ICBC provides $300 million loan to shore up Pakistan’s foreign exchange reserves (Linked to Project ID#57695)
Commitment amount
$ 337069383.6786418
Adjusted commitment amount
$ 337069383.68
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
Description
On March 25, 2019, the Industrial and Commercial Bank of China (ICBC) and the State Bank of Pakistan signed a $300 million facility (loan) agreement to shore up the country’s foreign exchange reserves. The loan carried the following terms: a 2-year maturity (final maturity date: March 27, 2021) and an interest rate of 6-month LIBOR plus a 2.75% margin. The ICBC loan, which is captured via Project ID#57696, fully disbursed and was issued alongside an RMB 15 billion ($2.24 billion) loan from China Development Bank to the State Bank of Pakistan for the same purpose (captured via Project ID#57695).
Additional details
1. The Economic Affairs Division (EAD) within Pakistan’s Ministry of Finance identifies the purpose of this loan as balance of payments (BOP) support. 2. The all-in interest rate was calculated by adding 2.5% to the 6-month LIBOR rate in March 2019 (2.318%)
Number of official sources
7
Number of total sources
9
Details
Cofinanced
No
Direct receiving agencies [Type]
State Bank of Pakistan (SBP) [Government Agency]
Implementing agencies [Type]
State Bank of Pakistan (SBP) [Government Agency]
Loan Details
Maturity
2 years
Interest rate
4.818%
Grant element (OECD Grant-Equiv)
1.9297%