On October 17, Integrated steel project in MCKIP with 3.5 MT/PA launched syndicated loan withdrawal procedure with a financing amount of nearly US$1 billion, which is also the largest overseas direct loan financing project In Guangxi at present.
Alliance Steel was jointly invested by Guangxi Beibu Gulf Port International Group Co., Ltd. and private enterprise, Guangxi Shenglong Metallugical Co., Ltd., in 2014 with total investment of 1.4 billion US dollars. Estimated annual sales revenue after production is US$1.967 billion, reaching the scale of annual steel production of 3.5 million tons. This project is not only a key project introduced by the Malaysian government, but also a major project to realize international capacity cooperation in China and start-up MCKIP. This project adopts alternating current electric arc furnace and long process technology in China, which has great cost advantages. The Malaysian government has taken it as an important arrangement to eliminate local small-scale steel mills with high energy consumption, high cost and low output, and to accelerate the development of modern steel industry. This project has pioneered the Guangxi Beibu Gulf Port International Groups overseas investment with “mixed ownership”. China Construction Bank, Export-Import Bank and Agricultural Bank formed a project syndicate to provide a financing arrangement of 664 million US dollars and 2 billion RMB for the project.
The launching of this procedure was a great significance as it marked Guangxis first One Belt, One Road” steel project get-off the ground and also a solid step in the construction of “Two Counties, Twin Parks. China Import and Export Credit Insurance has provided professional overseas investment insurance services for the project, and performed efficient and high-quality financial service for more quality enterprises in Guangxi to invest overseas.