China Construction Bank contributes $74 million to $370 million syndicated loan for Salvador Geriatrics Hospital Construction Project

On November 30, 2018, Consorcio De Salud Santiago Oriente S.A. Sociedad Concesionaria (CSSO) signed a syndicated loan — with the Chile Branch of China Construction Bank, the Chile Branch of Banco Santander, Bank of America Merrill Lynch, Itau Unibanco, and Banco Consorcio — worth up to UF 9,500,000 ($370 million) for the Salvador Geriatrics Hospital Construction Project. The loan carries a 4.41% interest rate and a maturity of 10.5 years. The loan’s final maturity date on June 15, 2029. The purpose of the project is to facilitate the construction of the Salvador Geriatrics Hospital — also known as the Hospital del Salvador e Instituto Nacional de Geriatría — in Providencia, Chile. The hospital will have 641 beds and serve the surrounding population in the city of Santiago, Chile. The project will be implemented according to a Chilean Public-Private Partnership (PPP) model, in which the Chilean Ministry of Public Works supervises the development of the project; CSSO is responsible for the design, construction and operation of all non-clinical functions of the hospital; and the Servicio de Salud Metropolitano Oriente (Eastern Metropolitan Health Service) continues to deliver all health services. The parcel of land upon which the hospital was to be but was turned over to the concessionaire on July 29, 2016. Preliminary works began on January 9, 2017. The first loan disbursement took place on January 15, 2019. As of December 2018, the construction of the hospital was expected to be finished within 46 months (October 2022). Heavy construction activities commenced on June 21, 2019. As of June 2020, the project had achieved a 12.09% completion rate. As of February 2021, the project had achieved a 20% completion rate. As of December 2021, the project had achieved a 48.85% completion rate. The expected provisional commissioning date of the hospital is May 10, 2023. The expected final commissioning date of the hospital is May 9, 2024.

Additional details

1. Consorcio de Salud Santiago Oriente (CSSO) is a special purpose vehicle and wholly-owned subsidiary of the Mexican company GIA. 2. The precise contributions of the Chile Branch of China Construction Bank to the lending syndicate are unknown. For the time being, AidData (like IJGlobal) assumes equal contributions ($74 million) across the 5 known lenders that contributed to the $370 million loan. 3. One source suggests that other lenders — including Banco Consorcio, Banco Security, Metlife Chile Seguros de Vida S.A. and Compañía de Seguros de Vida Consorcio Nacional de Seguros S.A. — may have participated in the syndicate. This issue warrants further investigation.

Number of official sources

8

Number of total sources

19