Overview

China Eximbank provides 5-year grace period extension on RMB 291 million loan for Phase 3 of the National Road Improvement Project (Linked to Record ID#39199)

Commitment Year•2013Country of Activity•TongaDirect Recipient Country of Incorporation•TongaSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 1, 2013

First repayment (originally scheduled): Aug 30, 2023

Last repayment (originally scheduled): Aug 27, 2033

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

Government of the Kingdom of Tonga

Loan description

China Eximbank provides 5-year grace period extension on RMB 291 million loan for Phase 3 of the National Road Improvement Project (Linked to Record ID#39199)

Grace period•10 yearsGrant element•59.675%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On January 22, 2010, China Eximbank and the Government of Tonga signed an RMB 291 million (or TOP 94 million or $44.2 million) government concessional loan (GCL) agreement for Phase 3 of the National Road Improvement Project (as captured via Record ID#39199). The GCL carried the following borrowing terms: 2% interest rate, 5 year grace period, 20 year maturity, 1% management fee, and 0.75% commitment fee. Then, in September 2013, China Eximbank and the Government of Tonga signed a debt rescheduling agreement (as captured via Record ID#64929), which amended the original borrowing terms by extending the grace period from 5 years to 10 years. All other borrowing terms (maturity, interest rate, and fees) were left untouched. The loan was thus rescheduled for semi-annual repayment between March 21, 2020 and March 21, 2030. The Government of Tonga began repayment of the loan in March 2020.