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Overview

China Development Bank provides JMD $887,524,000 loan to the Development Bank of Jamaica for on-lending purposes

Commitments (Constant USD, 2023)$13,940,107
Commitment Year•2009Country of Activity•JamaicaDirect Recipient Country of Incorporation•JamaicaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 12, 2009
Start (actual)
Feb 12, 2009
First repayment (originally scheduled)
Jan 1, 2010
Last repayment (originally scheduled)
Dec 31, 2013

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

  • Development Bank of Jamaica Limited (DBJ)

Implementing agencies

State-owned Banks

  • Development Bank of Jamaica Limited (DBJ)

Loan desecription

China Development Bank provides JMD $887,524,000 loan to the Development Bank of Jamaica for on-lending purposes

Grace period•1 yearsInterest type•Variable Interest RateLoan tenor•6-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On February 12, 2009, the Chinese Government and the Government of Jamaica signed a set of agreements to facilitate expansion of technical and economic cooperation, which included a $10 million loan agreement between the Development Bank of Jamaica (DBJ) and China Development Bank (CDB). According to DBJ annual reports, CDB provided a JMD $887,524,000 loan to the DBJ in 2009 for on-lending to projects that involved the purchase of goods and services from China. The loan carried the following terms: a maturity of 5 years, a grace period of 1 year, and an annual interest rate of 6-month LIBOR plus 310 basis points. Repayment of the loan commenced on October 19, 2010. This loan was repaid in full by April 2014.

Staff comments

1. This CDB loan agreement was signed at the same time as the agreements captured via Record ID#39981 #39778 #39781. 2. The 6-Month LIBOR rate is not identified in any of the underlying sources, so AidData used average 6-Month LIBOR from 2009 (1.100%) to calculate the all-in interest rate (1.10% + 3.10% = 4.20%). 3. The Development Bank of Jamaica is a corporation wholly owned by the Government of Jamaica and is mandated to foster economic growth and development of strategic sectors of the Jamaican economy. 4. The China-Latin America Finance Database, which is co-produced by the Inter-American Dialogue and Boston University’s Global Development Policy Center, identifies the face value of this CDB loan as $20 million. AidData relies on the official figure (JMD 887,524,000) that is reported in the DBJ annual reports, which is equivalent to approximately $10 million.