China Development Bank provides $309 million loan to refinance trade cooperation projects under the Belt and Road Initiative
Commitment amount
$ 345102633.73770624
Adjusted commitment amount
$ 345102633.74
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Uzbekistan
Sector
Trade policies and regulations (Code: 330)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
During the first half of 2020, China Development Bank (CDB) entered into a $309,000,000 loan agreement with the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU). The loan carries a 10-year maturity, a 3-year grace period, and a 4.8% interest rate. The proceeds of the loan were to be used by the borrower to refinance the projects related to trade cooperation under the Belt and Road with participation of Chinese enterprises. Loan disbursements in 2020 amounted to $202,193,933.
Additional details
1. The loan's grace period is drawn from the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 and https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 2. The DRS reports a slightly lower interest rate than NBU, which suggests that the loan may carry a floating rather than fixed interest rate. This issue warrants further investigation. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0
Number of official sources
3
Number of total sources
3
Details
Cofinanced
No
Direct receiving agencies [Type]
National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) [State-owned Bank]
Loan Details
Maturity
10 years
Interest rate
4.8%
Grace period
3 years
Grant element (OECD Grant-Equiv)
10.5544%