China Eximbank pledges financing for Manuel Belgrano II Thermoelectric Power Plant Project

On February 4th, 2015, the China EXIM bank signed an MoU with the Argentinian government for the financing of the Central Termoeléctrica Manuel Belgrano II Project. The thermoelectric power plant will consist of two gas turbines and one steam turbine. The power plant was planned to be a joint venture between China National Technical Import and Export Corporation and Electroingenieria S.A., where China National Import and Export Technical Corporation (CNTIC) is expected to provide the equipment. The loan will cover 85% of the commercial contract, and Inversiones Chinas En América Latina reported that the loan was worth 1 billion USD. The loan's interest rate was set for 6 months LIBOR + 380 base points, with 13-year maturity. The 6 Month LIBOR as of February 2015, which is the MOU sign date, is 0.376% The interest rate = 0.376% + 3.80% = 4.176%. The loan is guaranteed through the income generated through electricity sales once the plant opens. The loan carried additional terms of a 0.3% commitment fee, and 0.5% one-time upfront (management) fee, and a loan guarantee provided from the income generated through the electricity sales under the project. In 2017, a resolution was drafted in Argentine's Chamber of Deputies for the National Executive Branch to start the project. In January 2019, Electroingenieria S.A. said that China Eximbank had approved the loan and its terms, but the Argentine Government had not formally approved the loan. Project marked as pledge for now.

Additional details

The MOU can be accessed in its entirety via https://www.dropbox.com/s/l9hnqq9bzwxb61w/2015%20China%20Eximbank%20Loan%20for%20Central%20Termoelectica%20Manuel%20Belgrano%20Project%20in%20Argentina.pdf?dl=0

Number of official sources

9

Number of total sources

10