China Development Bank provides $200 million loan to KMK Munai for unspecified purposes

On April 11, 2014, China Development Bank and KMK Munai JSC — a special purpose vehicle and a majority-owned subsidiary of CNPC-Aktobemunaigas JSC that develops oil and gas fields within Kokzhide — signed a $200 million loan agreement. The loan carries an interest rate of 6-month LIBOR plus a 3% margin and a maturity of 8 years (final maturity date: 2022). As of 2014, the loan had achieved a 40% disbursement rate ($80 million out of $200 million). By the end of 2015, the loan had achieved a 100% completion rate ($200 million out of $200 million). The loan’s outstanding (principal) amount was $116,667,000 as of December 31, 2019, $83,333,000 as of December 31, 2020, and $50,000,000 as of December 31, 2021.

Additional details

1. KMK Munai JSC is a majority-owned subsidiary of CNPC-AktobeMunaiGaz JSC (CNPC AMG). 2. 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 6-month LIBOR in April 2014 (0.324%). 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