ICBC Asia contributes $66.9 million to a $200.6 million syndicated buyer’s credit loan for Supply of 279 Passenger Cars for Line A of Subway of the City of Buenos Aires (Contracts 2 & 3) (Linked to Project ID#41096, #91149, #91148, and #54754)

On November 5, 2008, Argentina's Secretary of Transport of the Federal Planning Ministry, Public Investment Services, and China CITIC International Cooperation Corporation Limited (CITICICC) signed a framework agreement for the supply of 279 passenger cars for the subway (underground) network of Buenos Aires. On the same day, Argentina’s Secretary of Transport of the Federal Planning Ministry, Public Investment and Services, and CITICICC signed the First Complementary Contract for the supply of 45 Passenger Cars for Line “A” of the Subway (Underground) Network of Buenos Aires and the Second Complementary Contract for the supply of 40 cars of passengers for Line “A” of the Subway (Underground) Network of Buenos Aires. On July 13, 2010, the Third Complementary Contract for Line “A” of the Subway (Underground) Network of Buenos Aires was signed for the supply of 65 passenger cars. On January 27, 2010, CITIC Bank and China Construction Bank (CCB) signed a $84,968,550 syndicated buyer’s credit loan with Argentina’s Ministry of Economy and Public Finance to supply cars to Line A of the Subway Network of Buenos Aires. The loan carried the following borrowing terms: an interest rate of LIBOR plus a 3.15% margin, a 0.25% commitment fee, a 0.5% management fee, and a 10-year maturity. Sinosure provided export buyer’s credit insurance for the loan. The proceeds of the loan were to be used by the borrower to finance the First and Second Complementary Contracts. CITIC Bank and CCB each contributed $42,484,275 to the syndicated buyer’s credit loan. CITIC Bank's contribution is captured via Project ID#91149, while CCB's contribution is captured via Project ID#41096. Then, on October 13, 2011, CITIC Bank, ICBC Asia, and CMB Wing Lung Bank, signed a separate, $200,687,550 syndicated buyer's credit loan (BCL) agreement with Argentina’s Ministry of Economy and Public Finance for the same project. Each bank in the syndicate contributed $66,895,850. The borrower was expected to use the proceeds of the loan to finance the Second Complementary Contract and the Third Complementary Contract. The $200,687,550 syndicated loan carried the following borrowing terms: an interest rate of LIBOR plus a 3.2% margin, a 2% default (penalty) interest rate, a commitment fee of 0.25%, a management fee of 0.2%, and a maturity of 6.5 years. Sinosure provided buyer’s credit insurance. CITIC Bank, ICBC Asia and Wing Lung Bank each contributed $66,895,850 to that loan. CITIC Bank's contribution is captured via Project ID#54754, while ICBC Asia's contribution is captured via Project ID#88199 and CMB Wing Lung Bank's contribution is captured via Project ID#91148. On January 12, 2013, the passenger cars were put into operation on the Bueno Aires subway network.

Additional details

1. The loan contract can be accessed in its entirety via https://www.dropbox.com/s/cf12xr1nblp05df/anexo_4268294_2.pdf?dl=0. 2. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture the syndicated loan that supported this project. 3. The Chinese project title is 中信建设出口布宜诺斯艾利斯市地铁A线车辆项目. The Spanish project title is La aquisición de material rodante para las líneas de subterráneos de la Ciudad Autónoma de Buenos Aires. 4. AidData has estimated the all-in interest rate by adding 3.2% to average 6-month LIBOR in October 2011 (0.595%).

Number of official sources

9

Number of total sources

13