Overview

ICBC contributes to $320 million syndicated loan tranche to Afreximbank for on-lending purposes in May 2010 (Linked to Record ID#92292)

Commitments (Constant USD, 2023)$8,399,271

Commitment Year•2010Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Africa, regionalSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 1, 2010

Last repayment (originally scheduled): Apr 30, 2012

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)

Cofinancing agencies

Private Sector

Commerzbank Aktiengesellschaft (Commerzbank AG)
HSBC (Hong Kong and Shanghai Banking Corporation)
Raiffeisen Bank International AG
Standard Bank of South Africa Limited (Standard Bank)
Standard Chartered Bank PLC
The Bank of Tokyo-Mitsubishi, Ltd. (BTM)

State-owned Banks

Arab Banking Corporation (Bank ABC)
WestLB AG

Receiving agencies

Intergovernmental Organizations

African Export-Import Bank (Afreximbank)

Implementing agencies

Intergovernmental Organizations

African Export-Import Bank (Afreximbank)

Loan description

ICBC contributions to a USD 500.29 million dual-currency syndicated term loan facility agreement with Afreximbank for on-lending purposes in May 2010

Grant element•5.4435%Interest rate (t₀)•3.78063%Interest type•Variable Interest RateMaturity•2 years

Narrative

Full Description

Project narrative

In May 2010, the African Export-Import Bank (Afreximbank) signed a $500.29 million syndicated term loan facility agreement with a group of 49 banks from Europe, Middle East, Africa and Asia for on-lending purposes. The loan carries a 2-year maturity and an interest rate of LIBOR plus a 3.25% margin. It has two tranches: a $320 million syndicated loan tranche and an EUR 134 million syndicated loan tranche (captured by linked Record ID#92292). Participants in the syndicated loan included Arab Banking Corp, Bank of Tokyo-Mitsubishi UFJ, Commerzbank, HSBC, Industrial and Commercial Bank of China (ICBC), Raiffeisen Bank International (RBI), Standard Bank, Standard Chartered Bank, and WestLB.

Staff comments

1. This loan is not included in the Chinese Loans to Africa Database developed by SAIS-CARI and maintained by the Global Development Policy Center at Boston University. 2. The precise size of the contribution of ICBC to the loan syndicate is unknown. For the time being, AidData assumes equal contributions to the $320 million loan tranche ($6,530,612) and the EUR 134 million loan tranche (EUR 2,734,693) across the 49 known participants in the loan syndicate. 3. AidData has estimated the all-in interest rate by adding 3.25% to average 6-month LIBOR in May 2010 (0.659%). 4. For the time being, AidData assumes that all lenders participated in both tranches. This issue warrants further investigation.