China Eximbank provides $200 million to loan to NBU for on-lending purposes in 2019
Commitment amount
$ 224712922.45242786
Adjusted commitment amount
$ 224712922.45
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Uzbekistan
Sector
Banking and financial services (Code: 240)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
In January 2019, China Eximbank and the National Bank for Foreign Economic Affairs of the Republic of Uzbekistan (NBU) signed a $200 million loan (facility) agreement for on-lending purposes. The loan carries a 5-year maturity and interest rate of LIBOR plus a 3% margin. The other borrowing terms of the loan are unknown. According to NBU’s 2019 Annual Report, $120 million of the loan proceeds were on-lent to other (unspecified) commercial banks in Uzbekistan to facilitate cross-border economic and trade transactions.
Additional details
1. Joint-Stock Commercial Bank “Uzbek Industrial and Construction Bank” (Uzpromstroybank) is likely one of the banks to which NBU on-lent the proceeds of the China Eximbank loan (see pg. 63 of https://www.rns-pdf.londonstockexchange.com/rns/0121V_1-2019-11-28.pdf). However, this issue requires further investigation. 2. This China Eximbank loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 3. The face value of the loan is equivalent to 1,689,306 million soums. 4. AidData has estimated the all-in interest rate by adding 3% to average 6-month LIBOR in January 2019 (2.848%).
Number of official sources
2
Number of total sources
4
Details
Cofinanced
No
Direct receiving agencies [Type]
The National Bank for Foreign Economic Affairs of the Republic of Uzbekistan [State-owned Bank]
Implementing agencies [Type]
The National Bank for Foreign Economic Affairs of the Republic of Uzbekistan [State-owned Bank]
Loan Details
Maturity
5 years
Interest rate
5.848%
Grant element (OECD Grant-Equiv)
2.2646%