China Construction Bank contributes $26 million to $1 billion syndicated loan to South African Reserve Bank (Linked to Record ID#72436, #72468, #72435,#72472, #72493)

Project narrative

On June 16, 2003, the South African Reserve Bank signed a $1 billion loan facility agreement with a syndicate of banks. The syndicate include had 3 different types of lenders who 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 and China Construction Bank each committed $26 million. The loan had a 3 year maturity and an interest rate of 1.798% (average 3-month LIBOR in June 2003 + 67.5 basis points = 1.123% + 0.675% = 1.798%). The borrower was able to draw down on the loan in USD and/or Euro. $500 million of the loan proceeds were to be used by the borrower to repay a maturing $500 million gold-denominated term loan facility and the balance of the proceeds were to be added to the foreign reserves of the South African Reserve Bank. This project captures China Construction Bank’s contribution to the loan syndicate. Record ID#72468 captures Bank of China’s contribution to the loan syndicate. Record ID#72435 and #72436 capture a syndicated loan used to repay this loan.