China Eximbank provides $12.1 million preferential buyer’s credit for Phase 2 of Agricultural Machinery Equipment Acquisition Project (Linked to Project ID#40435, #73192, #67123)

In August 2014, China Eximbank and the Government of Mongolia signed a $12.1 million preferential buyer’s credit (PBC) agreement for Phase 2 of the Agricultural Machinery Equipment Acquisition Project. The PBC was approved under a $500 million line of credit for various projects that was signed by the two governments on June 16, 2011 (captured in Project ID#40435). The borrowing terms of the PBC were as follows: 20 year maturity, 7 year grace period, and 2% interest rate. The proceeds of the PBC were to be used by the borrower to partially finance a purchase contract with Lovol Heavy Industry Co., Ltd. The purpose of the project was to facilitate the acquisition of wheat-harvesting equipment. China Eximbank also financed Phases 1 and 3 of the Agricultural Machinery Equipment Acquisition Project (captured in Project ID#73192 and ID#67123). On May 24, 2015, a delivery ceremony for 150 high-horsepower tractors, 60 combine harvesters, and 100 additional pieces of agricultural machinery was held.

Additional details

1. This project is also known as the Purchasing Large Tractors Project. The Chinese project title is 款农机设备采购项目 or 款采购大型农业机械项目（二期). The Mongolian project title is “Бага оврын хөдөө аж ахуйн трактор худалдан авах II” төсөл. 2. The China Eximbank 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.

Number of official sources

5

Number of total sources

9