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EBRD says arranges $1.2 bln syndicated loan for Mongolian mine

Published 2015-12-15, 05:18 a/m
EBRD says arranges $1.2 bln syndicated loan for Mongolian mine
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LONDON, Dec 15 (Reuters) - Development bank EBRD said on
Tuesday it had arranged its biggest ever syndicated loan, a $1.2
billion facility that will contribute towards an overall $4.4
billion package of financing for Mongolia's Oyu Tolgoi copper
mine.
The overall financing deal was announced earlier in the day
by mining giant Rio Tinto RIO.L , for which the Mongolian mine
is one of three big growth projects it is working on in the face
of a commodity price downturn. ID:nL3N14426Q
The project is 66 percent owned by Rio's Turquoise Hill
TRQ.TO arm and 34 percent owned by the Mongolian government.
The European Bank for Reconstruction and Development (EBRD)
said in a statement that $400 million of the syndicated loan
would be provided on its own account, while the rest would come
from 15 commercial and development banks.
The $400 million loan is also one of the biggest in the
bank's history, a bank spokeswoman said.
Set up initially to invest in eastern Europe's ex-communist
states, the EBRD started operating in Mongolia in 2006. Since
then it has committed over $1 billion to the country's economy,
it said.
The EBRD has been criticised in the past for lending to big
fossil fuel and mining projects.
But it said in its statement that "once fully operational,
the underground mine is expected to provide for up to a third of
Mongolia's gross domestic product and contribute to rising
standards of living in the country".

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