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Overview

China Eximbank provides RMB 150 million loan to Electricidade de Moçambique, E.P.

Commitments (Constant USD, 2023)$24,966,775
Commitment Year•2014Country of Activity•MozambiqueDirect Recipient Country of Incorporation•MozambiqueSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Mozambique

Implementing agencies

State-owned companies

  • Electricidade de Mocambique (EDM)

Loan description

China Eximbank provides RMB 150 million loan to Electricidade de Moçambique, E.P.

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2014, China Eximbank issued an RMB 150 million to Electricidade de Moçambique, E.P., a state-owned enterprise in Mozambique that is responsible for electricity generation and distribution. It is not clear whether, when, or how the proceeds from this loan were used. However, there are some indications that the China Eximbank loan may have financially underperformed vis-a-vis the original expectations of the lender. In 2016, several credit rating agencies downgraded the Government of Mozambique to 'selective default' or 'restricted default' status, and the World Bank and the IMF re-classified Mozambique's external debt as 'in distress.' In January 2017, the Government of Mozambique defaulted on a coupon payment for its dollar-denominated Eurobond. Then, in February 2018, the International Monetary Fund (IMF) announced that the Government of Mozambique had accumulated $710 million in arrears to external creditors and had agreed to reschedule some bilateral debt service payments with the Chinese Government. Two months later, in April 2018, Stelia Neta, a National Director at the Ministry of Finance of Mozambique revealed that the Government of Mozambique’s outstanding debt obligations to the Chinese Government amounted to $2.02 billion and the Chinese Government had agreed to extend the grace periods (and first principal repayments) on these outstanding debt obligations without changing their final maturity dates or interest rates (as captured via Record ID#66283).