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

Project narrative

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 Record 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 Record 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.