Active Mixed AidData Chinese Aid

China Eximbank provides RMB 151,698,000 loan for Agricultural Comprehensive Development Project

¥151.7M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Xintian (Suntime) International Economic and Technical Cooperation (Group) Co., Ltd.
Country	Mexico
Start Date	Mar 28, 2001
End Date	Aug 09, 2029
Duration	10,361 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`102932`

Grant Description

China Eximbank provides RMB 151,698,000 loan for Agricultural Comprehensive Development Project On March 28, 2001, China Eximbank signed an agreement to loan RMB 151,698,000 to support the implementation of Xintian International (Group) Company's Agricultural Comprehensive Development Project in Mexico.

The loan had a maturity of 10-years. Other information about the agreement and the project itself is unknown.

Then, on May 28, 2001, Xinjiang Yilite Industrial Co., Ltd. agreed to serve as the guarantor for the RMB 151,698,000 loan following approval from shareholders.

A mutual guarantee contract was signed between Xinjiang Yilite Industrial Co., Ltd. and Xintian International (Group) Company.

Then, on June 29, 2001, shareholders of Xinjiang Yilite Industrial Co., Ltd. approved the use of RMB 160 million in assets as collateral for the guarantee.

On the same day, Xintian International (Group) Company signed a counter-guarantee agreement with Xinjiang Yilite Industrial Co., Ltd. pledging its 100% equity in Mexico Xintian Variable Capital Co. Ltd. as a counter-guarantee. The disbursement timeline following these agreements is unclear.

Then, on September 13, 2010 and November 2, 2010, Xintian International (Group) Company received loan collection notices from China Eximbank requesting repayment on the loan principal and all accumulated interest.

Xinjiang Yilite Industrial Co., Ltd. subsequently received a letter on December 6, 2010 from Zhong Lun Law Firm, who had been hired by China Eximbank to inform the company that they were required to perform their duties as guarantor and repay the loan with interest before January 31, 2010 under threat of lawsuit.

On January 28, 2011, Xintian International (Group) Company submitted a request to the Chinese Ministry of Commerce and the Ministry of Finance to convert the loan principal and interest into state capital, which would relieve the comapny of its repayment obligations. China Eximbank appears to have not pursued legal action following this request.

Although Xintian International (Group) Company failed to repay the loan before the March 2011 maturity date, the Chinese Ministry of Finance ultimately agreed to transfer the borrowed funds to state capital and relieve the company from its repayment obligations as of July 16, 2011.

📋 Staff Comments

1. Although the exact grounds for which Xintian International (Group) Company requested the conversion of its debt into state capital are unknown, a notice released by the Chinese Ministry of Commerce and the Ministry of Finance on June 7, 2011 indicates the request may have been made on the grounds of operational difficulties or force majeure (https://q.stock.sohu.com/cn,gg,600197,1318511805.shtml).

📚 Sources & References

2001年中国人民银行大事记
新疆伊力特实业股份有限公司
四届二十五次董事会会议决议公告
重大事项公告, 2012 年半年度报告
新疆伊力特实业股份有限公司四届十七次董事会会议决议公告
伊力特：2010年年度报告摘要 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.