China Eximbank provides $174 million buyer’s credit loan for Malabo Electrification Project (Linked to Project ID#484)
Commitment amount
$ 204297499.07909703
Adjusted commitment amount
$ 204297499.08
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Equatorial Guinea
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
Yes
Category
Project lifecycle
Geography
Description
In late 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, 5 year maturity, and 2 year grace period. Then, in June 2012, China Eximbank expanded the buyer’s credit facility agreement (i.e. credit line) by another $174 million to support the Malabo Electrification Project. The loan agreement was signed on June 20, 2012, at the Westin Chaoyang Hotel in Beijing, where the Investment Opportunities Forum of China in Equatorial Guinea was being held. No project implementation details could be identified.
Additional details
1. The Spanish project title is El Proyecto de la electrificación de Malabo. It may also be called the Proyecto de la Electrificacion de la Ciudad de Malabo (Conexión domiciliaria). 2. CMEC was most likely the implementer of this project. 3. This $174 million China Eximbank loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. 4. The Malabo Electrification Project appears to be the sole sub-project of this $174 million credit line extension.
Number of official sources
3
Number of total sources
10
Details
Cofinanced
No
Direct receiving agencies [Type]
Government of Equatorial Guinea [Government Agency]
Implementing agencies [Type]
Government of Equatorial Guinea [Government Agency]
Collateral
The buyer's credit loans under the $2 billion USD facility were secured via deposit accounts opened by Government of Equatorial Guinea in China Eximbank. The Government of Equatorial Guinea deposited the proceeds from hydrocarbon exports into these accounts. A repayment guarantee equivalent to 30 percent (minimum) of the outstanding stock of debt was required to be in the accounts at all times.
Loan Details
Maturity
5 years
Interest rate
5.5%
Grace period
2 years
Grant element (OECD Grant-Equiv)
9.6724%