Narrative
Full Description
Project narrative
After June 2012, Yancoal International Resources Development Co., Ltd. — a wholly-owned subsidiary of Chinese state-owned Yanzhou Coal Mining Company Limited (now known as Yankuang Energy Group Company Limited) — agreed to provide at least $720,000,000 USD in loan funding with a maturity period of at least five years and a market competitive interest rate with no financial covenants to Yancoal Australia Limited — an Australia-incorporated coal mining company majority owned by Yanzhou Coal Mining — to fund its net current liabilities as of June 30, 2012. Then, in August 2012, Yancoal International Resources Development Co., Ltd. — a wholly-owned subsidiary of Chinese state-owned Yanzhou Coal Mining Company Limited (now known as Yankuang Energy Group Company Limited) — entered into a $550,000,000 USD long-term loan facility agreement with Yancoal Australia Limited — an Australia-incorporated coal mining company majority owned by Yanzhou Coal Mining — to fund the acquisition of Australian coal company Gloucester Coal Limited. This loan was provided on an unsecured basis with no covenants. The loan carried a final maturity date of May 12, 2022 (a maturity period of 9.75 years). It carried a fixed interest rate of 7.00%. This facility was fully drawn down in 2012 to fund the acquisition. In December 2014, Yancoal Australia repaid $434,003,100 USD of the loan, leaving an outstanding balance of about $116.0 million USD (specifically $115,996,900 USD). In October 2018, Yancoal Australia repaid the remaining $116 million USD, leaving the facility fully repaid. The acquisition and merger with Gloucester was completed (accounting wise) on June 27, 2012, officially implemented on July 6, 2012. Gloucester's principal activities were the production and selling of metallurgical and thermal coal from the Gloucester Basin, namely the Stratford open-cut mine, the Duralie open-cut mine, the Donaldson open-cut mine, the Abel and Tasman underground mines, and the Middlemount Joint Venture mine. The remaining $170,000,000 USD of the promised $720,000,000 USD in loan funding was issued as such: in the second half of 2012, Yancoal International Resources Development issued a $170,000,000 USD loan to Yancoal Australia Limited. This loan carried a fixed interest rate of 5.36% per annum, inclusive of arrangement fees. Record ID#97198 captures this loan.
Staff comments
1. Yankuang Energy Group Company Limited (formerly known as Yanzhou Coal Mining Company Limited) is a Chinese state-owned company and a subsidiary of Shandong Energy Group Co. Yankuang Energy Group Company Limited is the ultimate parent of Yancoal Australia Ltd. via Yanzhou Coal Mining Company Limited, the PRC-incorporated joint stock limited coal mining company. 2. According to page 104 of "Yancoal Australia Limited Annual Report 2012", this loan was charged at a fixed interest rate of 5.730%. However, the later annual reports lists fixed interest rates of 7.00% (see pg.125 of "Yancoal Australia Limited Annual Report 2013"). AidData has thus assumed that 5.730% was in error, and coded 7.00% as the interest rate.