CDB provides $120 million loan (first tranche) to Ecuadorian Development Bank for on-lending purposes (Linked to Project ID#58862 and ID#91971)

On October 20, 2017, the Banco de Desarrollo del Ecuador B.P. (BDE or Ecuadorian Development Bank) entered into an 8 year, $200 million loan facility agreement with China Development Bank (captured via Project ID#58862). The first tranche (portion) of $120 million was earmarked for on-lending by DBE to eligible Ecuadorian state-owned enterprises and government agencies for purposes of financing projects in Ecuador that are approved by China Development Bank. DBE was expected to on-lend the proceeds of the first tranche (Tranche A) to borrowers at a 7.11% to 9.25% interest rate, based on borrower's credit risk rating, as well as the credit repayment term. As of early 2019, $64 million of the first tranche have been disbursed. The deadline for the execution of first tranche was until April 20, 2020, and it was fully disbursed by February 2020. 234 subsidiary loans were ultimately issued through the first tranche. Project ID#62782 captures the total amount ($120 million) that was disbursed (drawn down by the borrower) through the first tranche. The second tranche (worth $80 million) was earmarked for on-lending by DBE to eligible Ecuadorian state-owned enterprises and government agencies for purposes of financing payments to be made to suppliers in connection with telecommunications, road construction, transportation and equipment, sewage, potable water, and sanitation projects. As of early 2019, none of these funds had been disbursed and the deadline for the execution of second tranche was until March 31, 2021. However, by the end of 2020, 14 subsidiary loans worth $1.63 million had disbursed through the second tranche (a 2.29% execution rate). Subsidiary loans worth $71.08 million had been approved (officially committed) through the second tranche by the end of 2020. Project ID#91971 captures the total amount ($71.08 million) that was officially committed through the second tranche as of 2020. The loan’s (principal) amount outstanding (across both tranches) was $142,667,509.93 as of December 31, 2021 and $107,009,632.45 as of November 30, 2022.

Additional details

1. One source suggests that the loan agreement between DBE and China Development Bank was signed on September 8, 2018 rather than October 20, 2017. This issue warrants further investigation. 2. For the time being, AidData has coded the interest rate for the first tranche as the midpoint (8.18%) between 7.11% and 9.25%. 3. The Ecuadorian Ministry of Finance loan identification number for the $200 million CDB loan is 23194000.

Number of official sources

18

Number of total sources

20