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Overview

CDB provides $20 million term loan to Trade and Development Bank of Mongolia for on-lending purposes

Commitments (Constant USD, 2023)$21,814,431
Commitment Year•2016Country of Activity•MongoliaDirect Recipient Country of Incorporation•MongoliaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 14, 2016
First repayment (originally scheduled)
Jul 14, 2017
Last repayment (originally scheduled)
Dec 31, 2018

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Trade and Development Bank of Mongolia

Implementing agencies

State-owned Banks

  • Trade and Development Bank of Mongolia

Loan description

CDB provides $20 million term loan to Trade and Development Bank of Mongolia for on-lending purposes

Grace period•1 yearsGrant element•7.5243%Interest rate (t₀)•5.48335%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On July 14, 2016, China Development and the Trade and Development Bank of Mongolia signed a $20 million term facility agreement. The proceeds of the loan were to be used by the borrower to on-lend to local Mongolian companies at low interest rates. The CDB loan carried a 3 year maturity and the interest of the facility was repayable semi-annually until final repayment due at the maturity of the facility in January 2020. The principal amounts outstanding under the China Development Bank Loan bear interest at a rate of LIBOR plus 4.5% per annum, payable semi-annually beginning on the date of first use of funds under the facility. The outstanding balance of the loan amounted to $19,927,092 (MNT 52,665,710 thousand) and $19,860,943 (MNT 48,205,091) on December 31, 2018 and December 31, 2017, respectively.

Staff comments

1. The CDB loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 2. AidData has calculated the all-in interest rate for this loan (5.49907%) by adding the margin (4.5%) to the average 6-month LIBOR rate in July 2016 (0.99907%). In absence of a specified LIBOR term, AidData assumes a 6-month LIBOR reference rate.