Bank of China provides $200 million loan to shore up Pakistan’s foreign exchange reserves in November 2019

Project narrative

In November 2019, Bank of China provided a $200 million loan to the State Bank of Pakistan to shore up the country’s foreign exchange reserves (as captured via Record ID#92085). The original borrowing terms of the loan included a 2 year maturity (final maturity date: November 2021), a 2 year grace period, and an interest rate between 6-month LIBOR plus a 2.65% margin. The loan was repaid in full in November 2022. However, it is unclear if the borrower ever secured a maturity extension through a debt rescheduling agreement. Then, in November 2022, Bank of China and the State Bank of Pakistan signed a $200 million rollover loan agreement to shore up the country’s foreign exchange reserves. The loan carried the following borrowing terms: a 2 year maturity and an interest rate between 3-month LIBOR plus a 2.65% margin. It fully disbursed in November 2022 and was reportedly used by the borrower to repay a $1 billion Sukuk bond in December 2022.