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Overview

Yancoal International Resources Development provides a $170 million USD loan to Yancoal Australia for general corporate purposes (Linked to Record ID#97192)

Commitments (Constant USD, 2023)$184,249,032
Commitment Year•2012Country of Activity•AustraliaDirect Recipient Country of Incorporation•AustraliaOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 1, 2012

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% Chinese ownership

Funding agencies

State-owned companies

  • Yancoal International Resources Development Co., Ltd.

Receiving agencies

State-owned companies

  • Yancoal Australia Limited

Loan description

Yancoal International Resources Development provides a $170 million USD loan to Yancoal Australia for general corporate purposes

Interest rate (t₀)•5.36%Interest type•Fixed Interest Rate

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 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. In 2014, Yancoal Australia repaid the entire outstanding $170,000,000 USD balance. The remaining $550,000,000 USD of the promised $720,000,000 USD in loan funding was issued as such: in August 2012, Yancoal International Resources Development entered into a $550,000,000 USD long-term loan facility agreement with Yancoal Australia Limited to fund the acquisition of Australian coal company Gloucester Coal Limited. This loan was provided on an unsecured basis with no covenants. Record ID#97192 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 4.461%. However, the later annual reports lists interest rates of 5.36% (see pg.125 of "Yancoal Australia Limited Annual Report 2013"). AidData has thus assumed that 4.461% was in error, and coded 5.36% as the interest rate.