China Eximbank restructures $981 million buyer’s credit loan tranche for Meiso-Dewanle Section of the Addis Ababa–Djibouti Railway Project via maturity and grace period extensions (Linked to Record ID#30171, #70085, #70086, #70083, #85163, #61941)

On May 15, 2013, China Eximbank and the Government of Ethiopia signed a $2,490,760,000 buyer’s credit loan (BCL) agreement for the Addis Ababa–Djibouti Railway Project.

The loan was also backed by a credit insurance policy from China Export and Credit Insurance Corporation (SINOSURE). China Eximbank provided the loan in three separate loan tranches.

The first tranche is worth $1,289,029,000 (captured via Record ID#70086) and it supported the Sebeta-Adama–Meiso Section of the Addis Ababa–Djibouti Railway Project.

The second tranche is worth $981,260,000 (captured via Record ID#70085) and it supported the Meiso-Dewanle Section of the Addis Ababa–Djibouti Railway Project.

The third tranche is worth $220,471,000 (captured via Record ID#70083) and it supported the Addis Ababa–Djibouti Railway Rolling Stock Supply Project.

The borrower was expected to use the proceeds of the $1,289,029,000 China Eximbank loan tranche to finance 70% of the cost of a $1,841,470,000.00 commercial (EPC) contract between the Ethiopian Railway Corporation (ERC) and China Railway Engineering Corporation (CREC), which was signed on October 25, 2011 (and modified on November 5, 2012, February 7, 2013, and March 15, 2013) to support the construction of a 329 km Sebeta (Addis Ababa) to Miesso section of the railway.

The borrower was expected to use the proceeds of the $981,260,000 China Eximbank loan to finance 70% of the cost of a $1,401,800,000 commercial (EPC) contract between the ERC and China Civil Engineering Construction Corporation (CCECC), which was signed on December 16, 2011 (and modified on November 2, 2012, February 7, 2013 and March 8, 2013) to support the construction of a 339 km section of the railway that runs from Miesso (Meiso) to Dewelle (Dewanle) on Ethiopia's border with Djibouti.

The borrower was expected to use the proceeds of the $220,471,000 China Eximbank loan to finance approximately 85% of a $259 million commercial contract between China North Industries Corporation (NORINCO) and the ERC, which was signed in March 2013 to support the Addis Ababa–Djibouti Railway Rolling Stock Supply Project.

Then, on or around September 4, 2018, China Eximbank and the Government of Ethiopia restructured the three buyer’s credit loan agreements for the Sebeta-Adama–Meiso Section of the Addis Ababa–Djibouti Railway Project, the Meiso-Dewanle Section of the Addis Ababa–Djibouti Railway Project, and the Addis Ababa–Djibouti Railway Rolling Stock Supply Project that were signed in May 2013.

Under the terms of the restructuring agreements, the maturities of the loans were reportedly extended by an additional sixteen years (i.e., from 15-years to 31-years, or from 2028 to 2044).

Additionally, the grace period of two of the loans were reportedly extended by 5-years, including the $1.28 billion China Eximbank buyer's credit loan and the $981 million China Eximbank buyer's credit loan (i.e., from 6-years to 11-years, or from 2019 to 2024).

The the grace period of the third loan (the $220 million China Eximbank buyer's credit loan) was reportedly extended by an additional 6-years (i.e., from 6-years to 12-years, or from 2019 to 2025).

The 2018 debt rescheduling record for the $1.28 billion China Eximbank buyer’s credit loan that supported the Sebeta-Adama–Meiso Section of the Addis Ababa–Djibouti Railway Project is captured via Record ID#96154.

After the debt rescheduling agreement was finalized, the loan's first and last scheduled principal payment dates were reset to July 21, 2024 and January 21, 2044. Its first and last scheduled interest payment dates were reset to July 21, 2014 and January 21, 2044.

The 2018 debt rescheduling record for the $981 million China Eximbank buyer’s credit loan that supported the Meiso-Dewanle Section of the Addis Ababa–Djibouti Railway Project is captured via Record ID#96155.

After the debt rescheduling agreement was finalized, the loan's first and last scheduled principal payment dates were reset to July 21, 2024 and January 21, 2044. Its first and last scheduled interest payment dates were reset to July 21, 2014 and January 21, 2044.

The 2018 debt rescheduling record for the $220 million China Eximbank buyer’s credit loan that supported the Addis Ababa–Djibouti Railway Rolling Stock Supply Project is captured via Record ID#61941.

After the debt rescheduling agreement was finalized, the loan's first and last scheduled principal payment dates were reset to January 21, 2025 and July 21, 2044. Its first and last scheduled interest payment dates were reset to January 21, 2015 and January 21, 2044.