Comprising a nickel mine, a 2.5 million mt/year stainless steel smelting plant, a 1,440MW (8X135MW) thermal power project and a 40 million mt multi-functional port, this project is the largest overseas investment from Xiamen in China’s history and is one of the largest project financings in Asia in 2020 and promoted by the Chinese government as a "a classic example of Belt-and-Road Initiative in practice".
The project financing comprised a complex, multi-layered dual-currency facility permitting drawings in both RMB and USD and is structured to benefit from coverage from both SINOSURE and commercial insurance. The syndicated financing facility comprised of 7 onshore and 4 offshore lenders, including 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.
To ensure bankability, a multi-jurisdictional credit enhancement arrangement was put in place and a robust inter-creditor mechanism was negotiated between different creditor groups and bondholders.
Kanyi Lui, lead partner from Pinsent Masons said, "As we continue to see more sophisticated financing deals in China due to higher funding costs and increasing regulatory scrutiny, having the right expertise and resource across multiple jurisdictions and throughout the project life cycle gives us a unique platform to ensure we deliver the best outcome for all stakeholders and the wider community."
The Pinsent Masons team spanned across Beijing, Shanghai, Hong Kong and Singapore offices comprising specialists across in mining, construction, energy, infrastructure and financing. The teams included partners Kanyi Lui, Bryan Tan, David Platt, Paul Haswell and James Harris, legal director Norman Leung, solicitor Tiffany Ho, and associates Winnie Nie and Benjamin Tay.