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Overview

Agricultural Bank of China contributes to $1 billion pre-export finance facility to IC SUEK LTD LLC (Linked to Record ID#96816)

Commitments (Constant USD, 2023)$86,498,957
Commitment Year•2019Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2019
Last repayment (originally scheduled)
May 30, 2024

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% host country ownership

Funding agencies

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)

Cofinancing agencies

Intergovernmental Organizations

  • Black Sea Trade and Development Bank

Private Sector

  • Alfa-Bank JSC
  • Banca Popolare Di Milano (Banco BPM) S.p.A
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Credit Suisse AG
  • Deutsche Bank AG
  • Intesa Sanpaolo S.P.A. (formerly Cariplo/Banca Intesa/BCI)
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Raiffeisen Bank International AG

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • IC SUEK LTD LLC

Guarantors

Private Sector

  • Suek AG

Loan desecription

ICBC and ABC contribution to $1 billion pre-export finance facility to IC SUEK LTD LLC for unknown purpose

Interest type•UnknownMaturity•5 years

Collateral

(1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited.

Narrative

Full Description

Project narrative

In June 2019, IC SUEK LTD LLC, a subsidiary of the Siberian Coal Energy Company (SUEK), entered into a $1 billion pre-export finance facility with an international syndicate of lenders, including the Industrial and Commercial Bank of China (ICBC) and the Agricultural Bank of China. The loan carried a maturity date of five years, maturing on June 2024. The purpose and interest rate of the loan are unknown. Participants in the lending syndicate included Alfa-Bank, Deutsche Bank, Industrial and Commercial Bank of China (ICBC), Commerzbank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Black Sea Trade and Development Bank, Raiffeisen Bank, Credit Suisse, Banco BPM, and Agricultural Bank of China (ABC). The facility was secured by the suretyship of the IC SUEK LTD LLC, SUEK-Kuzbass, SUEK-Khakasia and Tugnuisky Opencast Mine. The facility was guaranteed by SUEK AG. ICBC's estimated contribution is captured via Record ID#96816 and ABC's estimated contribution is captured via Record ID#96817.

Staff comments

1. For the time being, AidData assumes equal financial contributions by all syndicate lenders. ABC's contribution ($83,333,333) was derived by dividing the total facility amount ($1 billion) by the total number of lenders (8). 2. A pre-export finance (PXF) facility an arrangement in which a commodity (e.g. oil) producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed. 3. Suretyship is an accessory agreement through which one assumes liability for the obligations of another.