CDB, ICBC, and Bank of China participate in $200 million syndicated loan tranche to TDB for debt refinancing purposes in October 2018 (Linked to Project ID#92299, #92301, #92305, #66947, and #92306)

On October 2, 2018, the Southern African Trade and Development Bank (TDB) signed a $460 million syndicated loan facility agreement with a group of banks for debt refinancing purposes. The loan consisted of two tranches: a $200 million tranche with a 2-year maturity and an interest rate of LIBOR plus a 1.2% margin and a $260 million tranche with a 3-year maturity and an interest rate of LIBOR plus a 1.4% margin. This project captures ICBC's contribution to the $200 million loan tranche. BOC's contribution to the $200 million loan tranche is captured via Project ID#92299. CDB's contribution to the $200 million loan tranche is captured via Project ID#92301. BOC's contribution to the $260 million loan tranche is captured via Project ID#92305. ICBC's contribution to the $260 million loan tranche is captured via Project ID#66947. CDB's contribution to the $260 million loan tranche is captured via Project ID#92306. Participants in the lending syndicate included Citigroup, Commerzbank, Emirates NBD, First Abu Dhabi Bank, Industrial & Commercial Bank of China, Mashreqbank, Mizuho, MUFG, Standard Chartered, Sumitomo Mitsui Financial Group, Bank of China, and China Development Bank. Standard Chartered acted as Documentation Agent and Citigroup acted as Facility Agent. The proceeds of the loan were to be used by the borrower to refinance a $400 million syndicated term loan that TDB contracted on October 5, 2016 (see Project ID#91931).

Additional details

1. This loan is not included in the Chinese Loans to Africa Database developed by SAIS-CARI and maintained by the Global Development Policy Center at Boston University. 2. The Chinese government is the largest shareholder in Eastern and Southern African Trade and Development Bank (formerly known as PTA Bank), with a 9.3% shareholding. 3. The precise size of the contributions of ICBC, Bank of China, and China Development Bank to the loan syndicate are unknown. For the time being, AidData assumes equal contributions to the $260 million loan tranche ($21,666,666) and the $200 million loan tranche ($16,666,666) across the 12 known participants in the loan syndicate. 4. For the time being, AidData assumes that all lenders participated in both tranches. This issue warrants further investigation. 5. AidData has estimated the all-in interest rate for the $260 million tranche by adding 1.4% to average 6-month LIBOR in October 2018 (2.687%). AidData has estimated the all-in interest rate for the $200 million tranche by adding 1.2% to average 6-month LIBOR in October 2018 (2.687%)

Number of official sources

7

Number of total sources

9