China Eximbank provides $195 million loan for Phase 1 of the Shine Yarmag Apartment Complex Construction Project

Project narrative

On March 16, 2012, the Development Bank of Mongolia — a state-owned development bank in Mongolia — and China Eximbank signed a $200 million general loan agreement for the Shine Yarmag Apartment Complex Construction Project. Then, in 2015, China Eximbank and the DBM signed a $195 million subsidiary term loan agreement for Phase 1 of the Shine Yarmag Apartment Complex Construction Project. The loan reportedly carries an interest rate of 4.2% and a maturity of 6-12 years. DBM subsequently on-lent the proceeds of the loan from China Eximbank to State Housing Corporation of Mongolia (a state-owned housing enterprise in Mongolia). The proceeds of the loan were to be used by the borrower to partially finance a $283 million commercial contract with CGGC Mongolia LLC, which was signed on October 29, 2010. The purpose of Phase 1 was to construct 20 blocks of apartments for 1,500 households in 8th khoroo of Khan-Uul district (6 km southwest of Ulaanbaatar’s downtown area). The larger Shine Yarmag Apartment Complex Construction Project (all phases) covers a total area of 21.6 hectares with a total construction area of 368,262 square meters. It consists of a fountain, a secondary school with the capacity to accommodate 2,000 children, a kindergarten with the capacity to accommodate 400 children, a vocational training and production center, a medical center, and shopping centers. 39.5% of the total project area consists of green areas, including children's playgrounds and sports fields. 30.6% of the total project area consists of bicycle paths, treadmills, roads and sidewalks. Anagram LLC and CGGC Mongolia LLC — a local subsidiary of China Gezhouba Group Company (CGGC) — are the contractors responsible for implementation. A formal construction commencement ceremony took place on August 26, 2011. However, construction itself did not begin until April 20, 2015. Then, on July 29, 2015, Chen Xiaohua, Vice President of CGGC and Chairman ＆ President of CGGC International, conducted an on-site project inspection. A 4-block building for 120 families with 6 floors, was commissioned during the 4th quarter of 2016. The first phase of the project was scheduled for completion in the fourth quarter of 2017. However, it is unclear if/when this project was completed.