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Host Country: Brunei |
Industry/Sector: Energy |
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Sponsor: Zhejiang Hengyi Group Co., Ltd. |
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Borrower: HENGYI INDUSTRIES SDN BHD |
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Total Investment: USD 3.5 bln |
Debt Amount:USD 1 .75 bln
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Financing Terms: 12 YEARS
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Purpose of Financing: |
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This loan is only for the construction of the Project, specifically: Construction scale: The annual output of xylene (PX) 1.5 million tons, 478,600 tons of benzene,petrol, aviation and diesel 5.5398 million tons, 558,800 tons of LPG and a small amount of heavy aromatic hydrocarbons, sulfur, etc. construction content: 8 million tons/year atmospheric and vacuum distillation unit, 1.5 million tons/ year hydrocarbon Recovery unit, 2.2 million ton/year hydrocracking unit, 1.5 million ton/year aromatic hydrocarbon unit, 2.2 million ton/year diesel hydrofining unit, 1.3 million ton/year aviation kerosene hydrofining unit, 1 million ton/year flexible coking Unit, 700,000 ton/year naphtha isomerization unit, 2x6million tons/ Annual sulfur Recovery unit and corresponding single point mooring, coal-fired power station, oil and chemical products Wharf, seawater desalination supporting system. |
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Guarantee Structure: |
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1. Joint liability guarantee by Hengyi Petrochemical Co. and Zhejiang Yisheng Petrochemical Co.
2. Share pledges by Zhejiang Hengyi Group Co., Ltd and related subsidiaries.
3. The actual controller of the Zhejiang Hengyi Group Co., Ltd. Chu Jianlin provides personalunlimited joint liability guarantee with the whole of his personal property for the Project.
4. Collateral of sales revenue account. |
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Participating Banks and Roles: |
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Lead Bank/Correspondent Bank: China Development Bank
Joint-Lead Bank: The Export-Import Bank of China (Zhejiang Branch)
Initial Lenders: Bank of China (Zhejiang Branch); Industrial and Commercial Bank of China; China Merchants Bank (Hangzhou Xiaoshan Branch) |
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Overview and Highlight of Project: |
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Hengyi Industrial (Brunei) Co., Ltd.’s petrochemical project with annual processing of 8 million tons of crude oil is a core national Belt and Road project in Brunei. Its development and construction will effectively promote the development of strategic cooperation between China and Brunei. This project adopts various means to provide financing for the project. Our bank gives full play to the advantages of development finance, and promotes the project in the form of private placement, domestic syndicate, Islamic financing, CITIC insurance, regional bond and shareholder loan to ensure that the project finalizes its financing.
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Awards or Public Evaluation: |
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In June 2011, Sultan, the supreme head of state of Brunei, formally approved Hengyi Group's investment plan in Brunei, requiring the Economic Development Bureau (BEDB) to work closely with Hengyi Group. In April 2013, the Sultan of Brunei paid a state visit to China, which was listed as a high-level visit project.
Before visiting Brunei, Xi Jinping, President of the People’s Republic of China has written an article named Jointly write a new chapter of China-Brunei relations. It points out that since the beginning of this year, economic cooperation and trade between the two countries have expanded rapidly with China becoming one of Brunei’s most important partners. Two flagship projects, the Hengyi Petrochemical Project on Pulau Muara Besar and the Guangxi-Brunei Economic Corridor are making good progress.
In the JOINT STATEMENT BETWEEN THE PEOPLE'S REPUBLIC OF CHINA AND BRUNEI DARUSSALAM BANDAR SERI BEGAWAN, NOVEMBER 19, 2018, the two Leaders agreed to further strengthen bilateral trade and investment cooperation, work closely to implement the Memorandum of Understanding on strengthening infrastructure cooperation, push forward the cooperation on the Hengyi Industries Sdn Bhd refinery and petrochemical plant on Pulau Muara Besar, Brunei Darussalam, in a safe and timely manner. |
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Other Information: |
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N/A
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