CDB provides $700 million loan to NBE for infrastructure projects (Linked to Project ID#52881)
Commitment amount
$ 826563155.8509271
Adjusted commitment amount
$ 826563155.85
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Egypt
Sector
Other multisector (Code: 430)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
On January 23, 2016, China Development Bank and the National Bank of Egypt (NBE) — a commercial bank that is wholly owned by the Government of Egypt — signed a $700 million term loan agreement to finance electricity, energy, telecommunications, agriculture, and other infrastructure projects in Egypt. The agreement was signed by the Chairman of the National Bank of Egypt (NBE), Hisham Okasha, and the Chairman of China Development Bank (CDB), Hu Huaibang. The signing ceremony in Cairo was attended by Egyptian President Abdel Fattah El-Sisi, Chinese President Xi Jingping, and the governor of Egypt’s Central Bank, Tarek Amer. The loan was provided on the following terms: an 11-year maturity, a 3-year grace period, and an annual interest rate of 6-month LIBOR (0.936% in January 2016) plus a 3.75% margin. According to CDB, the CDB Qingdao Branch and the CDB Cairo Representative Office organized a $525 million disbursement shortly after the loan was signed. Then, in March 2016, NBE’s deputy director, Mahmoud Montasser, confirmed that CDB had fully disbursed the $700 million loan.
Additional details
1. AidData has recorded intent of this project as 'development' in light of the fact that the purpose of the loan is to fund development and infrastructure projects in Egypt.
Number of official sources
5
Number of total sources
16
Details
Cofinanced
No
Direct receiving agencies [Type]
National Bank of Egypt [State-owned Bank]
Loan Details
Maturity
11 years
Interest rate
4.686%
Grace period
3 years
Grant element (OECD Grant-Equiv)
11.7624%