China Construction Bank provides $500 million loan to CNPC-AktobeMunaiGaz for unspecified purposes

On November 13, 2019, China Construction Bank 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 in western Kazakhstan — signed a $500 million loan agreement for unspecified purposes. The loan carried an interest rate of 3-month LIBOR plus a 2.5% margin and 3-year maturity (final maturity date: December 2022). As of December 2019, the loan had achieved a 60% disbursement rate ($300 million out of $500 million). The loan’s outstanding (principal) amount was $300 million as of December 31, 2019, December 31, 2020, and December 31, 2021.

Additional details

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 2.5% to average 3-month LIBOR in November 2019 (1.905%). 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.

Number of official sources

6

Number of total sources

9