EIB and China Eximbank back Greece port expansion

12 November 2019 - 12:00 am UTC

The European Investment Bank has agreed to provide a EUR 140m (USD 154m) loan for Chinese shipping group COSCO’s plans to upgrade the Port of Piraeus in Greece.

China Eximbank will guarantee the loan, after signing an agreement yesterday with the Piraeus Port Authority – controlled by COSCO – on a portfolio of projects related to the port.

This is the first time that COSCO has secured long-term project financing from a major European development finance institution, a company spokesperson told Inframation. The loan will support part of the EUR 600m port expansion, the spokesperson said, declining to elaborate on other financiers the developer is tapping.  

The 20-year loan is the largest ever credit facility backing the Greek port development that has been granted by a long-term lending institution in Europe, according to a Port of Piraeus statement.

The first EUR 100m tranche of the EIB loan, secured by a EUR 105m China Eximbank guarantee, was signed yesterday in Athens in the presence of Greek Prime Minister Kyriakos Mitsotakis and Chinese President Xi Jinping. The remaining loan tranche will be finalised as construction progresses.

 

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