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Overview

CDB provides $700 million loan to NBE for infrastructure projects (Linked to Record ID#52881)

Commitments (Constant USD, 2023)$763,505,101
Commitment Year•2016Country of Activity•EgyptDirect Recipient Country of Incorporation•EgyptSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 23, 2016
Start (planned)
Jan 21, 2016
End (actual)
Mar 3, 2016
First repayment (originally scheduled)
Jan 22, 2019
Last repayment (originally scheduled)
Jan 20, 2027

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.)

Loan desecription

CDB provides $700 million loan to NBE for infrastructure projects

Grace period•3 yearsGrant element•24.9248%Interest rate (t₀)•4.615%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•11 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.