Bank of China provides $21.23 million buyer’s credit loan for Huludao Steel Pipe Factory Construction Project

Project narrative

In April 2014, the Brunei Economic Development Board (BEDB) signed a land lease agreement with Huludao City Steel Pipe Industrial Co., Ltd. — a private Chinese enterprise — for a $50 million investment project to develop a welded rounding carbon steel pipe manufacturing facility (see Record ID#38214). Then, in March 2015, the Liaoning Branch of Bank of China and Huludao (Brunei) Steel Co., Ltd. (葫芦岛（文莱）钢铁有限公) — a special purpose vehicle and and wholly owned subsidiary of Huludao City Steel Pipe Industrial Co., Ltd. — signed an $21.23 million buyer’s credit loan for the Huludao Steel Pipe Factory Construction Project. The borrowing terms of the loan are unknown. However, it is known that Sinosure provided buyer’s credit insurance. The purpose of the project was to construct a steel pipe factory in Salambigar Industrial Park with the capacity to manufacture 100,000 tons of welded rounding carbon steel pipes (for application in the oil and gas as well as the construction industries with an export value of $1,000 million per annum). The project was expected to create 300 jobs and bring more business opportunities to local transportation, logistics and other industries. Construction began in June 2015 and the factory was put into operation on October 10, 2017.