Bank of China contributes $26 million to $1 billion syndicated loan to South African Reserve Bank (Linked to #72470, #72435, #72436)
Commitment amount
$ 63337657.249841966
Adjusted commitment amount
$ 63337657.24
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
South Africa
Sector
General budget support (Code: 510)
Flow type
Loan
Level of public liability
Central government debt
Infrastructure
No
Category
Project lifecycle
Description
On June 16, 2003, a syndicate of 27 banks, including the Bank of China (BOC) and China Construction Bank (CCB), signed a $1 billion dual-currency loan facility agreement with the South African Reserve Bank (SARB). Of the total amount, $500 million of the loan proceeds were used to repay a maturing $500 million gold-denominated term loan facility and the remaining $500 million was added to the SARB foreign exchange reserves. The borrowing terms included a 3-year maturity and 1.798% interest rate (3-month LIBOR plus 67.5 basis points). The borrower was able to draw down on the $1 billion loan in USD and/or EUR. The syndicate was made up of three types of lenders that committed differing amounts. Mandated Lead Arrangers committed $47.5 million, Co-Arrangers committed $26 million, and Lead Managers commitment $14.5 million. As Co-Arrangers, Bank of China (BOC) and China Construction Bank (CCB) each committed $26 million. Project ID #72468 captures BOC's contribution. Project ID #72470 captures CCB’s contribution. On July 18, 2005, the South African Reserve Bank (SARB) borrowed another $1.5 billion to repay this $1 billion dual-currency loan facility agreement dated June, 16 2003 (see Project ID #72468 and #72470) and Tranche B of a dual-currency loan facility agreement dated July 9, 2002 (see Project ID #72472 and #72493).
Additional details
1. AidData calculated the all-in interest rate as follows: 1.123% (average 3-month LIBOR in June 2003) + 0.675% (67.5 basis points) = 1.798%
Number of official sources
3
Number of total sources
3
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Barclays Bank Plc [Private Sector]
BNP Paribas S.A. [Private Sector]
Citigroup [Private Sector]
Dresdner Kleinwort [Private Sector]
HSBC (Hong Kong and Shanghai Banking Corporation) [Private Sector]
JPMorgan Chase & Co. [Private Sector]
Mizuho Bank [Private Sector]
Standard Bank London Ltd [Private Sector]
Sumitomo Mitsui Banking Corporation Europe Limited [Private Sector]
China Construction Bank Corporation (CCB) [State-owned Commercial Bank]
Goldman Sachs Bank USA [Private Sector]
KBC Bank N.V. Dublin Branch [Private Sector]
Raiffeisen Zentralbank Osterreich AG [Private Sector]
BMO Financial Group (Bank of Montreal) [Private Sector]
N.M. Rothschild & Sons Limited [Private Sector]
WestLB AG [State-owned Bank]
The Bank of Tokyo-Mitsubishi, Ltd. (BTM) [Private Sector]
LRP Landesbank Rheinland-Pfalz [Private Sector]
Standard Chartered Bank PLC [Private Sector]
Bank of New York [Private Sector]
Commerzbank Aktiengesellschaft [Private Sector]
Crédit Agricole Group [Private Sector]
ING Bank N.V. [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
3 years
Interest rate
1.798%
Grant element (OECD Grant-Equiv)
6.9764%