China Eximbank restructures $12.1 million for Sino-Zimbabwe Cement Plant Project via maturity extension and interest rate reduction (Linked to Record ID#66956)

In 1997, the Export-Import Bank of China provided a $12.1 million loan to the Government of Zimbabwe’s Industrial Development Commission (IDC) for the Sino-Zimbabwe Cement Plant Project (see Record ID#66956).

IDC, in turn, used the proceeds of this loan to on-lend to Sino-Zimbabwe Cement Company, which is a joint venture of China Building Material Industrial Corporation for Foreign Economic and Technical Cooperation (a Chinese state-owned company) and IDC.

IDC holds a 35% equity stake and China Building Material Industrial Corporation for Foreign Economic and Technical Cooperation holds a 65% equity stake in the Sino-Zimbabwe Cement Company. In October 2004, China Eximbank signed a debt restructuring agreement with the Ministry of Finance in Harare. This agreement reduced the interest rate from 4% to 2% and extended the maturity period from 13-years to 20-years.

There are signs the loan underperformed even after the restructuring. According to IDCZ's 2019 annual report, "the tenure of this loan ended in 2017 but the loan was not paid."