Amendment to CDB facilities

KAZ Minerals PLC (“KAZ Minerals” or “the Group”) has signed an amendment to its existing $2.3 billion debt facilities  with  China Development Bank Corporation (“CDB”)  and  Joint Stock Company  “Sovereign Wealth Fund  “Samruk-Kazyna”  (“Samruk-Kazyna”) obtained principally for  the development of  the  Bozshakol and Bozymchak projects

Key changes to the terms of the amended facilities are as follows:

-  The facilities will become bilateral between KAZ Minerals and the CDB

-  Interest rate lowered from USD LIBOR plus 4.80% to USD LIBOR plus 4.50%

-  Arrangement fee of 0.5%, 60% payable in December 2014 and 40% payable in January 2016

-  Balance  sheet  covenants  aligned  with  those  applicable  to  the  $1.5  billion  Aktogay  CDB  facilities, which  include  adjustments to mitigate the translation  impact  of movements  in  the  US  dollar/tenge exchange rate

 

As at 30 November 2014,  the  principal balance outstanding on the facilities  was $2,086 million. Repayment of the previous facilities with Samruk-Kazyna and drawing of the new facilities directly from CDB is expected to occur during Q1 2015. All other material terms of the facilities, including the repayment schedule and final maturity, remain unchanged.

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KAZ  Minerals  PLC  (“KAZ Minerals”) is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan. It is a leading copper producer in Kazakhstan with five operating mines and four  concentrators.  Total  copper  cathode  output  in  2014  from  continuing  operations  is  expected  to  be between 80 kt and 85 kt.

 

The Group has two major copper projects under construction, Bozshakol and Aktogay, and a third, Koksay, at scoping stage. These projects are expected to deliver one of the highest growth rates in the industry and transform KAZ Minerals into a company dominated by world class open pit copper mines.

 

KAZ Minerals PLC is listed on the London Stock Exchange, the Kazakhstan Stock Exchange and the Hong Kong Stock Exchange. Restated pro forma revenues from continuing operations in 2013 were $933 million and restated EBITDA for the continuing operations in 2013 was $389 million. KAZ Minerals employs around 10,000 people, principally in Kazakhstan.

 

The  CDB/Samruk-Kazyna  debt  facilities  of  $2.7 billion  were secured  by KAZ Minerals in December 2009 for the development of Bozshakol, Bozymchak and  other growth projects. The facilities were fully drawn by January  2013.    In  January  2014,  $400  million  allocated  to  projects  that  were  unlikely  to  proceed  in  the medium term was repaid early. As at 30 November 2014,  the  principal  balance outstanding on the facilities was $2,086 million.  The facilities have a final maturity of between 12 and 15 years from the date of first drawing with repayments commencing three years from the date of first drawdown.

 

The  Aktogay  CDB  facilities  of $1.5 billion  are  comprised of  two bilateral agreements with CDB  signed  in December  2011.  The first agreement is for up to $1.34 billion and the second agreement for up to RMB1.0 billion  (approximately  $158  million  at  the  date  of  signing).  Both  agreements  are  on  similar  terms  and conditions.  The facilities  have  a final  maturity  of  15  years from the  date  of first  drawing  with  repayments commencing  three  years  from  the  date  of  first  drawdown.  As  at  30  November  2014,  $1.3  billion  of  the Aktogay CDB facilities remained available for drawdown.

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