Overview

CCB provides $36 million buyer’s credit for acquisition of two 2000-horsepower oilfield land drilling rigs

Commitments (Constant USD, 2023)$36,226,667

Commitment Year•2018Country of Activity•MalaysiaDirect Recipient Country of Incorporation•MalaysiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 1, 2018

Last repayment (originally scheduled): Mar 30, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

China Construction Bank Corporation (CCB)

Receiving agencies

Private Sector

Hilong Oil Service Co., Ltd

Implementing agencies

State-owned companies

Sichuan Honghua Petroleum Equipment Co., Ltd.

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan description

CCB provides $36 million buyer’s credit for acquisition of two 2000-horsepower oilfield land drilling rigs

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

In April 2018, Hilong Oil Service Co., Ltd. (“Hilong Malaysia” or 海隆石油技术服务有限公司版权所有 ) — a subsidiary of the Hong Kong-listed Hilong Holding Company that is legally incorporated in the Cayman Islands — entered into a $36,000,000 buyer’s credit loan facility agreement with China Construction Bank to acquire two 2000-horsepower oilfield land drilling rigs from Sichuan Honghua Petroleum Equipment Co., Ltd. for use in Malaysia. The loan carries a 7 year maturity (final maturity date: 2025) and it enjoys a ‘preferential interest rate’. The borrower purchased buyer’s credit insurance from Sinosure on May 17, 2018. As of June 30, 2021, the loan had achieved an 93.1% disbursement rate ($33,545,000 out of $36,000,000) and $10,800,000 had been repaid. The loan’s remaining principal was be fully repayable from 2022 to 2025.

Staff comments

1. The Chinese project title is 马来西亚海隆石油服务有限公司2台2000马力陆地钻机项目. 2. Hilong is a leading integrated oilfield equipment and service provider operating in the People’s Republic of China (PRC) and international markets.