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Overview

China Eximbank provides RMB 1.79 billion buyer’s credit loan to National Iranian Tanker Company for construction of 5 very large crude carriers (Linked to Record ID#71557)

Commitments (Constant USD, 2023)$502,263,985
Commitment Year•2001Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2001
Start (actual)
Mar 31, 2002
End (actual)
Jun 15, 2004
First repayment
Aug 24, 2004
Last repayment
Jun 14, 2015

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project provides a buyer’s credit loan to the National Iranian Tanker Company, located in Tehran Province, Tehran, E Atefi Alley, No. 35, Iran. More detailed locational information can be found at https://www.openstreetmap.org/node/11180846612.

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

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned companies

  • China Shipbuilding Industry Corporation (CSIC)
  • Dalian Shipbuilding Industry Co., Ltd. (DSIC)
  • National Iranian Tanker Company (NITC)

Implementing agencies

State-owned companies

  • China Shipbuilding Trading Company (CSTC)
  • Dalian Shipbuilding Industry Co., Ltd. (DSIC)

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

China Eximbank provides RMB 1.79 billion buyer’s credit loan to National Iranian Tanker Company for construction of 5 very large crude carriers

Grace period•3.6476 yearsGrant element•32.3565%Interest rate (t₀)•4.0949%Interest type•UnknownMaturity•14.4598 years

Narrative

Full Description

Project narrative

In 2001, China Eximbank and the National Iranian Tanker Company (NITC) — a state-owned Iranian company — signed a $370 million buyer’s credit loan agreement for the construction of 5 very large crude carriers (or VLCCs). The borrowing terms of the loan are unknown. It is known that the loan was disbursed in two separate tranches: a $110 million tranche (captured via Record ID#71557) and an RMB 1.79 billion tranche (captured via Record ID#67031). It is also known that the borrower purchased buyer’s credit insurance from Sinosure worth approximately $500 million (covering principal and interest repayments). The proceeds of the loan were used to finance a commercial contract that NITC signed with China Shipbuilding Industry Corporation and Dalian Shipbuilding Xinchang in August 1998. The purpose of this project was to purchase five, 300,000 ton VLCCs from China Shipbuilding Industry Corporation and Dalian Shipbuilding Xinchang. The first VLCC (tanker) was delivered in April 2002 and the project was ultimately completed on June 15, 2004.

Staff comments

1. The National Iranian Tanker Company (NITC, Persian: شرکت ملی نفتکش ایران‎) is a subsidiary of the National Iranian Oil Company, which was privatized in 2009. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 3.6476 years in 2001. AidData estimates the grace period of the China Eximbank loan to the National Iranian Tanker Company by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 14.4598 years in 2001. AidData estimates the maturity of the China Eximbank loan to the National Iranian Tanker Company by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 4.0949% in 2001. AidData estimates the interest rate of the China Eximbank loan to the National Iranian Tanker Company by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0