COVEC provides supplier credit worth 1.1. billion CFAF to Sino-Malian Textile Company

Project narrative

In 2011, China Overseas Engineering Group Co. Ltd. (COVEC), a subsidiary of the state-owned China Railway Group Limited (CREC), provided a supplier credit worth 1,100,000,000 CFA francs to La Compagnie Malienne de Textile (COMATEX S.A. or 马里纺织股份有限公) for unspecified purposes. The borrowing terms of this loan are unknown. COMATEX S.A. was a Malian state-owned textile company established with assistance from the Chinese Government in 1967. It was subsequently “privatized” and it is now jointly owned by COVEC (80% equity stake) and the Government of Mali (20% equity stake). The COMATEX S.A. textile factory is located on the outskirts of the city of Ségou and it has the capacity of produce 2,400 tonnes of fiber per year. Its current production of 650 looms is around 10 million square meters of printed fabric. It also produces dyed yarn.