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Overview

ICBC (Dubai Branch) provides $50 million loan to Loma Negra Compañía Industrial Argentina S.A. for unspecified purposes

Commitments (Constant USD, 2023)$54,536,079
Commitment Year•2016Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•United Arab EmiratesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2016
First repayment (originally scheduled)
Jun 1, 2017
Last repayment (originally scheduled)
Nov 30, 2019

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • Loma Negra Compañía Industrial Argentina S.A.

Loan description

ICBC’s Dubai Branch provides $50 million loan to Loma Negra Compañía Industrial Argentina S.A. for unspecified purposes

Grace period•1 yearsGrant element•7.9562%Interest rate (t₀)•5.6813%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3.5 years

Narrative

Full Description

Project narrative

In June 2016, Loma Negra Companía Industrial Argentina S.A. (Loma Negra C.I.A.S.A.) signed a $50 million loan agreement with the Dubai Branch of the Industrial and Commercial Bank of China (ICBC) for unspecified purposes. The loan carried an interest rate of 3-month LIBOR plus a 5% margin, a 1-year grace period, and a 3.5-year maturity. The borrower was responsible for make principal payments to the lender in five equal, half-yearly installments. In May 2019, the borrower and lender amended the loan agreement such that the borrower would be responsible for paying outstanding principal ($13,000,000) in nine payments, with the first installment of $5,200,000 in October 2020 and eight more equal, quarterly installments of $975,000 (with the last coming due in November 2023). This rescheduling is captured via Record ID#105815.

Staff comments

1. Loma Negra Companía Industrial Argentina S.A. is an Argentine manufacturer and the country's leading maker of cement, concrete, and lime. It is currently a subsidiary of InterCement Participações, a company of the Brazilian conglomerate Mover Participações. 2. AidData has estimated the all-in interest rate by adding 5% to average 3-month LIBOR in June 2016 (0.65162%). 3. The final maturity date was listed as November 2020 in Loma Negra's 2019 Form 20-F filing, rather than November 2019 (as would be implied by a 3.5 year maturity). This issue warrants further investigation.