China Eximbank provides EUR 149.1 million loan for Construction of Bypass around Novi-Sad with the Bridge over the Danube River Project

Project narrative

On October 10, 2023, the Government of Serbia’s Ministry of Finance and China Eximbank signed an EUR 149,175,000 buyer’s credit loan agreement (ID#BLA20230090068) for the Construction of Bypass around Novi-Sad with the Bridge over the Danube River Project. The loan carries the following borrowing terms: a 15-year maturity, a 5-year grace period, an interest rate of 6-month EURIBOR plus a 1.9% margin, a fixed 2% default (penalty) interest rate, a 0.5% management fee (EUR 745,875), a 0.5% commitment fee, and an EUR 6,970,403.77 Sinosure credit insurance premium. The borrower is expected to make semi-annual repayment on May 15 and November 15 of each year after the expiration of the grace period. The borrower is also expected to use the proceeds of the loan to finance 85% of the cost of an EUR 175,500,000 commercial contract (ID#401-00-467/2022-01) between the Government of Serbia and CRBC, which was signed on March 19, 2022. The purpose of the project is to construct a bypass around the city of Novi Sad and construct a bridge over the Danube River on the alignment of state road IIA level N0.111. CRBC is the EPC contractor responsible for project implementation.