China National Building Materials provides $400 million loan to Association of Ghana Industries for One District, One Factory (1D1F) Project
Commitment amount
$ 460935262.8083895
Adjusted commitment amount
$ 460935262.81
Constant 2021 USD
Summary
Funding agency [Type]
China National Building Material Company (CNBM) [State-owned Company]
Recipient
Ghana
Sector
Business and other services (Code: 250)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
Yes
Category
Project lifecycle
Description
In 2017, China National Building Material Co., Ltd. (CNBM), a subsidiary of China National Building Material Group (a Chinese state-owned enterprise), signed a $400 million loan facility agreement with the Association of Ghana Industries (AGI) for the One District, One Factory (1D1F) Project. The 1D1F Project is a key component of the Ten Point Industrial Transformational Agenda of the Government of Ghana. It is designed to support the establishment of at least one industrial enterprise in each of country’s 260 districts. The program is private sector-led but facilitated by Government of Ghana. The CNBM loan facility carries a 7.5% interest rate and each individual factory micro-loan carries a maturity of 8-25 years and a grace period of 2-3 years. It provides financing support for up to 85% of total capital expenditures required for the setup of factory (industrial enterprise). The businesses that are supported by the CNBM facility come from the following sectors: general manufacturing, agriculture, ICT, textiles, renewable energy, waste management, pharmaceuticals, and tourism. As of 2020, 181 projects were at various stages of implementation under the 1D1F initiative across 112 districts in the country.
Number of official sources
6
Number of total sources
8
Details
Cofinanced
No
Direct receiving agencies [Type]
Association of Ghana Industries [Private Sector]
Loan Details
Maturity
25 years
Interest rate
7.5%
Grace period
3 years
Grant element (OECD Grant-Equiv)
15.8309%