China Construction Bank contributes $26.5 million to 3-year tranche of $1 billion syndicated loan to South African Reserve Bank (Linked to Project ID#72471, #72492, and #72493)
Commitment amount
$ 66235554.90309674
Adjusted commitment amount
$ 66235554.9
Constant 2021 USD
Summary
Funding agency [Type]
China Construction Bank Corporation (CCB) [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 9, 2002, the South African Reserve Bank announced that it had entered into a $1 billion loan facility agreement with a syndicate of banks. The loan was divided into two tranches: a three year tranche and a five year tranche. The syndicate had 3 types of lenders who committed differing amounts. Mandated Lead Arrangers committed $53 million, Lead Arrangers committed $32.75 million, and Arrangers committed $20 million. As an arranger, Bank of China committed $20 million of debt. These funds were divided equally between the two tranches. The first tranche, to which Bank of China committed $10 million, had a 3 year maturity and an interest rate of 2.55% (average 3-month LIBOR in July 2002 + 70 basis points = 1.850+0.7= 2.55). The second tranche, to which Bank of China committed $10 million, had a 5 year maturity and an interest rate of 2.75% (average 3-month LIBOR in July 2002 + 90 basis points = 1.850+.9= 2.75). As an arranger, China Construction Bank committed $53 million: $26.5 million to the 3 year tranche and $26.5 million to the 5 year tranche. The borrower was able to draw down on both tranches in USD and/or Euro. The proceeds of the syndicated loan were to be used by the borrower to finance the early repayment of a $1 billion syndicated loan that was contracted in 2000 and set to mature in 2003. Bank of China's contribution to the 3 year tranche is recorded in Project ID#72471. Bank of China's contribution to the 5 year tranche is recorded in Project ID#72492. China Construction Bank’s contribution to the the 3 year tranche is recorded in Project ID#72472. China Construction Bank’s contribution to the the 5 year tranche is recorded in Project ID#72493.
Additional details
1. The South African Reserve Bank reports that the funds were to be 'equally divided' between the two tranches. Therefore, it is assumed that Bank of China's contributions and China Construction Bank’s contributions were split evenly across the 3 year and 5 year tranches.
Number of official sources
3
Number of total sources
3
Details
Cofinanced
Yes
Cofinancing agencies [Type]
BNP Paribas S.A. [Private Sector]
Dresdner Kleinwort [Private Sector]
Mizuho Bank [Private Sector]
Standard Bank of South Africa Ltd. [Private Sector]
Sumitomo Mitsui Banking Corporation [Private Sector]
Goldman Sachs Bank USA [Private Sector]
Societe Generale [Private Sector]
Bank of China (BOC) [State-owned Commercial Bank]
Bank of Montreal Europe plc [Private Sector]
Swedbank [Private Sector]
WGZ Bank [Private Sector]
UFJ Bank [Private Sector]
Natexis Banques Populaires [Private Sector]
Bank of Taiwan [State-owned Bank]
WestLB AG [State-owned Bank]
The Bank of Tokyo-Mitsubishi, Ltd. (BTM) [Private Sector]
LRP Landesbank Rheinland-Pfalz [Private Sector]
Bank of New York [Private Sector]
Commerzbank Aktiengesellschaft [Private Sector]
Crédit Agricole Group [Private Sector]
Natixis [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]
Citibank N.A. [Private Sector]
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
2.55%
Grant element (OECD Grant-Equiv)
5.9444%