China Construction Bank contributes $26.5 million to 3-year tranche of $1 billion syndicated loan to South African Reserve Bank (Linked to Record ID#72471, #72492, and #72493)

Project narrative

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 Record ID#72471. Bank of China's contribution to the 5 year tranche is recorded in Record ID#72492. China Construction Bank’s contribution to the the 3 year tranche is recorded in Record ID#72472. China Construction Bank’s contribution to the the 5 year tranche is recorded in Record ID#72493.