CDB provides $162 million (MNT 316 million) loan to Development Bank of Mongolia for multiple projects

On August 21, 2014, the China Development Bank and the Development Bank of Mongolia (DBM) — a state-owned bank in Mongolia — signed a loan agreement worth $162 million (or MNT 316,418.8 million). The loan carried the following terms: 8 year maturity and 6% interest rate. The Government of Mongolia issued a sovereign guarantee in support of the loan. The proceeds of the loan were to be used for the construction of a highway, electricity projects, urban infrastructure projects, a project called Steppe Road, railway and energy sector projects to increase mineral experts to China, Japan, and South Korea, and and/or other projects explicitly approved by China Development Bank. As of June 30, 2018, 304,062.2 million MNT ($123.5 million) of the loan had disbursed. However, it is unclear which specific projects were financed. This issue requires further investigation.

Additional details

1. The CDB loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 2. AidData has set the umbrella field to 'False'j since no specific subsidiary projects were identified but the borrower made significant drawdowns under the loan agreement.

Number of official sources

6

Number of total sources

11