China CITIC Bank contributes $42.484 million to $84.9 million syndicated buyer’s credit loan for Supply of Passenger Cars for Line A of Subway of the City of Buenos Aires (First and Second Complementary Contracts) (Linked to Record ID#41096, #54754, #88199, and #91148)

Project narrative

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 2% default (penalty) interest rate, 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 Record ID#91149, while CCB's contribution is captured via Record ID#41096. The loan's (principal) amount outstanding was $25,490,565 as of December 31, 2010, $37,763,800 as of December 31, 2011, $73,639,410 as of December 31, 2012, $78,899,367.86 as of December 31, 2013, $66,761,003.58 as of December 31, 2014, $46,429,243.40 as of December 31, 2015, $30,345,910.74 as of December 31, 2017, $18,207,546.46 as of December 31, 2018, $6,069,182.18 as of December 31, 2019, and $0 as of December 31, 2020. The proceeds from another ($200,687,550) syndicated loan (from CITIC Bank, ICBC Asia, CMB Wing Lung Bank) were to be used by Argentina’s Ministry of Economy and Public Finance to finance the Second Complementary Contract and the Third Complementary Contract (as captured via Record ID#54754). The $200,687,550 syndicated loan carried the following borrowing terms: an interest rate of LIBOR plus a 3.2% margin, 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 Record ID#54754, while ICBC Asia's contribution is captured via Record ID#88199 and CMB Wing Lung Bank's contribution is captured via Record ID#91148. On January 12, 2013, the passenger cars were put into operation on the Bueno Aires subway network.