Overview

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

Commitments (Constant USD, 2023)$178,947,021

Commitment Year•2014Country of Activity•MongoliaDirect Recipient Country of Incorporation•MongoliaSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 21, 2014

Last repayment: Dec 30, 2021

Geospatial footprint

Map overview

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This project provides a loan to the Development Bank of Mongolia for multiple projects. More detailed locational information can be found at https://www.openstreetmap.org/way/991090019 or https://goo.gl/maps/aT11iLZTwMHEtVzE9?coh=178572&entry=tt.

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

Trade and Development Bank of Mongolia

Guarantors

Government Agencies

Government of Mongolia

Loan desecription

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

Grant element•11.4922%Interest rate (t₀)•6%Interest type•Fixed Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

On August 21, 2014, China Development Bank (CDB) 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 exports to China, Japan, and South Korea, and and/or other projects explicitly approved by CDB. As of June 30, 2018, the loan had achieved a 76.3% disbursement rate ($123.5 million).

Staff comments

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. The proceeds of the loan were used in part to support the 50MW Choibalsan Thermal Power Plant (TPP) Expansion Project (see Record ID#105532).