CDB provides $500 million loan to PDVSA for purchasing oil drilling equipment (Linked to Project ID#38053, #38055)

On February 27, 2012, PDVSA entered into a $500 million loan agreement with China Development Bank (CDB) for the purchase of petroleum related goods and services from the People’s Republic of China. This loan carried the following borrowing terms: an interest rate of 6-month LIBOR (0.141% in February 2012) plus a 4.55% margin, quarterly amortization payments, a maturity length of 6 years (72 months) and a 30-month grace period (during which time no interest accrues or interest payments become due). Payments under this facility could be made with the proceeds from the sale of crude oil and related products at market prices. As of December 31, 2016, this loan had achieved a 99% disbursement rate (with $495 million being drawn by PDVSA) and its outstanding amount was $177 million. As of December 31, 2015, the loan’s outstanding amount was $318 million.

Additional details

1. In order to accelerate oil production in Venezuela, China Development Bank agreed to provide $4 billion in loans to PDVSA (as captured via Project ID#38053) in 2011. This new loan would have a maturity date of 8 years at a rate of LIBOR + 5 percent. Additionally, two smaller credit lines of $1.5 billion (captured via Project ID#38055) and $500 million were provided for refinery operations and the purchase of oilfield equipment, respectively.

Number of official sources

6

Number of total sources

12