ICBC participates in $120 million syndicated loan for Diesel Multiple Units (DMUs) Acquisition Project (Linked to Project ID #67525)

On April 17, 2018, the Standard Bank of South Africa and the Industrial and Commercial Bank of China (ICBC) signed a $120 million syndicated loan agreement with the Government of Angola’s Ministry of Transport for the Diesel Multiple Units (DMUs) Acquisition Project. The loan carried a 12-year maturity. Its interest rate and grace period are unknown. The loan was backed by a Sinosure credit insurance policy. The borrower was expected to use the loan proceeds to partially finance a $169,370,000 commercial contract (with a 44-month term) between Instituto Nacional de Caminhos de Ferro de Angola (INCFA) — the Angolan railway authority — and CRRC Tangshan Co., Ltd. The purpose of the project was to acquire 10 Diesel Multiple Unit (DMUs) — as well as spare parts, rolling stock, and maintenance and technical support for the 10 DMUs — to support Luanda Railway Line known as Caminho-de-Ferro de Luanda (CFL) that runs between Bungo station and the New International Airport (also known as NAIL) in Luanda. CRRC Tangshan Co., Ltd. was the contractor responsible for project implementation. The first batch of 4 DMUs were shipped to Angola from Tianjin Port on February 10, 2020. Then, on March 10, 2020, a second batch of 3 DMUs was dispatched from Tianjin Port to Lobito Port in Angola. These seven CRRC-made DMUs were put into operation in Angola in February 2022. The final batch of 3 DMUs was shipped to Angola on June 9, 2022.

Additional details

1. Project ID#65524 captures a $148,721,360 Bank of China loan to Angola for rail link to New Angola International Airport. 2. ICBC holds a 20% ownership stake in the Standard Bank of South Africa. 3. The precise monetary value of ICBC’s contribution to the loan syndicated is unknown. For the time being, AidData assumes equal contributions ($60 million) across the two known members of the loan syndicate. 4. This loan is not captured by the Chinese Loans to Africa (CLA) Database that SAIS-CARI released in July 2020 and updated in March 2021 (which is now maintained by Boston University’s Global Development Policy Center). 4. The Chinese project title is 安哥拉内燃动车组车辆运输.

Number of official sources

3

Number of total sources

10