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Overview

CDB contributes to $73 million syndicated loan to finance the acquisition of 22 electric locomotives

Commitments (Constant USD, 2023)$39,610,832
Commitment Year•2012Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 25, 2012
First repayment (originally scheduled)
May 25, 2014
Last repayment (originally scheduled)
May 23, 2022

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

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • HSBC (Hong Kong and Shanghai Banking Corporation)

Receiving agencies

State-owned companies

  • Joint Stock Company (JSC) Lokomotiv

Guarantors

State-owned companies

  • Kazakhstan Temir Zholy (KTZ)
  • Kaztemirtrans

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Development Bank contribution to USD 73 million syndicated loan to Joint Stock Company (JSC) Lokomotiv for refinancing purposes

Grace period•2 yearsGrant element•25.9252%Interest rate (t₀)•3.7364%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

On May 25, 2012, JSC Lokomotiv -- a wholly-owned subsidiary of JSC National Company Kazakhstan Temir Zholy (Kazakhstan's state-owned railway company) -- entered into a $73,095,000 buyer's credit loan agreement with JSC SB HSBC Kazakhstan (jointly with HSBC Bank plc), Hong-Kong and Shanghai Banking Corporation (HSBC), and China Development Bank Corporation. The loan carried a 10-year maturity, a 2-year grace period, and an interest rate of 6-month LIBOR plus a 3% margin. It was backed by a Sinosure credit insurance policy and guaranteed by JSC National Company Kazakhstan Temir Zholy and Kaztemirtrans. The borrower was expected to use the loan proceeds to finance the purchase of 22 electric locomotives from CSR Chzhuchzhouskaya Electric Locomotive Company LLC. The loan fully disbursed on July 27, 2012.

Staff comments

1. For the time being, AidData has estimated CDB's contribution by assuming that CDB and HSBC contributed equal amounts ($36,547,500) to the loan syndicate.