Kazakh copper company Kaz Minerals has announced a US$50mn revolving credit facility (RCF) with Caterpillar Financial Services UK (Cat Financial) as sole lender.

Cat Financial, a subsidiary of Caterpillar, is a supplier of mining equipment to Kaz’s Bozshakol and Aktogay projects, but this is the first time the firm is providing a loan to Kaz Minerals.

The RCF is available for drawing for three years from the date of signing. Afterwards, the facility is repayable in four equal quarterly instalments. An interest rate of Libor plus 4.25% is payable on amounts outstanding under the RCF.

Andrew Southam, CFO at Kaz Minerals, says: “This new facility with Cat Financial provides Kaz Minerals with additional liquidity during the construction and ramp-up of our major growth projects and broadens the group’s debt portfolio.”