ASX:GBG) said today its joint venture between China's Ansteel has secured a US1.2 billion loan facility from the banking syndicate led by China Development Bank and Bank of China (SHA:601988) (HKG:3988) for the US$2 billion Karara iron ore project, which is currently under construction in Western Australia. The 12-year Karara project loan facility is being provided on competitive commercial terms principally by the China Development Bank and Bank of China with Ansteel providing a 100 per cent parent company guarantee. The facility is based on the US 6 month London Inter-Bank Offer Rate with a competitive margin.
These documents were signed in Canberra today in presence of China's Vice President Xi Jinping and Australian Prime Minister Kevin Rudd.
The Australian and Chinese officials witnessed formal signing ceremonies for 10 deals, mainly resource-related, worth a combined A$10 billion.
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