China Development Bank extends $700 million credit line to support a variety of projects (Linked to Record ID#85162)

China Development Bank extends $700 million credit line to support a variety of projects On May 10, 2015, China Development Bank and the Development Bank of the Republic of Belarus (DBRB) — a state-owned bank in Belarus — signed a $700 million master credit agreement to support a variety of projects in transport, energy, industry, infrastructure, and SME sectors as well as projects undertaken by residents of the Great Stone Industrial Park.

The total value of each investment project supported through by a subsidiary CDB loan under this master credit agreement could not be less than $1 million. Loan maturities were based on the project payback periods and could not exceed 15-years. Grace periods were not to exceed 5-years.

Loans were to be repaid at an annual interest rate of 6-month LIBOR (equals to 0.417 % in May 2015) plus a 5.5% margin, and with a commitment fee of 0.4% and a management fee of 0.8%.

The proceeds of any subsidiary CDB loan under the master credit agreement could not be used to finance more than 85% of the total cost of a given investment project and at least 50% of the value of each subsidiary CDB loan had to be allocated to Chinese equipment, works, or services.

Fulfillment of obligations under the loan agreements could be secured by a pledge of movable and immovable property, suretyship, guarantee, insurance by the Bank of a default risk, guarantee monetary deposit, transfer to the CDB of the title to property including property rights, or other means provided by the legislation of the Republic of Belarus.

The subsidiary CDB loan agreements also contained covenants relating to the use of funds and provided China Development Bank with the right to monitor the use of credit facilities by end borrowers (i.e., DBRB's customers).

If DBRB were to breach the covenants, China Development Bank had the right to demand loan repayment and cease all disbursements under the credit facility. As of March 22, 2017, $680,270,213.87 of the $700 million facility remained undrawn. It is not known how the drawn down funds were utilized.

Record ID#66949 captures the $700 million master credit agreement as an ‘umbrella’ project and Record ID#85162 captures the total drawdown amount ($19,729,768.13).