China Eximbank restructures 1998 loan for Phase 1 of Les Mamelles Housing Project in 2011 (Linked to Record ID#13307, ID#67498, and ID#73578)

Project narrative

On August 20, 1998, China Eximbank and the Government of Seychelles signed an RMB 87,980,000 government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.13 (38) 1998] for Phase 1 of the Les Mamelles Housing Project. The loan originally carried the following borrowing terms: a 4% interest rate, a 8-year maturity, a 4-year grace period, a 0.25% management fee, and a 0.5% commitment fee. The full face value of the loan was disbursed. Then, in 2004, China Eximbank and the Government of Seychelles signed an agreement to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 87,980,000) would be repaid according to the following repayment terms: a 2% interest rate, a 16-year maturity, and a 5-year grace period. The parties also agreed that repayments would be made in twelve, semi-annual installments of RMB 7.2 million between 2009 and 2014. However, due to economic difficulties, the Government of Seychelles had difficulty servicing this loan even after the 2004 rescheduling. Consequently, as of March 2011, principal and interest arrears (worth RMB 48,402,062.25) had accumulated. Then, on April 18, 2011, China Eximbank and the Government of Seychelles signed another agreement [CHINA EXIMBANK GCL NO.13D (38) 1998] to reschedule the repayment terms of this loan. The parties agreed that the outstanding balance of the loan (RMB 87,891,876.33) would be repaid according to the following repayment terms: 30.5-year maturity (367 months), 20.5-year grace period (247 months), and a 2% interest rate. The parties also agreed that repayments would be made in twenty, semi-annual installments between September 21, 2019 and March 20, 2029. The agreement also stipulated that the borrower could defer payment of an unpaid commitment fee (worth RMB 275,854.20) and unpaid accrued interest (RMB 21,045,948.02) to the first repayment date (September 21, 2019). This loan rescheduling was part of a larger debt restructuring agreement with China Eximbank (captured in Umbrella Record ID#13307). Record ID#73578 captures the 2004 rescheduling of the loan for Phase 1 of the Les Mamelles Housing Project, and Record ID#67500 captures the 2011 rescheduling of the loan for Phase 1 of the Les Mamelles Housing Project.