KAZ Minerals PLC on Dec. 13 said it secured a new US$300 million credit facility with the Development Bank of Kazakhstan JSC to fund the completion of the Aktogay copper project in Kazakhstan.
The company expects to fully draw the facility by the end of the year. Repayment will start in June 2018 and the loan will reach final maturity in June 2025. It will bear interest at U.S. dollar LIBOR +4.50%.
KAZ also secured a US$50 million increase in the commitment by ING Bank NV in the existing pre-export finance facility.
The additional commitment is expected to be drawn before year-end, which will push the total amount outstanding under the facility to about US$283 million, as of Dec. 31.
Recently, KAZ cut the budget of the Aktogay project by US$100 million, to US$2.10 billion due to faster construction of the concentrator, a partial release of contingency and the sustained weak Kazakhstani tenge.
Aktogay started commissioning of its main sulfide concentrator Dec. 6.