China Eximbank signs $600 million oil-backed loan framework agreement for infrastructure projects (Linked to Record ID#60219, ID#59273)

China Eximbank signs $600 million oil-backed loan framework agreement for infrastructure projects On March 29, 2013, China Eximbank and the Republic of Congo signed a $600 million loan framework agreement — also known in the Republic of Congo as the “strategic partnership 3” (“partenariat stratégique 3”) — that allowed the Republic of Congo to obtain China Eximbank loans for infrastructure projects through a securitization mechanism: Société Nationales des Pétroles Congolais (SNPC)—the country’s state-owned oil company—agreed to deposit a portion of the cash proceeds from its oil exports into an escrow account that is controlled by China Eximbank.

The borrower was required to keep a minimum deposit balance of 15-20% of total outstanding loans in an escrow account.

This oil-backed loan framework agreement was effectively an extension of two previously signed oil-backed loan framework agreements (captured in Record ID#60219 and Record ID#59273). 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.