China Eximbank contributes RMB 525 million loan for the Bayport Terminal Expansion Project (Linked to Record ID#95397)

Project narrative

On March 21, 2014, a syndicate of five banks provided an RMB 6.7 billion loan to Shanghai International Port Group (Singapore) Pte. Ltd (SIPG) for the Bayport Terminal Concession Project. The loan carried a 1-year maturity and a 5% interest rate. Bank of China contributed RMB 3 billion. Bank of China made an initial loan disbursement of RMB 1.6 billion on March 21, 2014. Record ID#95383 captures the combined RMB 4.6 billion contribution. Bank of Shanghai contributed RMB 500 million, as captured by Record ID#95385. ICBC contributed RMB 600 million, as captured by Record ID#96387. Bank of Communications contributed RMB 500 million, as captured by Record ID#95386. HSBC contributed RMB 500 million. The purpose of the loan was to support SIPG’s bid for the concession of the Bayport terminal at Haifa Port. Under the terms of its 25-year concession agreement, SIPG was responsible for construction of the facilities at the back terminal, deployment and installation of the equipment and daily running and operation of the terminal. With a total 1,500 meters of quay length, a 78 hectare surface and a 17.3 meters draft, the new Bayport terminal was expected to handle the annual container throughput of 1.86 million TEU. In April 2015, SIPG won its bid to operate the Bayport terminal at Haifa Port (beginning in 2021). Then, in July 2020, SIPG Bayport Terminal Co., Ltd. — a special purpose vehicle and wholly-owned subsidiary of SIPG — secured two loans for the Bayport Terminal Expansion Project: an RMB 525 million loan from the Shanghai Branch of China Eximbank (Record ID#95396) and a $340 million loan from the Shanghai Branch of Bank of China (Record ID#95397). The borrower was expected to use the loan proceeds to finance a $293,477,232 commercial (EPC) contract with China Construction Harbour and Channel Engineering Bureau Group Co., Ltd., which was signed on April 12, 2018. The purpose of the Bayport Terminal Expansion Project was to construct an 805.5-meter-long wharf in the first phase, with an annual design throughput of 1.06 million TEUs, and a 715.7-meter-long wharf in the second phase, with an annual design throughput of 800,000 TEUs. Upon completion, the project was expected to reduce local port congestion, resulting in more efficient and convenient cargo logistics services for Israel and its neighboring areas, and become an important channel of trade with Europe. China Construction Harbour and Channel Engineering Bureau Group Co., Ltd. was the EPC contractor responsible for implementation. The project commenced on July 1, 2018 and concluded on June 15, 2021. September 1, 2021 marked the official start of operations at Haifa Port’s Bayport Terminal by SIPG Bayport Terminal Co., Ltd.