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Overview

China Eximbank provides $514.9 million buyer's credit loan for Equipment Acquisition Project

Commitments (Constant USD, 2023)$725,298,576
Commitment Year•2008Country of Activity•MoroccoDirect Recipient Country of Incorporation•MoroccoSector•Unallocated/unspecifiedFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 20, 2008
First repayment (originally scheduled)
Jun 18, 2012
Last repayment (originally scheduled)
Dec 14, 2024

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% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Morocco

Loan description

China Eximbank provides $514.9 million buyer's credit loan for Equipment Acquisition Project

Grace period•4.25 yearsGrant element•30.3042%Interest rate (t₀)•4.9%Interest type•Fixed Interest RateMaturity•16.75 years

Narrative

Full Description

Project narrative

On March 20, 2008, the Export-Import Bank of China and the Government of Morocco signed a $514,963,678 buyer's credit loan agreement for an Equipment Acquisition Project. The estimated borrowing terms of the loan include a 16.75-year maturity, a 4.25-year grace period, and an interest rate of 4.9%. The agreement was approved by the Government of Morocco on May 7, 2008 (via Décret n° 2-08-225).

Staff comments

1. The face value of the loan is identified by the Bank Al-Maghrib (the central bank of the Kingdom of Morocco) and the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/xmhkg6e64kxk8c7jtjrxy/DRS-Official-Commitments-from-China-Through-2021.xlsx?rlkey=b4k8u2mg72dd65do8bx5ena53&dl=0 and https://www.bkam.ma/content/download/344785/2923781/BT116_juin.pdf and https://www.dropbox.com/s/66eoeih2gqw1np4/BT116_juin%20%281%29.pdf?dl=0 2. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 16.75 years in 2008. AidData estimates the maturity of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 4.25 years in 2008. AidData estimates the grace period of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all official sector lending from Chinese creditors to government and government-guaranteed borrowing institutions in Morocco was 4.9% in 2008. AidData estimates the interest rate of the China Eximbank loan that supported the Government of Morocco by using this figure. See https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 5. The French project title is l’acquisition d’équipements. 6. This loan is not included in the SAIS-CARI database of Chinese loan commitments that was released in 2020 and re-released in 2021. Nor is it included in the China's Overseas Development Finance Database published by Boston University's GDP Center.