CDB and China CITIC Bank provide $273.2 million buyer's credit loan for Supply of Locomotives, Cars, Spare Parts, and Tools for Long Distance Trains Project

In 2010, China CITIC Bank Corporation Limited and the China Development Bank signed a $273,252,220 export buyer's credit loan agreement with Argentina’s Ministry of Economy and Public Finance for the Supply of Locomotives, Cars, Spare Parts, and Tools for Long Distance Trains Project. The purpose of the loan was to finance the acquisition of twenty diesel locomotives and 220 long distance wagons, replacement equipment, and tools to Argentina. The loan carried the following terms: a 10-year maturity, a 3.5 year grace period, an interest rate of LIBOR plus a 3.15% margin, a 2% default (penalty) interest rate, a 0.25% commitment fee, and a 0.5% management fee. Sinosure provided export buyer’s credit insurance. China CITIC Bank Corporation Limited and the China Development Bank each contributed $136,626,110 to the syndicated loan. The loan's (principal) amount outstanding was $0 as of December 31, 2011, $0 as of December 31, 2012, $87,293,470 as of December 31, 2013, $234,965,427.36 as of December 31, 2014, $198,816,900.08 as of December 31, 2015, $126,519,845.52 as of December 31, 2017, $90,371,318.24 as of December 31, 2018, $54,222,790.96 as of December 31, 2019, and $18,074,263.68 as of December 31, 2020. The contractors for this project are two subsidiaries of China Northern Railway Corporation Ltd (CNR): Changchun Railway Vehicles Co. Ltd. and Dalian Locomotive & Rolling Stock Co. Ltd. (CNR Group). CNR Corporation is a subsidiary of China Railway construction Corporation (CRRC). According to a Chinese media source, at the end of June 2011, contracts for the acquisition of 20 diesel locomotives and 220 rail passenger cars —between China CNR and the Argentina’ Planning Department — became effective. According to press releases by the implementing companies, the locomotives were shipped from China in March 2013 and they arrived in Argentina in May 2013. On October 25, 2013, the railway trains were officially put into operation.

Additional details

1. The Chinese project title is 中信建设出口布宜诺斯艾利斯市地铁A线车辆项目. The Spanish project title is La adquisición de material rodante para las líneas de subterráneos de la Ciudad Autónoma de Buenos Aires. 2. AidData has estimated the all-in interest rate by adding 3.15% to average 6-month LIBOR in 2010 (0.519%). 3. The Government of Argentina’s Sistema de Análisis y Control de la Deuda (SIGADE) loan identification number is 27643000. 4. The loan agreement can be accessed in its entirety via https://www.documentcloud.org/documents/20484836-arg_2010_473.

Number of official sources

18

Number of total sources

24