Overview

CDB provides EUR 80 million loan to BDB to support SMEs and BRI projects

Commitments (Constant USD, 2023)$96,001,514

Commitment Year•2017Country of Activity•BulgariaDirect Recipient Country of Incorporation•BulgariaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 11, 2017

Start (actual): May 11, 2017

First repayment (originally scheduled): May 11, 2019

Last repayment (originally scheduled): May 9, 2027

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

Bulgarian Development Bank (BDB)

Implementing agencies

State-owned Banks

Bulgarian Development Bank (BDB)

Loan description

CDB provides EUR 80 million loan to BDB to support SMEs and BRI projects

Grace period•2 yearsInterest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

On May 11, 2017, China Development Bank and the state-owned Bulgarian Development Bank (BDB) signed an EUR 80 million interbank loan agreement. The unsecured loan had a 10 year maturity, a 2 year grace period, and an annual interest rate of 6-month EURIBOR plus an unspecified margin. The borrower was authorized to use the loan proceeds to support small- and medium-sized enterprises (SMEs) and strategic projects related to the Belt and Road Initiative (BRI). As of December 31, 2018, the loan had achieved a 100% disbursement rate and the loan’s (principal) amount outstanding was EUR 80 million. The loan’s (principal) amount outstanding was EUR 78 million as of December 31, 2020, EUR 76 million as of December 31, 2021, and EUR 0 as of December 31, 2022.

Staff comments

1. This loan is not included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020.