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June 3, 2019

Teck signs $2.5bn financing agreement for Quebrada Blanca Phase 2 project

Canadian metals and mining company Teck Resources has signed a $2.5bn recourse project financing agreement to fund the development of the Quebrada Blanca Phase 2 (QB2) project.

Canadian metals and mining company Teck Resources has signed a $2.5bn recourse project financing agreement to fund the development of the Quebrada Blanca Phase 2 (QB2) project.

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The QB2 project, which is one of the world’s largest undeveloped copper resources, will have an initial mine life of 28 years.

Construction of the project was sanctioned by the project partners in last December and first copper production is expected in the second half of 2021.

Compañia Minera Teck Quebrada Blanca S.A. (QBSA) holds the QB2 project and will be the borrower under the financing as part of the agreement.

QBSA is indirectly owned 60% by Teck,  25% by Sumitomo Metal Mining (SMM), 5% by Sumitomo and 10% by Empresa Nacional de Mineria.

The financing for the project will be directly provided by the Japan Bank for International Cooperation, Export Development Canada, the Bank of Exports and Imports of Korea, the German Government for the Program of Guarantees of Unrelated Loans, KFW IPEX-Bank GMBH, the Bank of Montreal and BNP Paribas SA, ING Bank NV, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

Until the completion of project construction, Teck, Sumitomo Metal Mining and Sumitomo will guarantee the obligations of QBSA under 12 year-facility.

Financing is expected to close before the third quarter of 2019 and the first loan is not expected to be required until the end of 2019.

Rothschild & Co Canada has been appointed as the financial adviser to QBSA for the transaction.

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IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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