Silvercorp Metals Inc. entered into a three‑year syndicated term loan facility on April 20 2026, securing RMB 1.5 billion (about US$220 million). The facility was oversubscribed twice, with total bank commitments reaching RMB 2 billion (≈US$293 million) against an original target of RMB 1 billion, underscoring strong lender confidence. Standard Chartered Bank (Hong Kong) Limited served as the sole mandated lead arranger and bookrunner for the transaction.
The loan will be used for general corporate purposes, working capital, and project financing. Silvercorp plans to deploy the proceeds to advance the El Domo copper‑gold project in Ecuador and the Tulkubash and Kyzyltash gold projects in Kyrgyzstan—key assets in its strategy to shift from a China‑centric silver producer to a diversified mid‑tier metals producer.
Prior to the loan, Silvercorp reported $462.8 million in cash and short‑term investments at the end of Q3 Fiscal 2026 (ending December 31 2025) and $114.9 million in debt as of April 2026. The company’s debt‑to‑equity ratio stood at 0.13–0.16, indicating a low level of leverage that the new facility will preserve while adding financial flexibility.
The El Domo project is on track for first production in July 2027, with a total construction cost of US$284 million and US$45 million spent to date. In Kyrgyzstan, Silvercorp acquired a 70 % interest in the Tulkubash and Kyzyltash projects in January 2026; Phase 1 at Tulkubash requires a US$150 million investment and is expected to produce between 2027 and 2028, while Phase 2 at Kyzyltash will need about US$400 million and is slated for production from 2028 to 2031.
Silvercorp’s MSCI ESG rating was upgraded from A to AA, reflecting its commitment to environmental, social, and governance standards. However, the El Domo project faces significant local and national opposition in Ecuador over environmental and human‑rights concerns, presenting reputational and potential financial risks that the company must manage as it expands.
By securing this debt facility, Silvercorp maintains a low debt‑to‑equity ratio and avoids equity dilution, thereby strengthening its balance sheet and supporting the execution of its global expansion strategy.
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