China Eximbank provides $80.51 million preferential buyer's credit for Drilling Rigs and Oil Field Equipment and Materials Project (Linked to Record ID#98029, 96221)

Project narrative

On September 27, 2007, China Eximbank and Myanmar Central Bank — signed a $80.51 million preferential buyer's credit (PBC) agreement [China Eximbank PBC No. (2007)10,11,12 TOTAL NO. (031),(032), (033)] for the Drilling Rigs and Oil Field Equipment and Materials Project. This loan was provided to Myanmar Oil and Gas Enterprise (MOGE) — a state-owned oil and gas company in Myanmar -- for the 4 drilling rigs and oil field equipment and materials project. The PBC carried the following borrowing terms: a 15 year maturity, a 5 year grace period, and a 3% interest rate. The borrower had made principal repayments worth $44.28 million and interest repayments worth $19.14 million as of March 31, 2018. The loan’s amount outstanding was $44 million (in loan principal and interest) as of March 31, 2017 and $38.98 million ($36.23 million in loan principal and $2.75 million in loan interest) as of March 31, 2018. There are some indications that the China Eximbank loan for the Drilling Rigs and Oil Field Equipment and Materials Project may have financially underperformed vis-a-vis the original expectations of the lender. In 2020, China Eximbank and the Government of Myanmar signed a debt suspension agreement as part of the G-20 Debt Service Suspension Initiative (DSSI). Under the terms of the agreement, the lender agreed to suspend principal and interest payments due between May 1, 2020 and December 31, 2020 under 3 buyer’s credit loan (BCL) agreements, 6 government concessional loan (GCL) agreements, and 27 preferential buyer’s credit (PBC) agreements (as captured via Record ID#98029). Debt service payments under many of these loan agreements were again deferred in 2021 (as captured via Record ID#96221).