CDB and CITIC Bank International participate in $600 million syndicated pre-export financing facility for April International Group (AIG) Pulp and Paper Project

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. 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.

Additional details

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.

Number of official sources

0

Number of total sources

5