Overview

CDB provides $200 million loan to NBE for investment projects and SMEs (Linked to Record ID#30705 and ID#58774)

Commitments (Constant USD, 2023)$216,763,567

Commitment Year•2012Country of Activity•EgyptDirect Recipient Country of Incorporation•EgyptSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 28, 2012

First repayment: Dec 31, 2014

Last repayment: Dec 30, 2019

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

China Development Bank (CDB)

Receiving agencies

State-owned Banks

National Bank of Egypt (S.A.E.)

Implementing agencies

State-owned Banks

National Bank of Egypt (S.A.E.)

Loan desecription

CDB provides $200 million loan to NBE for investment projects and SMEs

Grace period•3 yearsGrant element•21.7887%Interest rate (t₀)•4.46065%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•8 years

Narrative

Full Description

Project narrative

On August 28, 2012, during Egyptian President Mohammed Morsi's state visit to China, China Development Bank (CDB) and the National Bank of Egypt (NBE) — a commercial bank that is wholly owned by the Government of Egypt — signed a $200 million loan agreement to finance investment projects in Egypt as well as small and medium sized enterprises (SMEs) in Egypt. The loan was provided on the following terms: an 8-year maturity, a 3-year grace period, and an annual interest rate of 6-month LIBOR (0.718% in August 2012) plus a 3.75% margin. No information on loan disbursements could be identified.

Staff comments

1. Hong Kong Government News and and one of two reporters from Voice of America identify the $200,000,000 as a credit line rather than a soft loan. Given the loan's maturity, interest rate, and grace period, AidData assumes that the agreement does in fact refer to a loan as opposed to a credit line. 2. The loan's interest rate was calculated by finding the average USD LIBOR Overnight Rate for August 2012, .167%, and adding it to 3.75% as stipulated by the loan agreement, for a total interest rate of 3.971%.