China Eximbank provides $78.96 million preferential buyer’s credit for Modern Pneumatic and Hydraulic Cylinders Project (Linked to Project ID#66744)

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 Project 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 Project 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.

Additional details

1. The Russian project title is «Организация производства по изготовлению современных пневмо- игидроцилиндров, прецизионных хромированных штоков и труб». 2. Neither of the China Eximbank loans that supported this project are included in the Overseas Development Finance Dataset published by Boston University’s Global Development Policy Center in December 2020. In August 2014, JSC Gidroprivod — a leading manufacturer of hydraulics in the Republic of Belarus — was renamed OJSC “Saleo-Gomel”.

Number of official sources

7

Number of total sources

17