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Overview

China Development Bank contributes to $600 million syndicated pre-export financing facility for April International Group (AIG) Pulp and Paper Project (Linked to Record ID#100733)

Commitments (Constant USD, 2023)$136,379,658
Commitment Year•2011Country of Activity•IndonesiaDirect Recipient Country of Incorporation•British Virgin IslandsSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2011
Last repayment (originally scheduled)
Nov 29, 2016

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • Banco Santander, S.A. (Santander Group) (formerly Banco Santander Central Hispano, S.A.)

State-owned Banks

  • WestLB AG

State-owned Commercial Banks

  • China CITIC Bank Corporation Limited

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Gold Crest Capital

Guarantors

Private Sector

  • Asia Pacific Resources International Ltd.

Loan description

CDB and CITIC Bank International contributions to USD 600 million pre-export financing facility for AIG Pulp and Paper Project

Interest type•UnknownMaturity•5 years

Collateral

Share pledges of operating companies in Indonesia; a floating charge over the assets (pulp inventories) of operating companies in Indonesia; assignment of both domestic sales in Indonesia and exports

Narrative

Full Description

Project narrative

In December 2011, Gold Crest Capital — a special purpose vehicle (SPV) that is legally incorporated in the British Virgin Islands and that is wholly-owned by another SPV known as April International Group (AIG) Ltd (also legally incorporated in the British Virgin Islands) — signed a $600 million syndicated pre-export financing (PxF) agreement with ABN Amro (facility agent), Santander, China Development Bank, CITIC Bank International and WestLB for the April International Group (AIG) Pulp and Paper Project. The PxF facility (loan) carried a 5-year maturity and an unknown interest rate. Record ID#96348 captures the estimated financial commitment of China Development Bank, while Record ID#100733 captures the estimated financial commitment of CITIC Bank International. However, it is known that the loan was secured by (i.e. collateralized with) share pledges of operating companies in Indonesia, a floating charge over the assets (pulp inventories) of operating companies in Indonesia, and assignment of both domestic sales in Indonesia and exports. It is also known that the loan was backed by a corporate guarantee from Asia Pacific Resources International Ltd. The borrower was expected to use the loan proceeds to support the pulp and paper operations of April International Group (AIG) Ltd in Indonesia. More specifically, the borrower was expected to use the loan proceeds to support capital expenditure (capex), working capital, general corporate, and debt refinancing needs of AIG.

Staff comments

1. The individual contributions of China Development Bank and CITIC Bank International are unknown. For the time being, AidData assumes equal contributions ($120 million) across the five known members of the loan syndicate. 2. Ashurst served as a legal adviser on the transaction.