China’s export credit insurer has
wrapped 95% of the economic and political risk in its first
financing of a mining project in Russia.
Sinosure offered its maximum coverage to Hong
Kong-listed IRC’s $400 million iron ore project in
the Jewish Autonomous Region (EAO region) in
Russia’s far east. Its full support was crucial in
securing the first Chinese-backed project in the resource rich
Historically Sinosure covers up to 50% of
commercial risk in limited or non-recourse financings. But
it’s now more flexible with this risk and a
guarantee from IRC’s majority shareholder
Petropavlovsk allowed for nearly full coverage.
Sinosure maintained its recent preference of
keeping separate counsel to the banks. But it benefited from
input by lender ICBC and its counsel Allen & Overy on
Russian mining regulations and its impact on loan terms and the
The deal’s lawyers made two points which...