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Overview

Yanzhou Coal Mining provides a $596 million USD loan to Yancoal Australia for the payment of the promissory notes for Gloucester Coal shareholders (Linked to Record ID#97210)

Commitments (Constant USD, 2023)$616,246,890
Commitment Year2013Country of ActivityAustraliaDirect Recipient Country of IncorporationAustraliaSectorIndustry, Mining, ConstructionFlow TypeLoan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 8, 2013
Start (actual)
Jan 1, 2013
End (actual)
Jan 1, 2013
First repayment (originally scheduled)
Jun 8, 2015
Last repayment (originally scheduled)
Jan 7, 2018

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

  • Yankuang Energy Group Company Limited (formerly Yanzhou Coal Mining Company Limited)

Receiving agencies

State-owned companies

  • Yancoal Australia Limited

Loan description

Yanzhou Coal Mining provides a $596 million USD loan to Yancoal Australia for the payment of the promissory notes for Gloucester Coal shareholders

Grace period2.416 yearsInterest rate (t₀)5.24%Interest typeFixed Interest RateMaturity5 years

Narrative

Full Description

Project narrative

As announced on January 8, 2013, Yanzhou Coal Mining Company Limited (now known as Yankuang Energy Group Company Limited) entered into a $596,000,000 USD long term facility agreement with Yancoal Australia Limited — an Australia-incorporated coal mining company majority owned by Yanzhou Coal Mining — for the payment of the promissory notes for Gloucester Coal shareholders. This loan carried a maturity period of five years, with the principal repayable in regular installments beginning from June 2015 (a grace period of approximately 2.416 years), a final maturity date of December 31, 2017, and an average interest rate of 5.24% per annum, inclusive of arrangement fees, and was provided on an unsecured basis with no financial covenants. The proceeds of this facility were used by the borrower to repay promissory notes in connection with the capital return for previous Gloucester Coal Limited shareholders (which Yancoal had acquired and merged with in 2012). The notes were settled in full in January 2013. In August 2013, Yancoal Australia repaid $300,000,000 USD of this facility, leaving an outstanding balance of $296,000,000 USD; Yancoal Australia used the proceeds of an August 2013 three-year $300,000,000 USD facility from Yancoal International (Holding) Co., Limited — a wholly-owned subsidiary of Yanzhou Coal — to repay the $300,000,000 USD of the $596,000,000 USD facility (the $300 million USD facility is captured by Record ID#97210). In 2014, Yancoal Australia repaid the remaining outstanding balance of the facility.

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 38 of "Yancoal Australia Limited Half-Year Financial Report for the half-year ended 30 June 2013", this loan was charged at an interest rate of 5.2941%. However, the later annual reports lists interest rates of 5.24% (see pg.125 of "Yancoal Australia Limited Annual Report 2013"). AidData has thus assumed that 5.2941% was in error, and coded 5.24% as the interest rate.