CDB provides $200 million loan to NBE for investment projects and SMEs (Linked to Project ID#30705 and ID#58774)
Commitment amount
$ 234824711.58516902
Adjusted commitment amount
$ 234824711.59
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Egypt
Sector
Business and other services (Code: 250)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Description
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.
Additional details
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%.
Number of official sources
4
Number of total sources
17
Details
Cofinanced
No
Direct receiving agencies [Type]
National Bank of Egypt [State-owned Bank]
Implementing agencies [Type]
National Bank of Egypt [State-owned Bank]
Loan Details
Maturity
8 years
Interest rate
4.468%
Grace period
3 years
Grant element (OECD Grant-Equiv)
10.7598%