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Overview

CDB provides $212 million loan for production of various types of high-tech aviation equipment (Linked to Record ID#42966)

Commitments (Constant USD, 2023)$424,918,070
Commitment Year•2005Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 1, 2005
First repayment (originally scheduled)
Jul 1, 2006
Last repayment (originally scheduled)
Dec 29, 2008

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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China Development Bank and Vnesheconombank (VEB) signed a $212 million loan. Russia's VEB is headquartered in Moscow, Russia. More detailed locational information can be found at https://www.openstreetmap.org/way/130850432.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Vnesheconombank (VEB Bank or VEB.RF)

Implementing agencies

State-owned Banks

  • Vnesheconombank (VEB Bank or VEB.RF)

Loan description

CDB provides $212 million loan for production of various types of high-tech aviation equipment

Grace period•1 yearsInterest rate (t₀)•4.73375%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3.5 years

Narrative

Full Description

Project narrative

On July 1, 2005, China Development Bank and Vnesheconombank (VEB) — a Russian state-owned bank — signed a $212 million loan agreement for the pre-export activities of Russian companies and the production of various types of high-tech aviation equipment for eventual export to China. The loan carried a 1-year grace period, a 3.5 year maturity, and an interest rate of 6-month LIBOR plus a 1% margin. The loan was scheduled for repayment from June 2006 to March 2009.

Staff comments

1. AidData has estimated the all-in interest rate by adding 1% to average 6-month LIBOR in July 2005 (3.833%). 2. CDB opened an additional, $300 million credit line with VEB in November 2005 for similar purposes (as captured via Record ID#42966).