Project ID: 95376

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

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2020-01-01

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

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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%

Bilateral loan

Inter-bank loan

Refinancing