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Overview

Bank of China contributes ZAR 77 million to Land Bank through Facility B of syndicated loan (Linked to Record ID#87598)

Commitments (Constant USD, 2023)$6,309,555
Commitment Year•2015Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2015

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

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Absa Group Ltd. (ABGL) (Formerly Barclays Africa Group Limited)
  • Standard Bank of South Africa Limited (Standard Bank)

Receiving agencies

State-owned Banks

  • Land and Agricultural Development Bank of South Africa (LADBSA(

Guarantors

Government Agencies

  • Government of South Africa

Loan description

In 2015, Bank of China contributes to dual-tranche ZAR 2.7 billion syndicated loan to Land Bank, South Africa

Interest type•Unknown

Narrative

Full Description

Project narrative

In March 2015 (Fiscal Year 2016), Bank of China (BOC) lent a total of ZAR 154 million to the Land and Agricultural Development Bank of South Africa (Land Bank) 'to increase the maturity profile of the Land Bank's funding liabilities.' Bank of China's contribution was equally divided (ZAR 77 each) between Facility A (as captured via Record ID#87598) and Facility B (as captured via Record ID#87599). These facilities were part of a larger ZAR 2.7 billion syndicated loan with Absa Group Ltd. and Standard Bank South Africa (SBSA). The syndicated loan was guaranteed by the Government of South Africa. Facility A had a total value of ZAR 1.604 billion and a 6-year maturity (and bullet repayment structure). Land Bank voluntarily prepaid ZAR 524 million and on May 31, 2018 but the entire ZAR 77 million from BOC was still outstanding as of August 31, 2018. Facility B had a total value of ZAR 1.096 million and a 7-year maturity (and amortizing repayment structure). Land Bank voluntarily prepaid ZAR 679 million on June 29, 2018 bringing the BOC outstanding balance down to ZAR 65 million as of August 31, 2018. By September 28, 2018, Land Bank’s ZAR 2.7 billion syndicated loan had been prepaid in full. The loan was prepaid because it had 'become too expensive following a number of Sovereign Rating downgrades.'

Staff comments

1. The Government of South Africa's Fiscal Year 2016 ran from March 1, 2015 to February 28, 2016. 2. As of September 2024, this loan was identified as having a commitment year of 2016 in the Chinese Loans to Africa (CLA) Database that is maintained by Boston University's Global Development Policy Center.