China Eximbank restructures $12.1 million for Sino-Zimbabwe Cement Plant Project via maturity extension and interest rate reduction (Linked to Project ID#66956)

In 1997, the Export-Import Bank of China provided a $12.1 million loan to the Government of Zimbabwe’s Industrial Development Commission (IDC) for the Sino-Zimbabwe Cement Plant Project (see project #66956). This loan carried the following terms: a 13-year maturity, 8 year grace period, and 4% interest rate. IDC, in turn, used the proceeds of this loan to on-lend to Sino-Zimbabwe Cement Company, which is a joint venture of China Building Material Industrial Corporation for Foreign Economic and Technical Cooperation (a Chinese state-owned company) and IDC. IDC holds a 35% equity stake and China Building Material Industrial Corporation for Foreign Economic and Technical Cooperation holds a 65% equity stake in the Sino-Zimbabwe Cement Company. In October 2004, China Eximbank signed a debt restructuring agreement with the Ministry of Finance in Harare. This agreement reduced the interest rate from 4% to 2% and extended the maturity period from 13 years to 20 years.

Additional details

The Sino-Zimbabwe Cement Plant Project is also known as the Huajin Cement Plant Project.

Number of official sources

2

Number of total sources

5