Bank of China contributes to Tranche B of $1.5 billion syndicated loan to South African Reserve Bank to facilitate prepayment of another loan (Linked to Project ID#72435, #72470, #72468, #72472, #72493)
Commitment amount
$ 13021400.097684896
Adjusted commitment amount
$ 13021400.1
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
South Africa
Sector
Banking and financial services (Code: 240)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
On July 17, 2005, the South African Reserve Bank (SARB) announced the conclusion of a $1.5 billion syndicated loan agreement with a syndicate of 33 banks and financial institutions, including Bank of China. The purpose of the ‘dual-term’ loan was to finance the prepayment of a $1 billion Dual Currency Term Loan Facility dated 16 June 2003 (see Project ID #72468 and #72470) and Tranche B of a Dual Currency Term Loan Facility dated 9 July 2002 (see Project ID #72472 and #72493). The 24 Mandated Lead Arrangers were scaled down to a pre-syndication initial commitment of $62.5 million each, while the four Co-Arrangers initially committed $30 million each and the five Lead Managers initially committed $15 million each. The transaction was launched for general syndication on June 14, 2005. At the time, the SARB decided not to take up the excess funds offered and final participation levels for all investors were therefore scaled back. The final allocations were scaled back to $56 million for Mandated Lead Arrangers, $24 million for Co-Arrangers and $12 million for Lead Managers. As a Co-Arranger, the final commitment from the Bank of China was $24 million. The distribution of commitments across the two tranches can be calculated for each type of syndicate member: the Bank of China provided $18 million for Tranche A (captured via Project ID #72435) and $6 million for Tranche B (captured via Project ID#72436). Tranche A ($1 billion) had a three-year maturity and an interest rate of 3.838% (average 3-month LIBOR in July 2005 + 22.5 basis points = 3.613% + .225% = 3.838%). Tranche B ($500 million) had a five-year maturity and an interest rate of 3.913% (average 3-month LIBOR in July 2005 + 30 basis points = 3.613% + .3% = 3.913%). The borrower was able to draw down on these two tranches in USD and/or Euro.
Number of official sources
3
Number of total sources
3
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Barclays Bank Plc [Private Sector]
Bayerische Hypo- und Vereinsbank AG [Private Sector]
BNP Paribas S.A. [Private Sector]
Calyon [Private Sector]
Citigroup [Private Sector]
Deutsche Bank [Private Sector]
Dresdner Kleinwort [Private Sector]
HSBC (Hong Kong and Shanghai Banking Corporation) [Private Sector]
JPMorgan Chase & Co. [Private Sector]
Mizuho Bank [Private Sector]
Natexis Banques Populaires [Private Sector]
RMB Holdings Ltd. (RMBH) [Private Sector]
Societe Generale Corporate and Investment Banking (SGCIB) [Private Sector]
Standard Bank of South Africa Ltd. [Private Sector]
Sumitomo Mitsui Banking Corporation Europe Limited [Private Sector]
UBS AG [Private Sector]
UFJ Bank [Private Sector]
Bank of Montreal Europe plc [Private Sector]
Lloyds Bank [Private Sector]
Fortis Bank [Private Sector]
Goldman Sachs Bank USA [Private Sector]
Banque Internationale Des Mascareignes [Private Sector]
WestLB AG [State-owned Bank]
The Bank of Tokyo-Mitsubishi, Ltd. (BTM) [Private Sector]
Standard Chartered Bank PLC [Private Sector]
Bank of New York [Private Sector]
Commerzbank Aktiengesellschaft [Private Sector]
ING Bank N.V. [Private Sector]
ABN AMRO Bank [Private Sector]
Bayerische Landesbank (BayernLB) [State-owned Bank]
Erste Group Bank AG (Erste Group) [Private Sector]
Hamburg Commercial Bank (HSOB) (Formerly HSH Nordbank AG) [State-owned Bank]
Direct receiving agencies [Type]
South African Reserve Bank (SARB) [Government Agency]
Implementing agencies [Type]
South African Reserve Bank (SARB) [Government Agency]
Loan Details
Maturity
5 years
Interest rate
3.913%
Grant element (OECD Grant-Equiv)
4.4603%