Hong Kong-based Trade Finance Corporation (TFC) has signed off on a US$10mn-plus pre-export loan for a metal smelter in the western Chinese province of Shanxi, home to 5% of the world’s recognised coal reserves. The smelter is one of the top five in the industry, having a production capacity of over 100,000 tpa.
TFC, an old ally of the smelter-owner, has also been mandated to arrange an equity investment into this smelter as a precursor to an expected initial public offering. It marks the fourth such loan that TFC has arranged for the group, which produces more than 100,000 tonnes per annum. The loan was granted by a European bank in Singapore.
The offtaker is an Australian trader.
TFC Capital has also been mandated to arrange equity investment into this smelter as a pre-requisite for an IPO. This follows TFC group strategy of arranging equity deals off the back of debt deals which provide the sound liquidity.
TFC also completes further supply chain financing, this time for the meat and poultry trade.