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Overview

[IPP] Chinese banks pledge a $399.5 million USD syndicated loan for the 250 MW NBT/Malakoff Wind Project in Pakistan

Commitments (Constant USD, 2023)$413,071,531
Commitment Year•2013Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2013
First repayment
Jul 2, 2015
Last repayment
Dec 29, 2027

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)
  • Industrial and Commercial Bank of China (ICBC)

State-owned Policy Banks

  • China Development Bank (CDB)

Cofinancing agencies

State-owned Banks

  • Export-Import Bank of Malaysia

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • NBT Wind Power Pakistan II (Private) Limited (NBTWPPPL-II)

Implementing agencies

State-owned companies

  • Harbin Electric International Co., Ltd. (HEI)

Guarantors

Government Agencies

  • Government of Pakistan

Loan desecription

[IPP] Chinese banks pledge a $399.5 million USD syndicated loan for the 250 MW NBT/Malakoff Wind Project in Pakistan

Grace period•2.5 yearsGrant element•23.9667%Interest rate (t₀)•5.40825%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•15 years

Narrative

Full Description

Project narrative

In 2013, the Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), and Bank of China (BOC) pledged a $399,500,000 USD syndicated loan to NBT Wind Power Pakistan II (Private) Limited for the 250 MW NBT/Malakoff Wind Project in Pakistan. The terms of the loan pledge — memorialized in a non-binding term sheet — were as follows: a maturity period of 15 years, a grace period of 2.5 years, an interest rate of 6-month LIBOR plus a 4.9% margin, a management fee of 2%, and a commitment fee of 1.5%. The Export-Import Bank of Malaysia Berhad also reportedly pledged funds for the project, and Sinosure was also reportedly involved. Harbin Electric International Company Limited was the EPC contractor for the project. NBT Wind Power Pakistan II (Private) Limited (NBTWPPPL-II) was a project company and special purpose vehicle owned by Malakoff International Limited — a company incorporated in Cayman Islands (a wholly-owned subsidiary of Malakoff Corporation Berhad, Malaysia) — and NBT AS, a Norwegian company organized under the laws of Norway. NBT AS owned 40% equity stake in NBTWPPPL-II, while Malakoff International Limited owned a 60% ownership stake.

Staff comments

The average 6-month LIBOR rate in 2013 was 0.409%. Therefore, the interest rate was coded as 0.409% + 4.9%, or 5.309%. According to multiple, official sources, the Government of Pakistan has issued sovereign guarantees in support of all loans issued by Chinese state-owned banks for independent power projects (IPPs) in Pakistan (see https://www.fmprc.gov.cn/ce/cepk/chn/zbgx/t1735166.htm and http://pk.chineseembassy.org/eng/zbgx/202110/t20211010_9558510.htm and https://www.dropbox.com/s/bmx3w2b38o7guxm/Debt%20Pricing%20of%20IPPs%20%28002%29.pdf?dl=0). As such, AidData assumes that the loan captured in this record is backed by a sovereign guarantee from the Government of Pakistan.