance (PXF) facility is an arrangement in which a commodity (e.g. oil) producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed. 3. Metalloinvest JSC is the largest iron ore and hot briquetted iron (HBI) producer in Europe and CIS and the owner of one of the largest iron ore reserves in the world. Metalloinvest JSC has significant iron ore production facilities in Russia in its mining and processing plants at Lebedinsky (Lebedinsky GOK) and Mikhailovsky (Mikhailovsky GOK). The company's steel mills include the Oskol Elektrometallurgical Plant (OEMK) and Ural Steel, and a ferrous scrap unit, Ural Scrap Company.