ICBC provides $84.46 million buyer’s credit to facilitate acquisition of 150 railway carriages and 25 generator cars

Project narrative

In August 2003, the Shanghai Branch of the Industrial and Commercial Bank of China (ICBC) and the State Bank of Iran signed an $84.46 million buyer’s credit (loan) agreement to facilitate the acquisition of 150 railway carriages (wagons) — including 138 passenger carriages (wagons) and 12 dining carriages (wagons) — as well as 25 generator cars for Raja Passenger Train Company (an Iranian state-run railway company). The loan was insured (mostly likely by Sinosure) and it carried a 10-year maturity and no grace period. Its interest rate is unknown. However, it is known that the borrower expected to make payments for principal, interest, fees, and insurance worth $116,550,788 — in nominal terms — over the lifetime of the loan. It is also known that the borrower was expected to use the loan proceeds to partially finance a $99.36 million commercial contract between Raja Passenger Train Company and Shanghai Golden Source International Economic and Trade Development Co. Ltd., and CSR Qishuyan Locomotive & Rolling Stock Works (Sifang), which was signed in April 2002. The first batch of passenger cars (41 passenger cars and 4 dining cars) was officially delivered on March 15, 2005. The project was ultimately completed. However, its precise completion date is unknown.