Project ID: 18

China Eximbank provides RMB 73.5 million governmental concessional loan for Textile Factory Project (Linked to Project ID#73357, #73365, and #73366)

Commitment amount

$ 22786102.553217746

Adjusted commitment amount

$ 22786102.55

Constant 2021 USD

Summary

Funding agency [Type]

Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]

Recipient

Benin

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Level of public liability

Other public sector debt

Financial distress

Yes

Infrastructure

Yes

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2000-01-13

Planned start

2000-03-20

Actual start

2000-02-01

Actual complete

2002-10-30

Geography

Description

On June 18, 1998, the Chinese Government and the Government of Benin signed an RMB 150 million preferential loan framework agreement for the Textile Factory Project. Under the terms of this agreement, a Chinese state-owned company, China Textile Industry Foreign Economic and Technical Cooperation Company (CTEXIC), and a Beninese state-owned company, Société des Industries Textiles du Bénin (SITEX), agreed to create a joint venture called Compagnie Béninoise de Textile (CBT). Rather than issuing a single RMB 150 million loan to CBT, the Export-Import Bank of China issued one loan to the Government of Benin (on behalf of SITEX) and another loan to CTEXIC. The face values of these loans, which sum to RMB 150 million, were issued in proportion to the SITEX ownership stake (49%) and CTEXIC ownership stake (51%) in CBT. On January 13, 2000, China Eximbank and La Caisse Autonome d'Amortissement du Bénin (a public sector institution supervised by Benin’s Ministry of the Economy and Finance) signed an RMB 73.5 million government concessional loan (GCL) agreement [China Eximbank GCL NO. (2000) 1 (57)] for the Textile Factory Project. This loan carried the following borrowing terms: a 15-year maturity, a 5-year grace period, an interest rate of 3%, a default (penalty) interest rate, a 0.3% commitment fee, and a 0.25% management fee. The borrower agreed to deposit project-related revenues in a special account to facilitate repayment. Project ID#18 captures the loan that was issued to La Caisse Autonome d'Amortissement du Bénin. In March 2000, China Eximbank and CTEXIC signed an RMB 76.5 million loan agreement for the Textile Factory Project. The borrowing terms of this loan are unknown. Project ID#73357 captures the loan that was issued to CTEXIC. The company was formally registered and established in Cotonou in February 2000. This project supported the construction, operation and management of a textile factory in the city of Lokassa called Compagnie Béninoise de Textile (CBT). The main factory building was designed with 24,000 cotton spindles and 768 weaving looms. It was built to achieve a production capacity of 13.7 million meters of unbleached cotton fabric and 923 tons of pure cotton yarn. The factory was put into production on October 31, 2002. CBT subsequently encountered financial problems and China Eximbank had to reschedule its loans with La Caisse Autonome d'Amortissement du Bénin and CTEXIC. China Eximbank reportedly rescheduled its loan to La Caisse Autonome d'Amortissement du Bénin in 2004 and its loan to CTEXIC on August 23, 2011 The terms of the 2004 rescheduling are unknown; however, it is known that the 2011 rescheduling resulted in a reduction of the loan’s interest rate to 1%. The 2004 loan restructuring is captured via Project ID#73365, and the 2011 restructuring is captured via Project ID#73366. As of 2018, SITEX had gone bankrupt and was looking to restructure, but the CBT factory was in production with 1200 employees (5 of whom were Chinese and 1,995 of whom were Beninese).

Additional details

1. The Chinese project title is 中贝合资贝宁纺织公司控股项目 or 洛科萨纺织厂. The French project title is Financement Partiel de la Création de la Compagnie Béninoise des Textiles/CBT. 2. Neither the RMB 73.5 million loan that China Eximbank issued to La Caisse Autonome d'Amortissement du Bénin nor the RMB 76.5 million loan that China Eximbank issued to CTEXIC are included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 3. The loan agreement that China Eximbank issued to La Caisse Autonome d'Amortissement du Bénin can be accessed in its entirety via https://www.documentcloud.org/documents/20484909-ben_2000_524.

Number of official sources

20

Number of total sources

31

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

La Caisse Autonome d'Amortissement du Bénin [State-owned Company]

Compagnie Béninoise de Textile (CBT) [Joint Venture/Special Purpose Vehicle]

Implementing agencies [Type]

China Textile Industrial Corporation for Foreign Economic & Technical Cooperation (CTEXIC) [State-owned Company]

Collateral

Special account into which the borrower was required to deposit project-related revenues

Loan Details

Maturity

15 years

Interest rate

3.0%

Grace period

5 years

Grant element (OECD Grant-Equiv)

37.1244%

Bilateral loan

Government Concessional Loan

Investment project loan