China Eximbank provides RMB 1.2 billion government concessional loan for Procurement of 6 Oil Vessels Project (Linked to Record ID#55046 and #38342)

Project narrative

On November 14, 2016, China Eximbank and the Government of Bangladesh signed an RMB 1,200,000,000 government concessional loan (GCL) agreement for the Procurement of 6 Oil Vessels Project. The GCL carried the following borrowing terms: a 3% interest rate, a 20-year maturity, a 5-year grace period, and a 0.2% commitment fee (service charge). The borrower was expected to use the proceeds of the loan to finance a $184.5 million commercial contract between Bangladesh Shipping Corporation (BSC) and China National Machinery Import and Export Corporation, which was signed in October 2016. According to the Government of Bangladesh’s Economic Relations Division (ERD), the GCL had achieved a disbursement rate of 58.4% (RMB 701,140,000 out of RMB 1,200,000,000) as of June 30, 2018, 96% (RMB 1,152,910,000 out of RMB 1,200,000,000) as of June 30, 2019, 99.9% (RMB 1,199,990,000 out of RMB 1,200,000,000) as of June 30, 2020, and 99.9% (RMB 1,199,990,000 out of RMB 1,200,000,000) as of June 30, 2021. No repayments on the GCL had been made as of June 30, 2018, June 30, 2019, June 30, 2020 or June 30, 2021. The purpose of the project was for Bangladesh Shipping Corporation (BSC) to purchase 3 bulk oil tankers and 3 oil carriers from the China National Machinery Import and Export Corporation. Each ship was expected to have a load of 39,000 tons. The 3 new bulk oil tankers and 3 oil carriers were to be built by the Yangzijiang Shipbuilding (Holdings) Ltd. for the Bangladesh Shipping Corporation (BSC), and they were expected to be delivered in 2018 to join the BSC's existing fleet of 8 ships. The keel laying for the first vessel was concluded on January 30, 2018. The second vessel — a bulk oil tanker — was launched from the slipway of the New Yangzi shipyard on June 14, 2018. Two additional vessels were launched on July 25, 2018. Another vessel was launched on February 2, 2018. On January 22, 2019, a 39000DWT tanker was successfully delivered to BSC.