ICBC contributes to $970 million syndicated loan to Petroecuador (Linked to Record ID#91614)

📋 Staff Comments

1. The $970 million syndicated loan agreement, which was signed on January 22, 2016, is not available in its entirety. However, the Oil Sales and Purchase Contract, which was signed PetroEcuador and PetroChina on January 22, 2016, can be accessed in its entirety via https://sistemasinternos.eppetroecuador.ec:8301/rcp/GCIComercial/invitaciones/contrato/CONTRATO_2016050/Contrato2016050.pdf and https://web.archive.org/web/20220209230400/https://sistemasinternos.eppetroecuador.ec:8301/rcp/GCIComercial/invitaciones/contrato/CONTRATO_2016050/Contrato2016050.pdf and https://www.dropbox.com/scl/fi/xagxrdryn6fzfotainldp/145112.pdf?rlkey=nbg6bd93x3369nin1oujj5al3&st=g8ytwuya&dl=02. The individual financial contributions of ICBC Shanghai Pilot Free Trade Zone Branch, Industrial and Commercial Bank of China Limited (ICBC), the Export-Import Bank of China to the syndicated loan are unknown. For the time being, AidData assumes equal financial contributions ($161,666,666) by the 6 known members of the loan syndicate. The transaction amount for ICBC is recorded as $323,333,333, as ICBC Shanghai Pilot Free Trade Zone Branch and Industrial and Commercial Bank of China Limited (ICBC) are two separate members of the loan syndicate. This issue warrants further investigation.
2. 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.
3. The loan's grace period (1.666-years) was identified by the Government of Ecuador in its voluntary reporting to the World Bank's Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/3kudju43fsqotur07mcm2/Private-Chinese-Loans-to-Ecuador-November-2023-DRS-Data-Extraction.xlsx?rlkey=p9dhihhvvnz66hhlvecf8qhas&dl=05. The Ecuadorian Ministry of Finance loan identification number is 28096000.

📚 Sources & References

• 2016050 Agreements executed on January 22, 2016, 2017 Bond Prospectus, 2019 Bond Prospectus Government of Ecuador, 2019 Bond Prospectus Government of Ecuador
• Are China’s Loans to Ecuador a Good Deal? The Case of the Sopladora Hydro Project
• Boletín de Ejecución Presupuestaria Enero - Marzo 2016
• BUILDING DEVELOPMENT FOR A NEW ERA: CHINA’S INFRASTRUCTURE PROJECTS IN LATIN AMERICA AND THE CARIBBEAN
• Building Development for a New Era: China’s Infrastructure Projects in Latin America and the Caribbean
• Comunicando Resolución No. DIR-EPP-28-2017-12-28
• Deals – February 3, 2016
• Ecuador comprometió ventas de crudo con China hasta el 2024
• Ecuador firma con ICBC de China crédito por US$970 millones
• Ecuador no ha suscrito nuevos contratos de preventa petrolera
• Ecuador returns to finance with China after eleven months
• Ecuador
• China's ICBC sign $970 mln credit line
• Invitation Memorandum THE REPUBLIC OF ECUADOR Solicitation of Consents to Certain Amendments to the Bonds of the Republic of Ecuador listed below (collectively, the “Eligible Bonds”) and Invitation to Exchange Eligible Bonds for New Securities of the Republic of Ecuador (the “New Securities”)
• Memorandum No. 0047: Communicating Resolution No. DIR-EPP-28-2017-12-28
• Official Registry: Year III No. 703
• PetroEcuador firma crédito por USD 970 millones con el ICBC
• REPORT DNA3-0007-2018 MINISTRY OF FINANCE NATIONAL DIRECTORATE OF AUDIT OF PUBLIC DEBT AND FINANCES INFORME, Último crédito chino compromete venta de petróleo por cinco años Este contenido ha sido publicado originalmente por EL COMERCIO. Si vas a hacer uso del mismo, por favor, cita la fuente y haz un enlace hacia la nota original en la dirección: https://www.elcomercio.com/actualidad/negocios/credito-chino-compromete-venta-petroleo.html 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.