China Eximbank provides buyer’s credit loan for 7th Khoroolol Housing Construction Project

In August 2014, China Eximbank and the State Housing Corporation of Mongolia — a state-owned housing enterprise in Mongolia — signed a financing agreement for the 7th Khoroolol Housing Construction Project. The agreement specified the following borrowing terms: a 2% interest rate, 15 year maturity, and 3- year grace period. Then, in June 2015, the Cabinet of the Government of Mongolia provided its approval for the Development Bank of Mongolia (DBM) — a state-owned development bank in Mongolia — to on-lend the proceeds of the loan from China Eximbank to State Housing Corporation of Mongolia. Then, in July 2016, China Eximbank and the DBM signed a buyer’s credit loan agreement for the 7th Khoroolol Housing Construction Project. The proceeds of the loan were to be used by the borrower to finance 85% of the cost of a $221,447,500 commercial contract between Beijing Uni.-Construction Group Co., Ltd. (BUCC) and the State Housing Corporation of Mongolia, which was signed in 2014 (and possibly revised on January 7, 2015). The precise face value of the China Eximbank buyer’s credit is unknown. However, the borrower was authorized to use the proceeds of the buyer’s credit to finance up to 85% of the commercial contract with Beijing Uni.-Construction Group Co., Ltd. (BUCC). Therefore, AidData assumes that the face value of the buyer’s credit was equivalent to 85% of $221,447,500 ($188,230,375). The purpose of the project is to construct a housing complex (‘Complex G’) — that can accommodate 4460 households — in the 7th Khoroo within Ulaanbaatar’s Sukhbaatar District. BUCC is the contractor responsible for implementation. AidData has not identified any evidence that this project has entered implementation.

Additional details

1. This project is also known as the Construction of Residential Area in 7th Khoroolol, Sukhbaatar District, Ulaanbaatar Project, the Housing Complex G of the 7th Khoroolol Construction Project, and the Ger Area Redevelopment at the 7th Khoroo Housing Complex G Project. The Mongolian project title is Улаанбаатар хотын Сүхбаатар дүүргийн 7 дугаар хорооллын Г хэсэг орон сууцны хорооллын төслийг хэрэгжүүлэх or хооронд Улаанбаатар хотын 7 дугаар хорооллын “G” хэсгийн. The Chinese project title is 乌兰巴托市苏赫巴托区第七小区G部分项目 or 低造价保障性住房项目 or 乌兰巴托第七小区G部分住宅项目. 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. 3. The precise face value of the China Eximbank buyer’s credit is unknown. However, the borrower was authorized to use the proceeds of the buyer’s credit to finance up to 85% of the commercial contract with Beijing Uni.-Construction Group Co., Ltd. (BUCC). Therefore, AidData assumes that the face value of the buyer’s credit was equivalent to 85% of $221,447,500 ($188,230,375). 4. Some media sources suggest that this loan was provided in two tranches, with the first tranche carrying a 2% interest rate, 15 year maturity, and 3 year grace period and the second tranche carrying a 4.1% interest rate, 5 year maturity, and 3 year grace period. This issue merits further investigation.

Number of official sources

7

Number of total sources

15