Government Related Loan Agreements

China Investment Research Volume 24 China Outbound Investments Q4 2014

This quarter there were 14 Government Related Loan Agreements - separate from the much broader Government Agreements – totaling USD 5.8 billion aggregate value. This amount represents a 7% decrease in volume but a USD 2.5 billion increase in aggregate value from Q3. There were 5 loans each over USD 500 million as set out on page 17 (for subscription clients). All 14 of these loans were to emerging markets based borrowers.

The largest Loan Agreement in Q4 did not involve any new loan, but rather a restructuring of existing credit facilities previously granted by CDB to PdV, Venezuela's state owned oil company. PdV's 2013 oil revenues declined by USD 11 billion to USD 113 billion and expected to be only USD 98 billion in 2014. In the current oil pricing environment, further revenue declines are also likely in 2015.

The newly negotiated oil-backed loan agreement between China and Venezuela marks the first debt restructuring deal that Venezuela's Government has signed with a major creditor.

China Investment Research Volume 23 China Outbound Investments Q3 2014

There were 6 Government Related Loans (not related to Government Agreements) in Q3 representing USD3.4bn aggregate value. This amount represents a 62% decrease in aggregate value from Q2 2014. There were 19 additional Government Related Loans that were part of the much larger and more comprehensive Government Agreements.

China Investment Research Volume 22 China Outbound Investments Q2 2014

There were 14 Government Related Loans (with disclosed values) in Q2 representing USD 8.7bn aggregate value. This represented a 121% increase in aggregate value, while volume increased by 27%.

The largest loan, to Kenya for a railway extension, represented 41% of aggregate value. Two significant loans to the Greek shipping industry represented 33% of aggregate value. There was also a sizeable infrastructure credit facility and a loan framework agreement signed with Russia’s Vnesheconombank, and a sizable infrastructure loan to the Government of Cameroon.

China Investment Research Volume 21 China Outbound Investments Q1 2014

There were 11 Government Loan Agreements in Q1, only three of which were over USD 600m (Sri Lanka, Germany and Kazakhstan). All these loans were focussed on energy and infrastructure, except in Germany, which was related to loans to German shipping firms to acquire Chinese ships.