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Overview

Bank of China (Zambia) provides $30 million loan for unspecified defense project in 2019

Commitments (Constant USD, 2023)$31,139,625
Commitment Year•2019Country of Activity•ZambiaDirect Recipient Country of Incorporation•ZambiaOverseas Jurisdiction•ZambiaSector•Government And Civil SocietyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
First repayment (originally scheduled)
Jul 31, 2021
Last repayment (originally scheduled)
Jan 29, 2025

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 (Zambia) Limited

Receiving agencies

Government Agencies

  • Government of Zambia

Loan description

Bank of China (Zambia) provides $30 million loan for unspecified defense project in 2019

Grace period•2.5833 yearsGrant element•14.5419%Interest rate (t₀)•5.5166%Interest type•Fixed Interest RateMaturity•6.0833 years

Narrative

Full Description

Project narrative

According to Zambia’s Ministry of Finance, Bank of China Zambia Ltd. and the Government of Zambia signed a $30 million loan agreement between January 2019 and June 2019 for an unspecified defense project. The estimated borrowing terms of the loan are as follows: a 2.5833-year grace period, a 6.0833-year maturity, and a 5.5166% interest rate. No additional details are available.

Staff comments

1. This project is also known as the Defence Project. 2. Other defense loans contracted by the Government of Zambia in 2019 include a China Eximbank loan for the Chalala Barracks Project (captured via Record ID#88394). 3. According to the World Bank's Debtor Reporting System (DRS), the weighted average grace period of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 2.5833 years in 2019. AidData estimates the grace period of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&dl=0 4. According to the World Bank's Debtor Reporting System (DRS), the weighted average maturity of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 6.0833 years in 2019. AidData estimates the maturity of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&dl=0 5. According to the World Bank's Debtor Reporting System (DRS), the weighted average interest rate of all ‘private’ sector lending from all Chinese creditors to government and government-guaranteed borrowing institutions in Zambia was 5.5166% in 2019. AidData estimates the interest rate of the Bank of China loan that supported the unspecified defense project by using this figure. See https://www.dropbox.com/scl/fi/h1z97tpe8cee8adol7ml8/Private-Chinese-Loans-to-Zambia-DRS-November-2023-Extraction.xlsx?rlkey=vxfb0rhd1tcm1vvt4nlfbpu57&dl=0