Overview

China Development Bank provides $140 million loan to Bank of Ceylon for on-lending activities in 2020

Commitments (Constant USD, 2023)$144,442,735

Commitment Year•2020Country of Activity•Sri LankaDirect Recipient Country of Incorporation•Sri LankaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jun 30, 2020

First repayment (originally scheduled): Jun 30, 2021

Last repayment (originally scheduled): Jun 30, 2023

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

Bank of Ceylon (BOC)

Loan description

China Development Bank provides $140 million loan to Bank of Ceylon for on-lending activities in 2020

Grace period•1 yearsInterest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On June 30, 2020, the Guangxi Branch of China Development Bank (CDB) signed a long-term $140 million USD facility (loan) agreement with the Bank of Ceylon (BOC) to support on-lending activities. This credit line facility carried a maturity period of three years and a grace period of one year. The loan was to be disbursed via two, $70 million USD tranches. The proceeds of the loan were to be used by the borrower to provide support needed during Sri Lanka’s fight against COVID-19; specifically, the facility was intended to supplement BOC's general lending requirements, allowing it to support businesses affected by the COVID-19 pandemic, namely in the small and medium enterprises (SME) sector associated with exports, fishing, logistics, transport, agriculture, and manufacturing.

Staff comments

1. Bank of Ceylon is a 100% state-owned commercial bank in Sri Lanka.