China Eximbank provides $99.3 million buyer’s credit loan for Electric Train Locomotive (18 Units) Acquisition Project (Linked to Record ID#42199)

Project narrative

On May 10, 2015, China Eximbank and Belarusian Railway (a state-owned railway company) signed a $99,361,920 buyer’s credit loan agreement for the Electric Train Locomotive (18 Units) Acquisition Project. The loan was funded through a long-term, $5.7 billion credit line (loan framework agreement) from China Eximbank (captured in Record ID#42199). All subsidiary loans approved under this credit line carried the following terms: 10-15 year maturities, 3-5 year grace periods, and interest rates of 6-month LIBOR + 3% to 4.5% margin. However, the precise borrowing terms of the buyer’s credit loan that supported the Electric Train Locomotive (18 Units) Acquisition Project are unknown. The Government of Belarus issued a sovereign guarantee in support of the loan. Belarusian Railway then used $46,687,420 of the loan proceeds to finance 85% of the cost of a $54,940,000 commercial contract [№ 13CUEC6В 004S/Т/Ю-473] that it signed with CNR Datong Electric Locomotive Co., Ltd. on July 16, 2013 and $52,674,500 of the loan proceeds to finance 85% of the cost of a $61,970,000 commercial contract [№ 13CUE C6B004 S/T/Ю-472] that it signed with CNR Datong Electric Locomotive Co., Ltd. on July 16, 2013. The former contract was used to facilitate the acquisition of eight 7.2MW electric locomotives and the latter contract was used to the acquisition of ten 7.2MW electric locomotives. In total, China Eximbank agreed to cover 85% of the cost of the $116.91 million value of the two commercial contracts. The purpose of this project was to promote the modernization of the rolling stock of Belarusian Railway. CNR Datong Electric Locomotive Co., Ltd was the EPC contractor responsible for implementation. On December 29, 2015, two electric trains departed from a factory owned by CNR Datong Electric Locomotive Co., Ltd. in China and began their journey through Central Asia and onward to Belarus. They arrived in Belarus on February 6, 2016. The remaining locomotives were successfully delivered, but their precise delivery dates are unknown.