Skip to content
AidData logo

Overview

China Eximbank participates in $650 million syndicated loan with Pakistan’s Ministry of Finance in June 2017 to shore up foreign exchange reserves

Commitments (Constant USD, 2023)$69,168,215
Commitment Year•2017Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•General Budget SupportFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 7, 2017
Start (actual)
Jun 7, 2017
End (planned)
Dec 6, 2018
Last repayment (originally scheduled)
Dec 6, 2018

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% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

  • Credit Suisse AG
  • Habib Bank Limited (HBL)
  • United Bank Limited (UBL)

State-owned Banks

  • Emirates NBD Bank P.J.S.C.
  • First Abu Dhabi Bank PJSC (FAB)

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Government Agencies

  • Government of Pakistan

Loan description

China Eximbank and ICBC contribution to $650 million syndicated loan with Pakistan’s Ministry of Finance in 2017

Grant element•4.4%Interest rate (t₀)•3.41406%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•1.5 years

Narrative

Full Description

Project narrative

On June 7, 2017, Pakistan’s Ministry of Finance signed a $650 million syndicated loan agreement with 10 banks, including Emirates NBD, Credit Suisse, the Export-Import Bank of China, First Abu Dhabi Bank, Habib Bank, the Industrial and Commercial Bank of China (ICBC), and United Bank. The loan carried a 1.5-year maturity and an interest rate of LIBOR plus a 2% margin. The borrower was expected to use the proceeds of the loan to shore up the country’s official foreign exchange reserves.

Staff comments

1. The exact monetary value of China Eximbank’s contribution to the syndicated loan is unknown. For the time being, AidData assumes equal contributions ($65 million) across the ten known members of the syndicate. This issue warrants further investigation. 2. AidData has estimated the all-in interest rate by adding 2% to average 6-month LIBOR in June 2017 (1.43228%). 3. One source (https://www.dropbox.com/scl/fi/jg6inc3i389sb1qvf75pc/Pakistan-Sri-Lanka-fuel-sovereign-loan-push.pdf?rlkey=9tkpo1tbjtpiajxnzfv3s2rfk&dl=0) indicates that 13 banks and 4 Chinese banks (including Bank of Zhengzhou) participated in the syndicate. This issue warrants further investigation. 4. The Government of Pakistan loan identification number is SUISSE-2017. 5. The loan was scheduled to mature in December 2018. However, no official source has yet been identified confirming full repayment. Pending further evidence, project status remains coded as Implementation.