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Overview

Chinese Bank provides $150 million loan — via EPCF arrangement with CMEC — to GFH Financial Group for California Village project

Commitments (Constant USD, 2023)$150,944,444
Commitment Year•2018Country of Activity•BahrainDirect Recipient Country of Incorporation•China (People's Republic of)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 1, 2018

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% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Unspecified Chinese State-owned Bank

Receiving agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Implementing agencies

State-owned companies

  • China Machinery Engineering Corporation (CMEC)

Guarantors

Government Agencies

  • Unspecified Chinese Government Institution

Loan description

Chinese Bank provides $150 million loan — via EPCF arrangement with CMEC — to GFH Financial Group for California Village project

Interest type•Unknown

Narrative

Full Description

Project narrative

In July 2018, GFH Financial Group awarded China Machinery and Engineering Corporation (CEMC) a turnkey Engineering, Procurement & Contracting (EPC) contract worth $150 million for the California Village project. California Village is a 112,127 sqm high-end, mixed use development based in Dubailand. It consists of more than 200 private villas and 400 branded residences opposite to the IMG Worlds of Adventure theme park. The exact terms of the contract are unknown. China Machinery Engineering Corporation (CMEC) is the contractor responsible for both the financing and the construction of the project. The $150 million turnkey engineering, procurement and contracting (EPC) contract was to be covered by unspecified Chinese banks under an insurance policy to be issued by Chinese state government agencies.

Staff comments

1. While the specific bank is unknown, it is very likely a state-owned bank as, among Chinese state-owned banks, the major state-owned ones are the most globalized. This issue merits further investigation.