Overview

ICBC provides $1 billion loan in FY 2017-2018 to shore up Pakistan’s foreign exchange reserves

Commitments (Constant USD, 2023)$1,064,126,381

Commitment Year•2017Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jul 1, 2017

First repayment (originally scheduled): Jun 30, 2020

Last repayment (originally scheduled): Jun 30, 2020

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

Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Government Agencies

State Bank of Pakistan (SBP)

Loan description

ICBC provides $1 billion loan in FY 2017-2018 to shore up Pakistan’s foreign exchange reserves

Grace period•3 yearsGrant element•13.2793%Interest rate (t₀)•4.54917%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3 years

Narrative

Full Description

Project narrative

In Fiscal Year 2017-2018, the Industrial and Commercial Bank of China (ICBC) provided a $1 billion loan to the State Bank of Pakistan to shore up the country’s foreign exchange reserves. This loan carried the following borrowing terms: a 3-year maturity, a 3-year grace period, and an interest rate of 3-month LIBOR (2.307%) plus a 3.25% margin.

Staff comments

1. The precise loan commitment date is unknown. This issue requires further investigation. For the time being, AidData assumed that the loan contracted in Fiscal Year 2017-2018 was contracted in calendar year 2017, and the commitment date is coded as July 1, 2017. 2. The all-in interest rate was calculated by adding 3.25% to the average, 3-month LIBOR rate in 2018 (2.307%).