KAZ Minerals has reached agreement on a new $300 million credit facility with the Development Bank of Kazakhstan JSC which is scheduled to be signed on 14 December.
The DBK facility will finance the completion of the Aktogay project which began commissioning of its main sulphide concentrator on 6 December.
The facility is expected to be fully drawn before the year-end and extends for a term of 8.5 years until final maturity in June 2025.
The loan is repayable in instalments with the first repayment due in June 2018, followed by semi-annual repayments in May and November of each year from 2019 until 2024 and a final repayment in June 2025.
The facility bears an interest rate of US dollar LIBOR +4.50% and contains a financial covenant which is the same as the group’s loan facilities with the China Development Bank, based on a ratio of total liabilities to total assets, with adjustments to mitigate the translation impact of movements in the US dollar/tenge exchange rate.
The group also announces that an increased commitment by ING Bank in the pre-export finance facility has been agreed for an additional $50 million under the accordion feature.
The additional commitment is expected to be drawn before the year-end. The total amount outstanding under the PXF as at 31 December 2016, including the additional drawing, is expected to be approximately $283 million.
As previously announced, the Group intends to resume discussions with the PXF bank syndicate over a longer-term refinancing of the facility, after release of its 2016 financial statements. Following the previously announced waiver obtained from the PXF lenders, the Group has also received a waiver from Caterpillar Financial Services (UK) Limited in relation to testing of the Net Debt to EBITDA covenant on 31 December 2016 under the $50 million CAT facility. Chief financial officer Andrew Southam said: “We are pleased to have secured a new, long-term facility of $300 million from the Development Bank of Kazakhstan and to have increased ING Bank NV’s participation in the PXF facility by $50 million, ahead of a planned refinancing in the first half of 2017. These transactions demonstrate the Group’s ability to access diversified sources of finance and the strong support KAZ Minerals enjoys from its lenders.”
At 2:36pm: (LON:KAZ) Kaz Minerals PLC share price was -15.3p at 398.4p
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