IFC Proposes Investing $900M in Oyu Tolgoi via Syndicated Loans

August 23 (Cbonds) The estimated total Project cost is $12.0 billion.IFC's proposed investment is a $300 million senior A Loan together with a B Loan of up to $600 million loan to be syndicated to international commercial banks, as part of a proposed $4billion project debt financing. Co-arrangers of the proposed debt financing are European Bank for Reconstruction and Development (EBRD),Export Development Canada (EDC), Standard Chartered Bank, BNP Paribas, US Export Import Bank (US EXIM), and Multilateral Investment Guarantee Agency (MIGA). The balance of the funding for the Project is expected to come from Sponsor equity, shareholder loans and Project generated cash flows.

The Project owner and developer is a Mongolian company, Oyu Tolgoi LLC indirectly owned 66% by Ivanhoe Mines Ltd, Canadian public company listed on the Toronto Stock Exchange and 34% byErdenes Oyu Tolgoi LLC, a Mongolian State owned company.

The Project is located in the southern Gobi region of Mongolia, approximately 600 km South of the capital city Ulan Bataar and 80 km North West of the border post and rail head with China at Gashunn Sukhait.

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