Overview

Bank of Communications provides BRL 100 million loan to Terminal de Contêineres de Paranaguá (TCP) Participações S.A. for unspecified purposes in 2022

Commitments (Constant USD, 2023)$18,276,966

Commitment Year•2022Country of Activity•BrazilDirect Recipient Country of Incorporation•BrazilOverseas Jurisdiction•BrazilSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 22, 2022

Last repayment (originally scheduled): Apr 22, 2023

Geospatial footprint

Map overview

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This project's loan supported Terminal de Contêineres de Paranaguá (TCP) Participações S.A., which is responsible for Brazil’s port of Paranaguá. More detailed locational information can be found at https://www.openstreetmap.org/relation/11490429.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

Banco BOCOM BBM S.A.

Receiving agencies

Joint Venture/Special Purpose Vehicles

Terminal de Contêineres de Paranaguá (TCP) Participações S.A.

Loan description

Bank of Communications provides BRL 100 million loan to Terminal de Contêineres de Paranaguá (TCP) Participações S.A. for unspecified purposes in 2022

Grant element•0%Interest rate (t₀)•11.89%Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On April 22, 2022, Banco BOCOM BBM S.A. signed a BRL 100,000,000 loan agreement with Terminal de Contêineres de Paranaguá (TCP) Participações S.A. — a special purpose vehicle and wholly-owned subsidiary of Kong Rise Development Limited that is responsible for Brazil’s port of Paranaguá — for unspecified purposes. The loan carried a 1-year maturity and an annual interest rate of CDI plus a 1.25% margin. The other borrowing terms of the loan are unknown. The loan was repaid in full on April 18, 2023.

Staff comments

1. On January 15, 2020, China-Portugal Cooperation Development Fund (managed by China-Africa Development Fund) and China-LAC Cooperation Fund (managed by the Investment Arm of The Export-Import Bank Of China) — completed the acquisition of a 22.55% ownership stake in TCP Participações S.A. from China Merchants Port Holdings Company Limited. At the time, TCP Participações S.A. reported its enterprise value as $1.1 billion. After the completion of this transaction, Kong Rise Development Limited’s shareholding in TCP Participações S.A. was changed from 90% to 100%. 2. Banco BOCOM BBM S.A. is a Brazilian financial institution controlled by Bank of Communications, which owns 80% of its equity. 3. AidData has estimated the loan's all-in interest rate -- at the time it was issued -- by adding 1.25% to average CDI in April 2022 (10.64%).