Active Mixed AidData Chinese Aid

ICBC provides export buyer's credit for acquisition of 50 double-decker buses

€39.95M EUR

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Bank Melli Iran
Country	Iran
Start Date	Jan 01, 2005
End Date	Mar 15, 2028
Duration	8,474 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`104609`

Grant Description

ICBC provides export buyer's credit for acquisition of 50 double-decker buses In 2005, the Industrial and Commercial Bank of China (ICBC) signed an export buyer's credit agreement with Bank Melli Iran -- an Iranian state-owned bank -- for the acquisition of 50 double-decker buses.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower was responsible for using the loan proceeds to partially finance an EUR 47 million commercial contract between China CNR Corporation Limited and Raja Passenger Train Company (a subsidiary of Islamic Republic of Iran Railways), which was signed in May 2006. The buses were originally scheduled for delivery 26-28 months after the commercial contract went into effect.

📋 Staff Comments

The face value of the export buyer's credit is unknown. For the time being, AidData assumes that it was worth 85% of the total cost (EUR 39.95 million) of the EUR 47 million commercial contract. This issue warants further investigation.
According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 3.8976-years in 2005. AidData estimates the grace period of the ICBC loan by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0 .
According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 11.165-years in 2005. AidData estimates the maturity of the ICBC loan by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0.
According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Iran was 4.5487% in 2095. AidData estimates the interest rate of the ICBC loan by using this figure. See https://www.dropbox.com/scl/fi/ef7q4y9pxjk6q3syuqmjy/May-2024-DRS-Extraction-of-Data-on-Official-and-Private-Chinese-Loans-to-Iran-and-Borrowing-Terms.xlsx?rlkey=wiqjmhuwunp3jelz3jyfepny8&dl=0.

📚 Sources & References

北车集团中标伊朗50辆双层客车项目
工商银行签署三笔出口买方信贷协议
May 2024 DRS Extraction of Data on Official and Private Chinese Loans to Iran and Borrowing Terms 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.