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Chinese Government extends $4.5 billion line of credit for 12 petrochemical projects (Linked to Record ID#67641)
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Central Bank of Iran |
| Country | Iran |
| Start Date | Nov 20, 2014 |
| End Date | Apr 25, 2032 |
| Duration | 6,366 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 41274 |
Grant Description
Chinese Government extends $4.5 billion line of credit for 12 petrochemical projects According to a ECCO source published on November 20, 2014, China agreed with Iran to open a 4.5 billion USD line of credit for 12 new petrochemical projects in Iran in 2014. Iran successfully opened letters of credit to finance eight of these projects.
As of November 20, 2014, legal and administrative procedures for eight petrochemical projects had been completed, with the other four projects in the pipeline, and the Chinese financing of the petrochemical project was planned to be finalized in Iran's Central Bank.
In June 2014, the Chinese Government issued a loan for the Sadaf Petrochemical Project, which was captured in Record ID#67641. The loan that supported this project was likely drawn from the line of credit captured in Record ID#41274.
Staff Comments
This project is not to be confused with #41429, which is a 2 billion USD line of credit opened to finance four different petrochemical projects. The specific financier of this project is unknown. However, around the time that the project was financed, China reportedly owed Iran over $20 billion in oil payments. This funding was frozen in overseas banks after US-led sanctions made it difficult for Beijing to transfer money to Tehran. Iran and China reportedly reached a deal to settle some parts of the frozen money through China’s funding of Iranian petrochemical projects. Also, in 2017, a Vice President of China Eximbank reported (see 'China’s EXIM Inks $1.5 bn High-Speed Rail Deal with Iran') that it had financed 26 electricity, petrochemical, oil and gas and nonferrous metal projects in Iran worth $9 billion. Therefore, China Eximbank is the most likely funder of this project.
Sources & References
- Chinese Funding 12 Petchem Projects
- Iran to use $4.5 billion worth of Chinese financing for petrochemical projects
- China to finance Iran's petrochemical industry
- 伊媒称中国对伊项目融资翻番
- China Opens $2b Credit for Petrochem Projects
- Iran signs $4.5 billion deal with China 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.
All Grantees
Central Bank of Iran
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