Skip to content
AidData logo

Overview

China Construction Bank contributes $36 million to $1.5 billion syndicated loan to help South African Reserve Bank and National Treasury support the country’s foreign currency position

Commitments (Constant USD, 2023)$83,610,783
Commitment Year•2001Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 30, 2001
Last repayment (originally scheduled)
Jul 29, 2004

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Bank of Montreal Europe plc
  • Banque Internationale Des Mascareignes
  • Bayerische Hypo- und Vereinsbank AG
  • BHF Bank
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Credit Agricole S.A. (Crédit Agricole Group)
  • Deutsche Bank AG
  • DGB Dekabank
  • Dresdner Kleinwort
  • Erste Group Bank AG (Erste Group)
  • Goldman Sachs Bank USA
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Kredietbank ABB Insurance CERA Bank (KBC)
  • Mizuho Bank, Ltd.
  • Morgan Stanley
  • Natexis Banques Populaires
  • Raiffeisen Zentralbank Österreich A.G. (RZB)
  • Sanwa Bank Limited
  • Standard Bank London Ltd
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • The Bank of Tokyo-Mitsubishi, Ltd. (BTM)
  • UBS Group AG

State-owned Banks

  • Bank of Taiwan
  • Bayerische Landesbank (BayernLB)
  • LRP Landesbank Rheinland-Pfalz
  • WestLB AG

Receiving agencies

Government Agencies

  • South African Reserve Bank (SARB)

Implementing agencies

Government Agencies

  • South Africa National Treasury
  • South African Reserve Bank (SARB)

Loan description

China Construction Bank contributes $36 million to $1.5 billion syndicated loan to help South African Reserve Bank and National Treasury support the country’s foreign currency position

Grant element•6.93%Interest rate (t₀)•4.52875%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3 years

Narrative

Full Description

Project narrative

On July 30, 2001, a group of banks including China Construction Bank (CCB) signed a $1.5 billion loan facility agreement with the South African Reserve Bank (SARB) and the South African National Treasury to support the country’s foreign currency position. There were four types of lenders in the syndicate: Lead Arrangers committed $69 million, Co-Arrangers committed $36 million, Senior Lead Managers committed to $23 million, and Lead Managers committed $12 million. As a Co-Arranger, CCB committed $36 million. The facility carried the following terms: a 3 year maturity and a 4.601% interest rate (3-month LIBOR plus 850 basis points). It is unclear whether SARB or the National Treasury ever drew down this facility.

Staff comments

1. AidData calculated the all-in interest rate as follows: 3.751% (3-month LIBOR in July 2001) + 0.85% (given margin) = 4.601%