China Eximbank reschedules outstanding debts of Government of Chad through maturity extensions (Linked to Project ID#397, #398, #72356)

In 2007, China Eximbank and Sociètè Nationale de Ciment (SONACIM Tchad) — a state-owned company in Chad — signed an RMB 700 million loan for the Baoré Cement Factory Project. This loan carried the following terms: an interest rate of 1.5% and a 5-year grace period (recorded in Project ID#397). In the same year, China Eximbank and the Government of Chad signed a $25.06 million loan for the CDMA 2000 (Fixed Wireless Telephony) Project. This loan carried the following terms: an interest rate of 1.5% and a 5-year grace period (recorded in Project ID#398). Then, in May 2011, China Eximbank and Société de Raffinage de N'Djaména (SRN) SA — a Sino-Chadian joint venture — signed a $330 million preferential buyer’s credit (PBC) for the Rônier Oil Refinery And Pipeline Project (or N'Djamena Refinery and Pipeline Project). The PBC reportedly carried the following terms: a 15-year maturity, a 5-year grace period, and an interest rate of 3.414% interest rate (6-month LIBOR plus 300 basis points) (captured via Project ID#72356). After a sharp decline in oil prices in 2014-2015, Chad experienced an economic recession and a debt crisis and its government sought to renegotiate the borrowing terms of these three loans with China Eximbank. A rescheduling deal was finalized in April 2017: China Eximbank agreed to the lengthen the maturities of these three loans and reschedule arrears that had accumulated (as captured via Project ID#55744). It appears that China Eximbank did not require the accumulated arrears to be repaid before rescheduling the maturities of the loans.

Additional details

1. The lengths of the maturity extensions are unknown. This issue warrants further investigation.

Number of official sources

3

Number of total sources

7