Active Development AidData Chinese Aid

CDB provides $162 million (MNT 316 million) loan to Development Bank of Mongolia for multiple projects

$93.06M USD

Funder	China Development Bank (CDB)
Recipient Organization	Trade and Development Bank of Mongolia
Country	Mongolia
Start Date	Aug 21, 2014
End Date	May 18, 2030
Duration	5,749 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`46979`

Grant Description

CDB provides $162 million (MNT 316 million) loan to Development Bank of Mongolia for multiple projects On August 21, 2014, China Development Bank (CDB) and the Development Bank of Mongolia (DBM) — a state-owned bank in Mongolia — signed a loan agreement worth $162 million (or MNT 316,418.8 million).

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: 8 year maturity and 6% interest rate

📅 Maturity8 years

💹 Interest Rate6%

The Government of Mongolia issued a sovereign guarantee in support of the loan.

The proceeds of the loan were to be used for the construction of a highway, electricity projects, urban infrastructure projects, a project called Steppe Road, railway and energy sector projects to increase mineral exports to China, Japan, and South Korea, and and/or other projects explicitly approved by CDB.

As of June 30, 2018, the loan had achieved a 76.3% disbursement rate ($123.5 million).

📋 Staff Comments

The CDB loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.
The proceeds of the loan were used in part to support the 50MW Choibalsan Thermal Power Plant (TPP) Expansion Project (see Record ID#105532).

📚 Sources & References

Xi
Pu and the USD rate
MONGOLIA CONSTRAINTS ANALYSIS
TDB HAS STRENGTHENED THE COOPERATION WITH CHINESE BANKS
中蒙两国签署多项合作文件
Mongolian and Chinese Enterprisers Establish Cooperation Documents
Mongolia Economic Update
China's Overseas Development Finance, Монгол газар, МАК зэрэг компаниуд гэрээнд гарын үсэг зуржээ
Financing Mongolia’s Mineral Growth
Development Bank of Mongolia 2018 Bond Prospectus.pdf
Offering Memorandum 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

Trade and Development Bank of Mongolia

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