Overview

ICBC provides $300 million loan in 2017 to shore up Pakistan’s foreign exchange reserves (Linked to Record ID#54158 and #54159)

Commitments (Constant USD, 2023)$319,237,914

Commitment Year•2017Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•General Budget SupportFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 17, 2017

First repayment: Jan 17, 2019

Last repayment: Jan 17, 2019

Geospatial footprint

Map overview

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ICBC provides $300 million loan in 2017 to shore up Pakistan’s foreign exchange reserves. More detailed locational information can be found at: https://www.openstreetmap.org/way/758630714

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 Commercial Banks

Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Government Agencies

State Bank of Pakistan (SBP)

Loan desecription

ICBC provides $300 million loan in 2017 to shore up Pakistan’s foreign exchange reserves

Grace period•2 yearsGrant element•10.6441%Interest rate (t₀)•3.77483%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•2 years

Narrative

Full Description

Project narrative

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, a 2-year grace period, and a 2-year maturity period. The loan fully disbursed.

Staff comments

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 Record 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%).