Loading grant details…
NORINCO provides $6.2 million supplier credit to Hwange Colliery Company for the acquisition of mining equipment (Linked to Record ID#72970)
| Funder | China North Industries Group Corporation Limited (NORINCO Group) |
|---|---|
| Recipient Organization | Hwange Colliery Co., Ltd. |
| Country | Zimbabwe |
| Start Date | Mar 01, 2006 |
| End Date | Sep 17, 2032 |
| Duration | 9,697 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 62117 |
Grant Description
NORINCO provides $6.2 million supplier credit to Hwange Colliery Company for the acquisition of mining equipment In March 2006, China North Industries Group Corporation Limited (NORINCO) — a Chinese state-owned enterprise — provided a $6.2 million supplier credit to Hwange Colliery Company for the acquisition of mining equipment (specifically, haulage trucks and earth moving equipment).
The loan, which is captured via Record ID#62117, carried the following borrowing terms: an interest rate of LIBOR plus a 1% margin, a maturity of 2.84-years (originally scheduled maturity date: December 31, 2008), and a grace period of 1-year.
It was originally scheduled for repayment in eight equal quarterly payments, starting on March 2007 and ending on December 31, 2008.
NORINCO reportedly allowed the borrower to repay the loan through the sale of coal and coke to NORINCO, which in turn used the coal and coke to support its smelters in the Democratic Republic of the Congo.
The borrower failed to honor its obligations -- under the original loan agreement -- to make scheduled payments to the lender worth $4,802,563 in 2008, $4,408,408 in 2009, and $4,502,065 in 2010.
The loan was in principal arrears by the time it reached its originally scheduled maturity date (December 31, 2008) and remained in principal arrears during 2009 and 2010.
Then, a rescheduling of the outstanding debt obligations of Hwange Colliery Company (worth $6.3 million) took place in November 2010, which extended the loan’s final maturity date until December 31, 2013. The loan was rescheduled for repayment in 36 monthly installments between January 31, 2011 and December 31, 2013.
Interest on the rescheduled loan was charged at LIBOR plus a 1% margin x 1.5 on delayed installment payments. Record ID#72970 captures the rescheduling of the loan.
Then, the borrower failed to honor its obligations -- under the rescheduling agreement -- to make scheduled payments to the lender worth $1,369,469 in 2011 and $1,369,469 in 2012.
Staff Comments
1. 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
- Hwange Colliery Company Limited Annual Report 2008
- Does China have a geoeconomic strategy towards Zimbabwe? The case of the Zimbabwean natural resource sector
- Hwange in barter deal with Chinese
- Zimbabwe: China to Hwange Rescue
- Hwange Colliery
- China to Hwange Rescue
- New gear doubles output of Zimbabwe coal giant
- Hwange Colliery Company Limited Annual Report 2012
- Chinese economic protectorate
- Hwange Colliery Company Limited Annual Report 2011
- Hwange Colliery Company Limited Annual Report 2010
- Hwange Eighty-Fourth Annual Report
- Hwange Colliery Company Limited 2009 Annual Report
- Hwange Colliery Company Limited 2008 Annual Report 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
Hwange Colliery Co., Ltd.
Interested in applying for this grant?
Complete our application form to express your interest and we'll guide you through the process.
Apply for This GrantQuick Summary
Related Grants
