Chinese Bank extends maturity period of loan for Kashagan

By  Trend

Kazakhstan and China have agreed to extend the maturity period of the loan provided by the Industrial and Commercial Bank of China (ICBC) for the acquisition of a stake in "KMG Kashagan B.V." by the Kazakhstan National Welfare Fund "Samruk-Kazyna" until 2022, the Fund said in a statement.

The relevant agreement was reached during the meeting of the Chairman of the Board of the National Welfare Fund "Samruk-Kazyna" Akhmetzhan Yessimov with the Chairman of the Board of Directors of ICBC Yi Huiman.

Yessimov also agreed to reduce the interest rate on the loan.

In addition, the parties signed a Memorandum of cooperation and discussed further prospects.

Huiman noted that the Industrial and Commercial Bank of China (ICBC) is interested in cooperation in three areas: placement of bonds, participation in the program of privatization of the Fund's assets, as a strategic investor and financing of specific projects.

In 2015 the "National Welfare Fund "Samruk-Kazyna" Joint-Stock Company (JSC) has attracted a five-year syndicated loan to finance the acquisition of 25 percent of the shares of Private Limited Liability Company "KMG Kashagan B.V." in the amount of $1.5 billion, in which ICBC acted as the authorized representative of one of the leading arrangers of the financing.