China Eximbank provides buyer’s credit loan for Malabo National Park Construction Project (Linked to Record ID#484)

China Eximbank provides buyer’s credit loan for Malabo National Park Construction Project On November 16, 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion buyer’s credit facility agreement (互惠贷款) for various infrastructure projects.

The subsidiary buyer's credit loans under the $2 billion facility were secured with (i.e. collateralized against) minimum cash balances in an escrow account opened by Government of Equatorial Guinea in China Eximbank.

Under the original terms of an Account Settlement and Financing Agreement (Convenio de Liquidacion de cuentas y Financiamiento) that the parties signed on February 17, 2006, the minimum cash balance requirement was reportedly equivalent to 30 percent of the Government of Equatorial Guinea's outstanding stock of debt to China Eximbank.

After the Account Settlement and Financing Agreement was amended on March 26, 2010, the borrower was expected -- at any given point in time -- to maintain a minimum cash balance in the escrow account (also known as 赤道几内亚共和国财务预算部) equivalent to the value of its next set of semi-annual principal, interest, and fee payment obligations to the lender.

The borrower was also expected to deposit the cash proceeds from its oil export sales (crude oil sales revenue) to China into a payment reserve account (also known as 还款准备金 or 赤道几内亚共和国财务预算部还款准备金).

More specifically, the borrower was expected to deposit the cash proceeds from six oil cargoes into the payment reserve account.

In 2011, China Eximbank and the Government of Equatorial Guinea signed a subsidiary buyer’s credit loan agreement for Malabo National Park Construction Project. The face value of this loan is unknown.

The proceeds of the loan were used to partially finance a $78,122,400 (RMB 516 million) commercial contract with China Road and Bridge Engineering Co., Ltd.

Malabo National Park covers approximately 870,000 square meters of land and is a comprehensive urban park integrating natural landscape, leisure and entertainment, sports and education. It is the first comprehensive urban park in Central Africa.

It includes a Science Popularization and Display Zone, a Friendship Park Zone, a Sports and Recreation Zone, the Tour Tower, and a Forest Protection Zone. Entry is 500 FCFA for adults and 250 FCFA for children. China Road and Bridge Engineering Co., Ltd. was the EPC contractor responsible for project implementation.

Construction began in October 2011 and ended in October 2015. A grand opening ceremony was held on June 4, 2016.