ICGL reported that a USD 1 billion stainless steel plant in Indonesia has received project financing from the Bank of China and a group of onshore and offshore lenders. The multi layered project financing included a dual currency facility allowing money to be drawn out in both RMB and USD. The facility has also been designed to benefit from coverage by commercial insurance and protection by China state owned insurance company Sinosure. The group of 11 banks contributing to the financing were onshore weighted, comprising seven onshore and four offshore lenders. The lenders included Bank of China, China Development Bank, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, CITIC Bank, China Merchants Bank and Tai Feng Bank.
The plant, owned by Shanghai Stock Exchange listed logistics services company Xiamen Xiangyu, comprises a nickel mine, a 2.5 million tonne per year stainless steel smelting plant, a 1,440 MW thermal power project and a 40 million tonne multi functional port.
Pinsent Masons advised the Bank of China on the financing, with lead partner Kanyi Lui