China Eximbank provides $71.825 million preferential buyer’s credit for Production of Hydrostatic Transmissions and Industrial Hydraulic Products Project (Linked to Record ID#66745)

Project narrative

On May 15, 2017, China Eximbank and OJSC “Saleo-Gomel” («САЛЕО-Гомель») — a state-owned manufacturing company in Belarus — signed a $71.825 million preferential buyer’s credit (PBC) loan agreement [CHINA EXIMBANK № PBC 2017 (11) TOTAL № (437)] for the Production of Hydrostatic Transmissions and Industrial Hydraulic Products Project (as captured via Record ID#66744). On the same day, China Eximbank and OJSC “Saleo-Gomel” signed a $78.96 million preferential buyer’s credit (PBC) loan agreement [CHINA EXIMBANK № PBC 2017 (10) TOTAL № (436)] for the Modern Pneumatic and Hydraulic Cylinders Project (as captured via Record ID#66745). Both PBCs carried 15-year maturities and OAO ASB Belarusbank was designated as the agent bank responsible for servicing both loans. Their interest rates and grace periods are unknown. The Government Belarus issued sovereign guarantees in support of both loans. The proceeds from both PBCs were to be used by the borrower to support its manufacturing facility in the city of Gomel. However, in June 2020, OJSC “Saleo-Gomel” filed for bankruptcy.