Project ID: 38056

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

Commitment amount

$ 587061778.9629226

Adjusted commitment amount

$ 587061778.96

Constant 2021 USD

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Venezuela

Sector

Industry, mining, construction (Code: 320)

Flow type

Loan

Level of public liability

Other public sector debt

Infrastructure

No

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2012-02-27

Description

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

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Details

Cofinanced

No

Direct receiving agencies [Type]

Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]

Collateral provider [Type]

Pétroleos de Venezuela S.A. (PDVSA) [State-owned Company]

Collateral

PDVSA income from oil sales

Loan Details

Maturity

6 years

Interest rate

4.69%

Grace period

3 years

Grant element (OECD Grant-Equiv)

4.4999%

Bilateral loan

Investment project loan