ICBC provides $2 billion facility agreement for infrastructure projects

ICBC provides $2 billion facility agreement for infrastructure projects On April 28, 2015 the Industrial and Commercial Bank of China (ICBC) signed an infrastructure cooperation framework agreement with the Department of Finance and Budget of Equatorial Guinea in Beijing (see ""中国工商银行与赤几签署20亿美元基础设施合作协议"" and ""Republic of Equatorial Guinea: FIRST REVIEW UNDER THE STAFF-MONITORED PROGRAM—PRESS RELEASE; AND STAFF REPORT"" and ""ICBC Signs Infrastructure Cooperation Agreement With Equatorial Guinea"" and ""中国工商银行与赤道几内亚签署20亿美元基础设施合作协议"").

Under the terms of this facility agreement, the Government of Equatorial Guinea can borrow up to $2 billion on commercial terms and without any collateral requirements. China Export & Credit Insurance Corporation (SINOSURE) agreed to insure borrowings through this facility.

Under this agreement, ICBC will establish a long-term strategic partnership with the Equatorial Guinean government and together with Sinosure, provide financial support to the Equatorial Guinean government and Chinese enterprises for investment and financing in the country in the areas including future project development and construction, market operation and financing transactions.

According to the International Monetary Fund, the Government of Equatorial Guinea had not drawn on this facility as of November 2018.

A Economist Intelligence Unit report from 2015 suggests that the priority projects to be funded through this facility agreement include construction of new industrial cities (one at Mbini and one at Luba) and power sector projects.