Loan
A Chinese firm, Shenyang International Economic and Technical Cooperation Limited (CSYIC), has secured a $42.5m loan, under the Chinese Credit Insurance Corporation (SINOSURE), for the construction of duplex houses, roads and other ancillary facilities at Enugu’s Heliu Residences Project on the Enugu-Port Harcourt expressway.
It was gathered that the funds were secured from China’s biggest bank, the Industrial and Commercial Bank of China (ICBC), and was about the largest investment by any Chinese firm in the state.
This was disclosed by Chief Loretta Aniagolu, Managing Partner of FIT Consult, whose organisation is developing the Heliu Residences Project in partnership with the Enugu State government, during signing of the contract with officials of the CSYIC in Enugu, at the weekend.
She explained that the visit of the Chinese team led by the CSYIC President, Madam Tang Lezhen has resulted in the final signing of documents with FIT Consult, in respect of financing of the contract.
“We wanted to bring the project with our own funds to a certain level before the Chinese come in, so that they don’t start from scratch and also, for them to know that we are very serious. We have finally tied up everything on this visit,” she said.
Aniagolu threw more light on the funding of the new housing project saying: “The bank funding for the project is from China, through the Industrial and Commercial Bank of China (ICBC) which is the biggest bank in the world, with its 2016 turnover at about $2.3tr. The entire transaction of $42.5m is being guaranteed locally by Access Bank Plc.”
According to her, the interest rate is four per cent, while the period for repayment of the loan is eight years. “Two years moratorium for construction of the projects and six years for the repayment. So, it is a fantastic arrangement,” she said.So far, over N2b has been spent on various aspects of the project, such as 20 kilometers of drainage, culverts and buildings.
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