China National Complete Engineering Corporation pledges $500 million USD loan to Ukraine for construction of affordable housing in Kyiv

In January 2018, China National Complete Engineering Corporation (中国成套工程有限公司) pledged that it would provide Ukraine with a loan worth $500 million USD for the construction of leased housing in Kyiv. The agreement was signed by CNCEC and the National Mortgage Bureau of Ukraine. The Ukrainian government is expected to issue a sovereign guarantee for the project. Construction of affordable housing in Kyiv was first proposed in 2013 by Ukrainian Prime Minister Mykola Azarov . Discussions with Chinese institutions then commenced, and the project cooperation framework was signed between China National Complete Engineering Corporation and Ukrainian State Mortgage Agency in October 2016. As of 2018, CNCEC was still working with the Ukrainian Ministry of Trade and Finance and the Ukrainian State Mortgage Agency. The affordable housing project aimed to provide homes to veterans of the conflict between Russia and Ukraine. The expected borrowing terms are as follows: 15 year maturity, 3 year grace period, and 4.5% interest rate. The loan proceeds would enable the Government of Ukraine to build 1.44 million m2 of housing (approximately 30,600 apartments) under conditions of mortgage financing or financial leasing and an annual interest rate not higher than 15.3%. "

Additional details

The terms of the loan including, maturity, potential grace period, and interest rate are currently set with expected ones.

Number of official sources

3

Number of total sources

10