ICBC provides $300 million loan in 2017 to shore up Pakistan’s foreign exchange reserves (Linked to Project ID#54158 and #54159)
Commitment amount
$ 345701447.1062921
Adjusted commitment amount
$ 345701447.12
Constant 2021 USD
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
Pakistan
Sector
General budget support (Code: 510)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On January 17, 2017, the Industrial and Commercial Bank of China (ICBC) and the State Bank of Pakistan signed a $300 million loan (facility) agreement to shore up Pakistan’s foreign exchange reserves and improve macroeconomic conditions. The loan carried the following borrowing terms: an interest rate of 3-month LIBOR (1.263%) plus a 2.75% margin, no grace period, and a 2-year maturity period. The loan fully disbursed.
Additional details
1. The loan was ‘closed’ on January 31, 2017; however it is unknown when the loan was disbursed. 2. Two other facility agreements were signed with Chinese banks in 2017 to help Pakistan with its balance of payments (as captured via Project ID#54158 and #54159). 3. The all-in interest rate was calculated by adding 2.75% to the 3-month LIBOR rate in January 2017 (1.263%).
Number of official sources
9
Number of total sources
13
Details
Cofinanced
No
Direct receiving agencies [Type]
State Bank of Pakistan (SBP) [Government Agency]
Loan Details
Maturity
2 years
Interest rate
4.013%
Grace period
0 years
Grant element (OECD Grant-Equiv)
2.6825%