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Overview

Bank of China provides $500 million loan to CNPC-AktobeMunaiGaz for working capital purposes (Linked to Record ID#96017)

Commitments (Constant USD, 2023)$568,248,574
Commitment Year•2011Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2011
Last repayment (originally scheduled)
May 30, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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Bank of China provides a loan to CNPC-AktobeMunaiGaz, whose corporate office is located in Aktobe, Kazakhstan. More detailed locational information can be found at https://www.openstreetmap.org/way/249327557 or https://goo.gl/maps/uEh35jupJkTPWxeT6.

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% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • CNPC AktobeMunaiGas JSC (CNPC AMG)

Loan desecription

Bank of China provides $500 million loan to CNPC-AktobeMunaiGaz for working capital purposes

Grant element•13.5379%Interest rate (t₀)•3.25288%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•5 years

Narrative

Full Description

Project narrative

In June 2011, Bank of China and CNPC-AktobeMunaiGaz JSC (CNPC AMG) — a special purpose vehicle and joint venture of CNPC and AktobeMunaiGaz (a Kazakh state-owned oil company) that develops hydrocarbon deposits in the Aktobe region of western Kazakhstan — signed a $500 million loan agreement for working capital purposes. The loan carried an interest rate of 3-month LIBOR plus a 3% margin and 5-year maturity (final maturity date: June 2016). However, the loan was eventually rescheduled and its final maturity date was extended to 2021. The loan rescheduling is captured via Record ID#96017. The borrower was responsible for making interest payments every 3 months. As of December 31, 2019 and December 31, 2020, the loan’s (principal) outstanding amount was $420,000,000. By December 31, 2021, the loan had been repaid in full.

Staff comments

1. CNPC-AktobeMunaiGaz JSC (CNPC AMG) is a Kazakh-Chinese joint venture that owns the Zhanazhol, Kenkiyak (pre-salt) and Kenkiyak (post-salt) oil fields in Kazakhstan. It is one of the five largest oil companies in Kazakhstan. In 1997, it was 60.3% owned by CNPC and 39.7% owned by AktobeMunaiGaz (a Kazakh state-owned oil company). CNPC gained its 60.3% ownership stake in CNPC AMG after winning a tender on the privatization of AktobeMunaiGaz in 1997. Then, In 2003, CNPC paid over $150 million to increase its ownership stake in the joint venture to 85.42%. 2. AidData has estimated the all-in interest rate that applies to the loan by adding 3% to average 3-month LIBOR in June 2011 (0.248%). 3. The 2020 annual report (http://cpf.cnpc.com.cn/cpf/gsnbxx/202105/df43f42362d94811a59a637b2297083c/files/4c05881d6c91435b818f2ce5a8062035.pdf) of CNPC Finance (HK) Limited — the lending arm of CNPC — suggests that it may have issued a loan to CNPC-AktobeMunaiGaz JSC in 2020. This issue warrants further investigation.