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Overview

Export-Import Bank of China contributes EUR 285.6 million syndicated loan to QatarEnergy for the acquisition of 4 LNG tankers (Linked to Record ID#98795)

Commitments (Constant USD, 2023)$309,839,590
Commitment Year•2021Country of Activity•QatarDirect Recipient Country of Incorporation•QatarSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 3, 2021
End (planned)
Dec 31, 2025

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)

Cofinancing agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned companies

  • QatarEnergy (formerly Qatar Petroleum (QP))

Implementing agencies

State-owned companies

  • Hudong-Zhonghua Shipbuilding Group Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

2021 syndicated €571.2 million EUR loan facility from CDB, China Eximbank, and others to QatarEnergy for acquisition of 4 LNG tankers in Qatar

Interest type•Unknown

Narrative

Full Description

Project narrative

On April 22, 2020, QatarEnergy reserved a significant amount of Hudong-Zhonghua's LNG tanker construction capacity through 2027 in a QAR 11 billion (~$3.02 billion) deal. Then, on October 3, 2021, Qatari state-owned QatarEnergy, under its former name Qatar Petroleum, placed an EUR 672 million order with the state-owned China State Shipbuilding Corporation (CSSC) to build 4 new LNG tankers through Hudong-Zhonghua Shipbuilding Group Co., CSSC's a wholly-owned subsidiary. On April 10, 2022, Mitsui O.S.K. Lines, Ltd. (MOL) announced that through a subsidiary it signed a long-term charter contract for the four LNG carriers. According to China Export & Credit Insurance Corporation (Sinosure), the project was financed by a bank syndicate led by the Export-Import Bank of China (China Eximbank) (#98808) and China Development Bank (CDB) (#98795). Sinosure insured about EUR 770 million of the financing, its first underwritten vessel structured financing project. These four LNG tankers were QatarEnergy's first orders using its reserved space in Hudong-Zhonghua's shipyard and are slated for delivery from 2024 through 2025. QatarEnergy could order an estimate of over 60 LNG tankers, according the contract.

Staff comments

1. This project is also known as the Export Project of Four LNG Vessels with a Total Carrying Capacity of 174,000 Cubic Meters. The Chinese project title is 卡塔尔石油——中国船舶LNG船建造项目 or 4艘174,000立方米LNG船舶出口项目. 2. The face value of the syndicated buyer’s credit loan is unknown. For the time being, AidData assumes that it is equivalent to 85% of the value of the EUR 672 million commercial contract (EUR 571.2 million). This issue warrants further investigation. 3. China Eximbank's estimated contribution (EUR 285.6 million) was derived by dividing the assumed value of the commercial contract (EUR 571.2 million) by the number of known lenders (2).