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Industrial and Commercial Bank of China contributes $200 million to syndicated loan for Nacala Corridor Railway and Port Project
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | Corredor Logístico Integrado De Nacala SA |
| Country | Mozambique |
| Start Date | Nov 01, 2017 |
| End Date | Nov 30, 2027 |
| Duration | 3,681 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 57652 |
Grant Description
ICBC contributions to USD 2.73 billion syndicated loan for Nacala Corridor Railway and Port Project In November 2017, a group of banks provided a syndicated loan of $2.73 billion to Corredor Logístico Integrado De Nacala SA — a project company and special purpose vehicle owned by Vale (85% equity stake) and Mitsui (15% equity stake) — for the Nacala Corridor Railway and Port Project.
The interest rate is calculated using the average 6-month LIBOR of 1.626% from November 2017 plus 190 basis points = 3.526%. The Industrial and Commercial Bank of China (ICBC) reportedly contributed $200 million to this loan syndicate.
Other funders were Mizuho Bank, Ltd., the Japan Bank for International Cooperation (JBIC), African Development Bank and other eight private financial institutions.
The purpose of the project is to construct the railway and port infrastructure that is needed to transport and export coal produced from the Moatize coal mine in Mozambique.
It involves the construction of a 912 km railway that connects the Moatize coal mine developed by Vale S.A. and Mitsui & Co, Ltd. in Tete to the port of Nacala through part of Malawi.
The railway has three sections: (1) the Nacala-to-Velha section that connects the village of Andre Mossuril to the town of Nacala-a-Velha; (2) the Lumbo section that connects the city of Monapo to the port village of Lumbo; and (3) the Cuamba-Lichinga section that connects the town of Cuamba to the city of Lichinga.
The project also involves the construction of an export terminal and a coal storage yard at the port of Nacala-a-Velha.
Upon completion, the project will facilitate rail and ship transport of produced coal up to a volume of 18 million tons per annum.
China Communications Construction Group Ltd. was one of the contractors involved in that implementation of this project. A groundbreaking ceremony for this project took place on May 12, 2017. On Janurary 20th, 2021, Mitsui & Co decided to sell its equity stake to Vale.
Staff Comments
- The Portuguese project title is Projecto do Corredor Logístico Integrado de Nacala. The Chinese project title is 纳卡拉物流走廊项目.
- The $2.73 billion loan agreement was signed in November 2017 by and between the Japanese Mizuho Bank, Ltd. alongside the Japan Bank for International Cooperation, the African Development Bank, and 9 other private financial institutions and the four project companies established in Mozambique and Malawi by Vale S.A. and Mitsui & Coi, Ltd. in connection with project finance loans in the total amount of $2.73 billion.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Mozambique: Project Finance 2019
- Project for the Study on Development on the Sena Corridor
- Way: Moatize Coal Mine (192528821) Moçambique: Between Moatize and Kambulatsitsi: roads, railroads, waterways, mine area and res areas
- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 20-F
- Way: Nacala Coal Terminal (325196105)
- Nacala railway
- Keeping on track: Nacala Corridor
- Brazil's Vale says Nacala logistics corridor gets $2.7 bln funding
- 中铁二十局莫桑比克公司实现“华丽转身”
- 莫桑比克Nakala铁路项目施工经理Tomar现场办公
- 中交集团签订莫桑比克纳卡拉煤码头项目主合同
- JBIC Provides Project Finance for Construction of Nacala Railway and Port Infrastructure in the Republic of Mozambique and the Republic of Malawi
- Opening ceremony held for the Mozambique Nacala Corridor rail and port infrastructure project
- Project Financing for the Nacala Corridor Railway and Port Project in the Republic of Mozambique
- League Tables
- 中国铁建二十局签订莫桑比克纳卡拉走廊铁路项目
- Form 20-F VALE S.A. Federative Republic of Brazil
- Mitsui Entered Into Heads of Agreement for Moatize Coal Mine
- Nacala Corridor Rail & Port Infrastructure Projects
- PFI League Tables 2017
- Multinational - Nacala Rail and Port Project 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
Corredor Logístico Integrado De Nacala SA
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