CDB provides $16.4 million loan for battery plant in Brest (Linked to Record ID#85162)

Project narrative

On May 10, 2015, China Development Bank and the Development Bank of the Republic of Belarus (DBRB) — a state-owned bank in Belarus — signed a $700 million master credit agreement to support a variety of projects in transport, energy, industry, infrastructure, and SME sectors as well as projects undertaken by residents of the Great Stone Industrial Park. The total value of each investment project supported through a subsidiary CDB loan under the master credit agreement (captured via Record ID#85162) could not be less than $1 million. Loan maturities were based on the project payback periods and could not exceed 15 years. Grace periods were not to exceed 5 years. Loans were to be repaid at an annual interest rate of 6-month LIBOR (equal to 0.417% in May 2015) plus a 5.5% margin, and with a commitment fee of 0.4% and a management fee of 0.8%. The proceeds of any subsidiary CDB loan under the master credit agreement could not be used to finance more than 85% of the total cost of a given investment project and at least 50% of the value of each subsidiary CDB loan had to be allocated to Chinese equipment, works, or services. Fulfillment of obligations under the loan agreements could be secured by a pledge of movable and immovable property, suretyship, guarantee, insurance by the Bank of a default risk, guarantee monetary deposit, transfer to the CDB of the title to property including property rights, or other means provided by the legislation of the Republic of Belarus. The subsidiary CDB loan agreements also contained covenants relating to the use of funds and provided China Development Bank with the right to monitor the use of credit facilities by end borrowers (i.e., DBRB's customers). If DBRB were to breach the covenants, China Development Bank had the right to demand loan repayment and cease all disbursements under the credit facility. On November 17, 2017, DBRB issued a $16.4 million subsidiary CDB loan to AiPower (Белорусское ООО «АйПауэр») to finance the construction of a $25.9 million battery plant in Brest. Anhui Foreign Economic Construction Corporation was the contractor responsible for project implementation. Construction began on December 27, 2017. The plant was originally expected to go into operation by the end of 2018. However, it ultimately went into operation in March 2019. The plant’s operations were suspended in June 2019 due to environmental safety concerns.