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Overview

China Eximbank provides RMB 70 million export seller's credit for Power Equipment Supply Project

Commitments (Constant USD, 2023)$19,641,608
Commitment Year•2001Country of Activity•IranDirect Recipient Country of Incorporation•China (People's Republic of)Sector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2001
First repayment (originally scheduled)
Jan 1, 2002
Last repayment (originally scheduled)
Dec 30, 2009

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Implementing agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Eximbank provides RMB 70 million export seller's credit for Power Equipment Supply Project

Grace period•1 yearsGrant element•8.8555%Interest rate (t₀)•7.3739%Interest type•Fixed Interest RateMaturity•9 years

Narrative

Full Description

Project narrative

"In 2001, China Eximbank issued an RMB 70 million export seller's credit to China Machinery Engineering Corporation (CMEC), which apparently on-lent the loan proceeds to the Government of Iran for a Power Equipment Supply Project. The borrowing terms of the loan included a 9-year maturity (final maturity: December 2009), a 1-year grace period, and an unknown interest rate. The borrower was expected to repay the lender in annual installments between 2002 and 2009. The loan was backed by an export credit insurance policy (ID#2000SP150 ) from Sinosure. The purpose of the project was to acquire and install air conditioniting units for multiple power plants in Iran.

Staff comments

1. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 7.3739% in 2000. AidData estimates the interest rate of the China Eximbank loan by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0