China Eximbank provides $84.9 million buyer’s credit loan for Electric Train Locomotive (12 Units) Acquisition Project (Linked to Record ID#42199)

Project narrative

On October 11, 2010, China Eximbank and the Belarusbank — a state-owned bank in Belarus — signed a $84,986,626.95 buyer’s credit loan agreement for the Electric Train Locomotive (12 Units) Acquisition Project. The loan was funded through a long-term, $5.7 billion credit line (loan framework agreement) from China Eximbank (captured via Record ID#42199). All subsidiary loans approved under this credit line carried the following terms: 10-15 year maturities, 3-5 year grace periods, and interest rates of 6-month LIBOR + 3% to 4.5% margin. However, the precise borrowing terms of the buyer’s credit loan that supported the Electric Train Locomotive (12 Units) Acquisition Project are unknown. The Government of Belarus issued a sovereign guarantee in support of the loan. Belarusbank on-lent the proceeds of the loan to Belarusian Railway (a state-owned railway company). Belarusian Railway then used the loan proceeds to finance 85% of the cost ($99.792 million) of a commercial contract [№ 10CUEC6B008/T/Ю-676] that it signed with CNR Datong Electric Locomotive Co., Ltd on March 25, 2010. The purpose of this project was to facilitate the acquisition of 12 electric trains locomotives. CNR Datong Electric Locomotive Co., Ltd was the EPC contractor responsible for implementation. The first 2 electric locomotives arrived in Belarus on May 15, 2012. The second batch of 4 locomotives arrived in Belarus on November 26, 2012. The last of the locomotives arrived on June 4, 2013.