Yanzhou Coal Mining provides a $243 million USD loan to Yancoal Australia to fund coupon payable on the Subordinated Capital Notes

Project narrative

On December 22, 2014, Yanzhou Coal Mining Company Limited (now known as Yankuang Energy Group Company Limited) and four Yanzhou subsidiaries entered into a $807,000,000 USD shareholder debt facility agreement with Yancoal Australia Limited — an Australia-incorporated coal mining company majority owned by Yanzhou Coal Mining — to fund coupon payable on the Subordinated Capital Notes (SCNs). This loan carried a maturity period of 10 years with the principal repayable at final maturity date of December 31, 2024 and an interest rate of 7% This loan was provided on an unsecured and subordinated basis with no covenants. The purpose of this facility was to fund the coupon payable on subordinated perpetual convertible unsecured capital notes issued by Yancoal Australia for the first five years post their issuance On December 31, 2014, Yancoal Australia issued 18,005,102 SCNs at an issue price of $100 USD per note, raising $1.801 billion USD in proceeds. As of June 30, 2015, no amounts had been drawn down from this facility. As of December 31, 2015, $73.2 million USD ($100 million AUD) had been drawn down. As of December 31, 2016, $136 million USD ($188 million AUD) had been drawn down. As of December 31, 2017, $243 million USD ($312 million AUD) had been drawn down see pg.230 of "Yancoal Australia Ltd Global Offering dated November 26, 2018" and pg.134 of "Yancoal Australia Limited Annual Report 2017"). On January 31, 2018, the remaining SCNs were redeemed or converted into equity of Yancoal. As a result of this, the facility limite was reduced to the drawn down amount of $243 million USD. As of June 30, 2018, the outstanding balance of the loan was $243 million USD. During 2022, Yancoal Australia repaid the entire $243 million USD facility.