Project ID: 39099

CDB provides $5 billion loan via Second Tranche B Rollover Facility of Joint China-Venezuela Fund (Linked to Project ID#35985, #37838, #37528, #38380, #38163, #38316, #37808, #37804, #58377, #95953)

Commitment amount

$ 5611377847.894762

Adjusted commitment amount

$ 5611377847.89

Constant 2021 USD

Summary

Funding agency [Type]

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

Recipient

Venezuela

Sector

Other multisector (Code: 430)

Flow type

Loan

Level of public liability

Other public sector debt

Financial distress

Yes

Infrastructure

Yes

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

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2015-04-01

Actual start

2015-04-20

Description

On November 6, 2007, a six-party framework agreement for the establishment of the Joint China-Venezuela Fund (JCVF) — known in Spanish as the Fondo Común China Venezuela (FCCV) — was signed. The agreement, which is also referred to as the Sino-Venezuelan inter-governmental agreement, was subsequently published in the Venezuelan Official Gazette (No. 39,019) on September 18, 2008. It was designed to govern three agreements: (1) a four-party agreement between China Development Bank (CDB), Banco de Desarrollo Económico y Social de Venezuela (BANDES), China National United Oil Corporation (CHINAOIL), and Petróleos de Venezuela, S.A. (PDVSA); (2) an oil-backed, $4 billion loan (facility) agreement [also known as ‘Tranche A’ under the JCVF or Heavy Fund I (Fondo Pesado I in Spanish)] between BANDES and CDB; and (3) a Petroleum Sales and Purchase Contract between PDVSA and CHINAOIL. Under the third agreement, the Petroleum Sales and Purchase Contract, PDVSA agreed to sell on behalf of the Venezuela Government, based on a pre-agreed pricing formula, 100,000 barrels of fuel and/or crude oil per day to CHINAOIL (a subsidiary of CNPC) until the full repayment of all amounts due in connection with the second agreement, the CDB-BANDES facility agreement. CHINAOIL agreed to make payments to PDVSA due under the Petroleum Sales and Purchase Contract by depositing U.S. dollars in a CDB-controlled bank account (that was opened on behalf of BANDES to facilitate its loan repayments to CDB). The $4 billion, oil-backed CDB loan (facility) carried the following borrowing terms: a 3-year maturity (extendable/renewable for up to 15 years) and an interest rate of LIBOR plus a 2.5% margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $680 million) in the CDB-controlled bank account as a source of cash collateral. According to a Venezuelan Government filling with the U.S. Securities and Exchange Commission (SEC), the ‘Tranche A’ loan achieved a 100% disbursement rate and was fully repaid by the borrower by the final maturity date of November 2010. In total, the borrower made repayments worth approximately $4.1691 billion ($4 billion of principal and $169.1 million of interest). Venezuela’s National Development Fund (FONDEN) was expected to contribute $2 billion to the JCVF alongside the $4 billion Tranche A loan from CDB, bringing total JCVF contributions from the two governments to $6 billion. Then, on February 18, 2009, the JCVF framework agreement was amended to ‘upsize’ the JCVF from $6 billion to $12 billion (with CDB issuing a second $4 billion loan known as ‘Tranche B’ and FONDEN making another $2 billion counterpart contribution). The amended agreement was published in the Venezuelan Official Gazette (no. 39.183) on May 21, 2009. The second, $4 billion facility agreement between BANDES and CDB — also known as Tranche B under the JCVF or Heavy Fund II (Fondo Pesado II in Spanish) — was signed in February 2009. It carried the following borrowing terms: a 3-year maturity (extendable/renewable for up to 15 years) and an interest rate of LIBOR plus a 2.5% margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $680 million) in the CDB-controlled bank account as a source of cash collateral. According to a Venezuelan Government filling with the U.S. Securities and Exchange Commission (SEC), the Tranche B loan achieved a 100% disbursement rate and was fully repaid by the borrower by the final maturity date of February 2012. In total, the borrower made repayments worth approximately $4.1691 billion ($4 billion of principal and $212.9 million of interest). Under a revised version of the Petroleum Sales and Purchase Contract between PDVSA and CHINAOIL, PDVSA agreed to sell on behalf of the Venezuela Government, based on a pre-agreed pricing formula, 107,000-153,000 barrels of fuel and/or crude oil per day to CHINAOIL until the full repayment of all amounts due in connection with the CDB-BANDES facility agreement. The actual volumes of fuel and crude oil sold by PDVSA and delivered to CHINAOIL reportedly fluctuated with the price of oil (from a minimum of 110,000 barrels per day when oil prices were above $60 per barrel to a maximum of 153,000 barrels per day when oil prices were below $42 per barrel). BANDES exercised its right to ‘extend’ (‘renew’) Tranches A and B by signing a series of rollover facility agreements with CDB. The first Tranche A rollover facility agreement (worth $4 billion) was signed by BANDES and CDB in June 2011. It carried the following borrowing terms: a 3-year maturity and an interest rate of LIBOR plus a 2.5 margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $680 million) in the CDB-controlled bank account as a source of cash collateral. According to a Venezuelan Government filling with the U.S. Securities and Exchange Commission (SEC), the first Tranche A rollover facility (also known as the Tranche A-II facility and Tranche A Renewal 1) achieved a 100% disbursement rate and was fully repaid by the borrower by the final maturity date of May 2014. In total, the borrower made repayments worth approximately $4.2582 billion ($4 billion of principal and $258.2 million of interest). The second Tranche A rollover facility agreement (worth $4 billion) was signed by BANDES and CDB in July 2014. It carried the following borrowing terms: a 3-year maturity and an interest rate of LIBOR plus a 2.5 margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $680 million) in the CDB-controlled bank account as a source of cash collateral. According to a Venezuelan Government filling with the U.S. Securities and Exchange Commission (SEC), the second Tranche A rollover facility (also known as the Tranche A-III facility and and Tranche A Renewal 2) fully disbursed in November 2014. By the end of 2016, the borrower made repayments worth approximately $2.6623 billion ($2.3333 billion of principal and $329 million of interest). The loan’s estimated outstanding amount was $1.6667 billion as of the end of 2016. Its estimated outstanding amount was $1.83 billion as of the end of 2018. As a counterpart contribution to the second Tranche A rollover facility, FONDEN provided the equivalent of $2.0 billion in Bolívares. The first Tranche B rollover facility agreement (worth $4 billion) was signed by BANDES and CDB in February 2012. It carried the following borrowing terms: a 3-year maturity and an interest rate of LIBOR plus a 2.5 margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $680 million) in the CDB-controlled bank account as a source of cash collateral. According to a Venezuelan Government filling with the U.S. Securities and Exchange Commission (SEC), the first Tranche B rollover facility (also known as the Tranche B-II facility and Tranche B Renewal 1) achieved a 100% disbursement rate and was fully repaid by the borrower by the final maturity date of February 2015. In total, the borrower made repayments worth approximately $4.2902 billion ($4 billion of principal and $290.2 million of interest). The second Tranche B rollover facility agreement (worth $5 billion) was signed by BANDES and CDB in April 2015. It carried the following borrowing terms: a 3-year maturity and an interest rate of LIBOR plus a 2.5 margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $850 million) in the CDB-controlled bank account as a source of cash collateral. The second Tranche B rollover facility reportedly achieved a 100% disbursement rate. By the end of 2016, the borrower made repayments worth approximately $2.0189 billion ($1.6667 billion of principal and $352.3 million of interest). The loan’s estimated outstanding amount was $3.3333 billion as of the end of 2016. Its estimated outstanding amount was $4.171 billion as of the end of 2018. As a counterpart contribution to the second Tranche B rollover facility (also known as the Tranche B-III facility and Tranche B Renewal 2), FONDEN provided the equivalent of $1.0 billion in Bolívares (6.3 billion Bolívares). Then, in November 2013, CDB and BANDES signed a $5 billion ‘Tranche C’ facility (loan) agreement under the JCVF (also known as Heavy Fund III or Fondo Pesado III in Spanish). It carried the following borrowing terms: a 3-year maturity and an interest rate of LIBOR plus a 2.5 margin. The borrower was responsible for making quarterly principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $850 million) in the CDB-controlled bank account as a source of cash collateral. Tranche C reportedly achieved a 100% disbursement rate. By the end of 2016, the borrower made repayments worth approximately $4.5142 billion ($4.1667 billion of principal and $347.6 million of interest). By the end of 2016, the loan’s estimated amount outstanding was $833.3 million. By the end of 2018, its estimated amount outstanding was $429 million. As a counterpart contribution to the Tranche C facility agreement between CDB and BANDES, FONDEN provided the equivalent of $1 billion in Bolívares. The borrower (BANDES) was expected to use the loan proceeds from Tranches A, B, and C of the JCVF to finance individual projects — mainly in the infrastructure, industry, and energy sectors. The individual projects that are known to have been financed via Tranches A, B, and C include: the Metro de Valencia Project (captured via Project ID#58788), the Metro de Maracaibo Project (captured via Project ID#58791), the Metro de Los Teques and the Metro System of Caracas Project (captured via Project ID#37289), the III Bridge over the Orinoco (Guárico-Bolívar) Project (captured via Project ID#58628), the Continuation of the Gran Mariscal de Ayacucho Highway Project (captured via Project ID#58621), the Barrio Adentro IV Project (captured via Project ID#37292), the Mission Alma Mater Project (captured via Project ID#58795), the Second Stage of the Integral Rehabilitation of the Guárico River Irrigation System Project (captured via Project ID#37517), the Cerro Azul Cement Plant project (captured via Project ID#58801), the installation of a pipe plant in Ciudad Bolívar (captured via Project ID#58804), the Yaguara Montalbán Highway Exit project (captured via Project ID#58724), the Tinaco-Anaco Railway Project (captured via Project ID#37950), the Purchase of Surgical Equipment Project (captured via Project ID#38313), the Renovation and Support of Corpoelec Project (captured via Project ID#37523), Support to 13 Electricity Generation Projects (captured via Project ID#37542), the Purchase of Armored Amphibious Vehicles (captured via Project ID#38151), the Construction of VRSS-2 Satellite (captured via Project ID#38297), the Construction of a Musical Instruments Assembly Plant (captured via Project ID#38379), the Purchase of Equipment for Bauxilum Project (captured via Project ID#38159), the Maracaibo Plain Project (captured via Project ID#69377), the Rehabilitation of ‘El Guapo’ Dam Project, the Construction of 72 ‘Socialist Factories’ Project, the Merida Cable Car Modernization Project (captured via Project ID#69375), the Creation of the Avicola de Alba Socialist Joint Venture (captured via Project ID#69376), the Socialist Agrarian Project in the Maracaibo Plain (captured via Project ID#69377), the TermoZulia II Power Plant Project (captured via Project ID#91431), the Termozulia IV Power Plant Project (captured via Project ID#91492), the Bachaquero and Tamare Power Plants Project (Termozulia V) (captured via Project ID#91486), the La Cabrera (José Felix Ribas) Power Plant Project (captured via Project ID#91324), the TermoCarabobo II Power Plant Project (captured via Project ID#91283), the India Urquia Power Plant Project (captured via Project ID#91468), and the Juan Bautista Arismedi Power Plant Project (captured via Project ID#91475). Many of these projects were plagued by controversy and scandal. For example, according to an April 2019 Bloomberg report, the Tinaco-Anaco Railway Project was ‘left unfinished and in decay, garnering the nickname of red elephant.' In parallel to the JCVF, CDB and BANDES signed a $20.3 billion, oil-backed facility (loan) agreement — also known as the Long Term Facility (Gran Volumen) Agreement or the 2010-2020 Large Volume Long-Term Financing Resource Agreement (LVLTFRA) — on September 16, 2010. The agreement was published in the Venezuelan Official Gazette (No. 39.511). The facility consisted of two tranches: an RMB 70 billion tranche with a 10-year maturity (final maturity date: September 2020), a 6-month grace period, and an interest rate of SHIBOR plus a 4.5% margin; and a $10 billion tranche a 10-year maturity (final maturity date: September 2020), a 6-month grace period, and an interest rate of LIBOR plus a 4.5% margin. The facility was renewable/extendable at maturity. The borrower was responsible for making semi-annual principal and interest payments to the lender. It was also responsible for maintaining a minimum cash balance (worth approximately $3 billion) in the CDB-controlled bank account as a source of cash collateral. According to a loan disbursement schedule released by the borrower (BANDES), the $10 billion loan tranche had a scheduled disbursement of $6 billion on September 17, 2010 and a scheduled disbursement of $4 billion in April 2011, while the RMB 70 billion loan tranche had four scheduled disbursements in September 2010, April 2011, July 2011, and January 2012. The $20.3 billion facility reportedly disbursed in full in 2010 and 2011. By the end of 2016, the borrower made repayments on the $10 billion loan tranche worth approximately $7.3466 billion ($5.5 billion of principal and $1.8466 million of interest) and repayments on the RMB 70 billion loan tranche worth approximately $7.7725 billion ($5.5 billion of principal and $2.2725 million of interest). As of early 2016, the total estimated amount outstanding under the $20.3 billion facility (including the USD-denominated loan tranche and the RMB-denominated loan tranche) was $10.6 billion. By the end of 2016, the total estimated amount outstanding under the $20.3 billion facility was $9.3 billion ($4.8 billion under the USD-denominated loan tranche and $4.5 billion under the RMB-denominated loan tranche). By the end of 2018, the total estimated amount outstanding under the $20.3 billion facility (including the USD-denominated loan tranche and the RMB-denominated loan tranche) was $9.917 billion. The RMB 70 billion loan tranche was part of a pilot test for internationalizing the RMB and raising the profile of the RMB in the oil sector. Under a revised version of the Petroleum Sales and Purchase Contract between PDVSA and CHINAOIL, PDVSA agreed to sell on behalf of the Venezuela Government, based on a pre-agreed pricing formula, 200,000-300,000 barrels of fuel and/or crude oil per day to CHINAOIL until the full repayment of all amounts due in connection with the CDB-BANDES facility agreement. More specifically, PDVSA agreed to sell 200,000 barrels of fuel and/or crude oil per day to CHINAOIL in 2010, 250,000 barrels of fuel and/or crude oil per day to CHINAOIL in 2011, and 300,000 barrels of fuel and/or crude oil per day to CHINAOIL between 2012 and the final maturity date of the CDB loan (September 2020). According to the terms of the LVLTFRA, the borrower was expected to use the proceeds of the loan to (a) pay for goods and services from Chinese suppliers, (b) finance projects deemed eligible by the Chinese-Venezuelan High-Level Joint Commission, and/or (c) support Chinese-Venezuelan joint ventures in Venezuela. One media source suggests that the loan proceeds were ultimately used to finance 19 projects in the power generation sector, agricultural and livestock sector, manufacturing sector, and construction sector (10.02 billion USD). AidData has identified 16 specific projects funded through the LVLTFRA: Five Power Plants (captured as an umbrella via Project #37833); these projects include Planta Centro (Project #91235), El Chorrín hydroelectric plant (Project #91293), El Vigia (Don Luis Zambrano Thermoelectric) (Project #91086), and TermoCarabobo I (El Palito) (Project #91257) and are worth a total of USD 4.34 billion. Other projects include the Dredging of the Rio Orinoco Canal (captured via Project ID#37941); the Alcasa Aluminium Plant (captured via Project ID#37914); the Construction of New Pellet Plant and Production Facility Upgrade at Ferrominera Orinoco (captured via Project ID#37924); and the Tocoma Hydroelectric Power Plant (captured via Project ID#91452). It also provided for nine socialist agriculture projects (captured via Project ID#37829): the Río Guárico Socialist Agriculture Project (captured via Project ID#91524); the Píritu Becerra Socialist Agriculture Project (captured via Project ID#91536); the Eje Biruaca-Achaguas Socialist Agriculture Project (captured via Project ID#91538); the Río Tiznado Socialist Agrarian Development Project Phase II (Project ID#91539) the Delta Amacuro Agriculture Development Project (#91553); the Santo Domingo Irrigation Project (captured via Project ID#91565); the Llano Alto Socialist Agroecological Development Project (captured via Project ID#91569); the Guanarito Agriculture Project (captured via Project ID#91615); and the Alto Apure Socialist Axis Project (captured via Project ID#91618). By 2016, evidence had emerged that BANDES was in arrears and having difficulty servicing its outstanding repayment obligations to CDB. In April 2016, CDB and BANDES signed a debt rescheduling agreement. Under the terms of the agreement, CDB granted a two-year moratorium (or grace period) in which BANDES would only have to pay interest on its outstanding loan repayment obligations (estimated to be $19 billion at the time) and it could defer its principal payments as long as the price per barrel of oil remained under $50. If oil prices rose, BANDES (with support from PDVSA) would have to steadily increase its payments on the principal portions of the loans. China Development Bank also reportedly extended repayment deadlines (i.e. provided maturity extensions) and reduced the minimum oil shipment quantities specified in the Petroleum Sales and Purchase Contracts between PDVSA and CHINAOIL. Then, in August 2020, the Venezuelan Government announced that CDB had granted an additional moratorium (grace period) — of an unspecified length — in which BANDES would only have to pay interest on its outstanding loan repayment obligations (still estimated to be $19 billion). The Venezuelan Government also announced that ‘this (arrangement) will be in place until at least December [2020], and then [CDB will re-evaluate it.’ At the time of the August 2020 announcement, Reuters reported that CHINAOIL had stopped buying oil directly from PDVSA in 2019 as a result of U.S. sanctions meant to force Venezuela President Maduro from power that created penalties for companies that bought Venezuelan oil. Consequently, BANDES was unable to meet its repayment obligations to CDB in 2019 and 2020. The $4 billion Tranche A facility that was issued in November 2007 is captured via Project ID#35985. The first, $4 billion Tranche A rollover facility (also known as the Tranche A-II facility) that was issued in June 2011 is captured via Project ID#37838. The second, $4 billion Tranche A rollover facility (also known as the Tranche A-III facility) that was issued in July 2014 is captured via Project ID#38380. The $4 billion Tranche B facility that was issued in February 2009 is captured via Project ID#37528. The first, $4 billion Tranche B rollover facility (also known as the Tranche B-II facility) that was issued in February 2012 is captured via Project ID#38163. The second, $5 billion Tranche B rollover facility (also known as the Tranche B-III facility) that was issued in April 2015 is captured via Project ID#39099. The $5 billion Tranche C facility that was issued in November 2013 is captured via Project ID#38316. The RMB 70 billion tranche under the LVLTFRA, which was issued in September 2010, is captured via Project ID#37808. The $10 billion tranche under the LVLTFRA, which was issued in September 2010, is captured via Project ID#37804. The April 2016 debt rescheduling agreement is captured via Project ID#58377. The August 2020 debt rescheduling agreement is captured via Project ID#95953.

Additional details

1. In March 2011, China Development Bank (CDB), Banco de Desarrollo Económico y Social de Venezuela (BANDES), China National United Oil Corporation (CHINAOIL), and Petróleos de Venezuela, S.A. (PDVSA) signed a framework agreement and a four-party agreement to govern an oil-backed, $4 billion loan (facility) agreement between BANDES and CDB and a Petroleum Sales and Purchase Contract between PDVSA and CHINAOIL. The proceeds from the sale of fuel and crude oil under the Petroleum Sales and Purchase Contract were to be used by the borrower (BANDES) to meet its repayment obligations under the CDB facility agreement. The framework agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20488898-ven_2011_476_4_of_4. The four-party agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20488897-ven_2011_476_3_of_4. The March 2011 account management agreement between China Development Bank and BANDES can be accessed in its entirety via https://www.documentcloud.org/documents/20488896-ven_2011_476_2_of_4. Under the Petroleum Sales and Purchase Contract, PDVSA agreed to sell on behalf of the Venezuela Government fuel and/or crude oil to CHINAOIL, based on a pre-agreed pricing formula, of 230,000 barrels of fuel and/or crude oil per day from February 19, 2012 until the full repayment of all amounts due in connection with the First (Tranche A) Rollover Facility. CHINAOIL agreed to make payments to PDVSA due under the Petroleum Sales and Purchase Contract by depositing U.S. dollars in a CDB-controlled bank account (that was opened on behalf of BANDES to facilitate its repayments to CDB). The borrower was required to maintain a minimum cash balance in the bank account equivalent to ‘no less than 1.3 times the aggregate amount of principal, interest, and any other amount due and payable under the First Rollover Facility required to be paid on the immediate following repayment date.’ If the minimum cash balance was not maintained, then PDVSA would be responsible for increasing the amount of fuel and/or crude oil to be delivered under the Petroleum Sales and Purchase Contract ‘to ensure that (a) the actual debt service coverage ratio is maintained at the required level at the required times; and (b) the amount in the New Collection Account is sufficient to meet the required balance requirements set out in the facility agreement.’ If PDVSA did not do so, then BANDES was responsible for transferring funds to the CDB-controlled bank account to 'remedy any shortfall'. The lender also had the ability to block the debtor from withdrawing the funds. Under the account management agreement between CDB and BANDES, BANDES is not permitted to make any withdrawals from the Collection Account during the 35-day period prior to any repayment date or if withdrawals would violate the minimum debt service coverage ratio. CDB, on the other hand, is ‘entitled at any time and without notice to BANDES, to […] appropriate, set-off or debit all or parts of the balances in the Collection Account to pay and discharge all or part of BANDES’ liabilities to CDB.’ 2. Some sources suggests that Tranche A, B, and C borrowings under the JCVF carried an interest rate of LIBOR plus a margin that varied between 0.5% and 2.85%. AidData relies upon the interest rate (LIBOR plus a 2.5% margin) that is identified in an August 2019 report published by the Credit and Public Debt Subcommittee of the Permanent Commission on Finance and Economic Development within the National Assembly of Venezuela (see https://asambleanacional-media.s3.amazonaws.com/documentos/documentos/documentos_1566596466.pdf). 3. Some sources suggests that borrowings under the LVLTFRA carried an interest rate of LIBOR plus a margin that varied between 3.5% and 5%. AidData relies upon the interest rate (LIBOR plus a 4.5% margin) that is identified in an August 2019 report published by the Credit and Public Debt Subcommittee of the Permanent Commission on Finance and Economic Development within the National Assembly of Venezuela (see https://asambleanacional-media.s3.amazonaws.com/documentos/documentos/documentos_1566596466.pdf). 4. Information on disbursements and amounts outstanding in drawn from a variety of sources (see https://asambleanacional-media.s3.amazonaws.com/documentos/documentos/documentos_1566596466.pdf and https://asambleanacional-media.s3.amazonaws.com/documentos/documentos/documentos_1566596466.pdf and https://www.sec.gov/Archives/edgar/data/103198/000119312517376486/d505622dex99d.htm and https://dusselpeters.com/CECHIMEX/20191001_CECHIMEX_REDALC_Chinas_financing_in_Latin_America_and_the_Caribbean_Enrique_Dussel_Peters.pdf). 5. AidData has estimated the all-in interest rate (7.332%) that applied to the initial $4 billion Tranche A facility by adding 2.5% to average 6-month LIBOR in November 2007 (4.832%). AidData has estimated the all-in interest rate (3.007%) that applied to the first, $4 billion Tranche A rollover facility (also known as the Tranche A-II facility) by adding 2.5% to average 6-month LIBOR in June 2011 (0.507%). AidData has estimated the all-in interest rate (2.828%) that applied to the second, $4 billion Tranche A rollover facility (also known as the Tranche A-III facility) by adding 2.5% to average 6-month LIBOR in July 2014 (0.328%). AidData has estimated the all-in interest rate (4.257%) that applied to the initial $4 billion Tranche B facility by adding 2.5% to average 6-month LIBOR in February 2009 (1.757%). AidData has estimated the all-in interest rate (3.257%) that applied to the first, $4 billion Tranche B rollover facility (also known as the Tranche B-II facility) by adding 2.5% to average 6-month LIBOR in February 2012 (0.757%). AidData has estimated the all-in interest rate (2.905%) that applied to the second, $5 billion Tranche B rollover facility (also known as the Tranche B-III facility) by adding 2.5% to average 6-month LIBOR in April 2015 (0.405%). AidData has estimated the all-in interest rate (2.851%) that applied to the $5 billion Tranche C facility by adding 2.5% to average 6-month LIBOR in November 2013 (0.351%). AidData has estimated the all-in interest rate (7.0687%) that applied to the RMB 70 billion tranche under the LVLTFRA by adding 4.5% to average SHIBOR in September 2010 (2.5687%). AidData has estimated the all-in interest rate (4.978%) that applied to the $10 billion tranche under the LVLTFRA by adding 4.5% to average 6-month LIBOR in September 2010 (0.478%). 6. It is not clear which specific projects were financed by which specific tranches under the JCVF. Also, many of the financial commitment amounts for these projects are unknown. Consequently, AidData has captured CDB’s financial commitments for Tranches A, B, and C via Project ID#35985, Project ID#37838, Project ID#38380, Project ID#37528, Project ID#38163, Project ID#39099, and Project ID#38316. AidData has also created separate records for each of the projects financed through the JCVF, but not recorded their commitment (transaction) amounts to ensure that commitment amounts are not double-counted. 7. It is not clear which specific projects were financed by which specific tranches under the RMB-denominated tranche and the USD-denominated tranche of the LVLTFRA. Also, many of the financial commitment amounts for these projects are unknown. Consequently, AidData has captured CDB’s financial commitments for RMB-denominated tranche and the USD-denominated tranche of the LVLTFRA via Project ID#37808 and Project ID#37804. AidData has also created separate records for each of the projects financed through the LVLTFRA, but not recorded their commitment (transaction) amounts to ensure that commitment amounts are not double-counted. 8. The estimates of the amounts of cash collateral pledged by the borrower to the lender under various facility agreements are based on an assumption of ‘two [principal] installments plus interest’ (see pg. 350 of https://dusselpeters.com/CECHIMEX/20191001_CECHIMEX_REDALC_Chinas_financing_in_Latin_America_and_the_Caribbean_Enrique_Dussel_Peters.pdf).

Number of official sources

11

Number of total sources

46

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Banco de Desarrollo Económico y Social de Venezuela (BANDES) [State-owned Bank]

Implementing agencies [Type]

Government of Venezuela [Government Agency]

China-Venezuela Joint Fund [State-owned Fund]

Collateral provider [Type]

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

Collateral

PDVSA income from daily oil sales to China National United Oil Corporation (ChinaOil)

Loan Details

Maturity

3 years

Interest rate

2.905%

Grant element (OECD Grant-Equiv)

4.1781%

Bilateral loan

Inter-bank loan

Investment project loan

Refinancing