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Overview

China Eximbank provides second, 5-year grace period extension on RMB 440 million loan for Nuku'alofa Central Business District (CBD) Reconstruction Project (Linked to Record ID#37646, #64926)

Commitment Year•2018Country of Activity•TongaDirect Recipient Country of Incorporation•TongaSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018
Start (actual)
Nov 1, 2018
End (actual)
Nov 1, 2018

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of the Kingdom of Tonga

Loan description

China Eximbank provides second, 5-year grace period extension on RMB 440 million loan for Nuku'alofa Central Business District (CBD) Reconstruction Project (Linked to Record ID#37646, #64926)

Grace period•15 yearsGrant element•64.3421%Interest rate (t₀)•2%Interest type•Fixed Interest RateMaturity•20 years

Narrative

Full Description

Project narrative

On November 19, 2007, China Eximbank and the Government of Tonga signed an RMB 440 million (or TOP 118 million) government concessional loan (GCL) agreement for the Nuku'alofa Central Business District (CBD) Reconstruction Project (as recorded in Record ID#37646). The GCL carried the following borrowing terms: a 2% interest rate, a 5 year grace period, a 20 year maturity, a 1% management fee, and a 0.75% commitment fee. Then, in September 2013, China Eximbank and the Government of Tonga signed a debt rescheduling agreement (captured via Record ID#64926), which amended the original borrowing terms by extending the grace period from 5 years to 10 years. All other borrowing terms (maturity, interest rate, and fees) were left untouched. The loan was thus rescheduled for semi-annual repayment between September 21, 2018 and September 21, 2028. Then, in November 2018, China Eximbank and the Government of Tonga signed a debt rescheduling agreement (captured via Record ID#73248), which amended the original borrowing terms by extending the grace period from 5 years to 15 years. All other borrowing terms (maturity, interest rate, and fees) were left untouched. The loan was thus rescheduled for semi-annual repayment between September 21, 2023 and September 21, 2028.