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Overview

China Eximbank provides $8.5 million buyer’s credit loan for Iran's Bank of Industry and Mine to produce sodium carbonate used in glass manufacturing

Commitments (Constant USD, 2023)$20,148,820
Commitment Year•2000Country of Activity•IranDirect Recipient Country of Incorporation•IranSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2000
Start (actual)
Jan 1, 2000
First repayment (originally scheduled)
Jul 28, 2004
Last repayment (originally scheduled)
Jan 22, 2012

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 for Iran's Bank of Industry and Mine. More detailed locational information can be found at https://www.openstreetmap.org/node/711765961.

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 Banks

  • Iran Bank of Industry and Mines

Loan desecription

China Eximbank provides $8.5 million buyer’s credit loan for Iran's Bank of Industry and Mine to produce sodium carbonate used in glass manufacturing

Grace period•4.5756 yearsGrant element•13.1255%Interest rate (t₀)•7.3739%Interest type•UnknownMaturity•12.0664 years

Narrative

Full Description

Project narrative

In January 2000, China Eximbank issued a $8.5 million buyer’s credit loan to Iran’s Bank of Industry and Mine — an Iranian government-owned bank — for the production of sodium carbonate used in glass manufacturing. The borrowing terms of the loan are unknown. However, it is known that the loan fully disbursed. Iran subsequently imported $8 million worth of sodium carbonate from China, but once the sodium carbonate was imported, Iran became self-sufficient in production.

Staff comments

1. 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. 2. 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 4.5756 years in 2000. AidData estimates the grace period of the China Eximbank loan to Iran’s Bank of Industry and Mine 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 3. 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 12.0664 years in 2000. AidData estimates the maturity of the China Eximbank loan to Iran’s Bank of Industry and Mine 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 interest rate of all official sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 7.3739% in 2000. AidData estimates the interest rate of the China Eximbank loan to Iran’s Bank of Industry and Mine 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