Case Studies

Voskhod Chromite Project / Oriel Resources

Structure and arrangement of project financing for the Voskhod Chromite mine in Kazakhstan.

US$120m

Transaction Amount

Voskhod was the first project financing in Kazakhstan without PRI, the first ever chromite mine project financing and the first ever project finance using Eurasia Development Bank as a lender. We also advised on the acquisition of IPH Polychrom Holdings, a company building a ferrochrome smelter in Russia.

  • Junior sponsorship
  • Country perception
  • Market/offtake risk on chromite lump and fines products
  • Underground mining
  • Financing plan designed to address lender concerns as to sponsor size and creditworthiness – Contingency; cost overrun facilities; equity in first
  • Project implementation plan designed to address lender concerns – Strong management team and contractors selected; penalties and incentives incorporated into key contracts
  • Long term offtake contracts agreed with ferrochrome smelters and marketing study provided comfort on market risk
  • Provision of consultant experts to “hand-hold” the lenders: technical,
    social/environmental, legal, insurance,
  • Use of EDB as a Lender provided soft comfort to Lenders on country concerns

Key Contact

Paul Mainwaring

Associate Director