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Overview

ICBC provides $893,508 in import financing loans to Edenor

Commitments (Constant USD, 2023)$893,508
Commitment Year•2023Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2023
Start (actual)
Jan 1, 2023
End (actual)
Dec 31, 2023
Last repayment (originally scheduled)
Oct 1, 2023

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% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Empresa Distribuidora y Comercializadora Norte S.A (Edenor)

Loan description

ICBC provides $893,508 in import financing loans to Edenor

Grant element•0%Interest rate (t₀)•14%Interest type•Fixed Interest RateMaturity•0.75 years

Narrative

Full Description

Project narrative

In the first quarter of 2023, Empresa Distribuidora y Comercializadora Norte S.A (Edenor) borrowed multiple import financing loans from the Industrial and Commercial Bank of China (ICBC) totaling at least $893,508. These borrowings carried maturities of, at most, 1 year and an interest rate of 14%. The amount outstanding under these loans at both June 30, 2023 and September 30, 2023 was $449,896. Then, in the fourth quarter of 2023, Edenor borrowed multiple import financing loans from ICBC worth CNY 2,489,696 in total. These borrowings carried maturities of no more than 1 year and an interest rate of 15.5%.

Staff comments

1. Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest Argentine distributor of electricity. It is headquartered in Buenos Aires. Edenor was incorporated in 1992 as a result of the privatization of state-owned Servicios Eléctricos del Gran Buenos Aires. 2. Edenor's March 2023 interim financial statements are the first to show $893,508 in obligations under import financing loans taken out with ICBC, and while $449,896 in import financing loans appear in June and September 2023 statements, no USD-denominated obligations (nor borrowings with a 14% interest rate) to ICBC appear as of December 31, 2023. Similarly, there were no USD-denominated obligations to ICBC outstanding at December 12, 2022. Thus, it is known Edenor contracted this debt between January 1, 2023, and March 31, 2023 and that it was fully paid off between October 1, 2023, and December 31, 2023. As such, AidData has chosen to code 9 months (0.75 years) as the maturity -- the midpoint between the longest possible maturity (12 months/1 year) and the shortest (6 months/0.5 years).