Bank of Communications participates in $340 million syndicated loan to TDB for general corporate purposes in June 2016 (Linked to Project ID#92296, #92297, and #92298)

On June 27, 2016, the Southern African Trade and Development Bank (TDB) signed a $340 million syndicated loan facility agreement with a group of banks for general corporate purposes. The loan carried a 3-year maturity and an interest rate of LIBOR plus a 2.5% margin. Participants in the lending syndicate included the Export-Import Bank of China, the Industrial and Commercial Bank of China (ICBC), Bank of Communications, China Construction Bank (CCB), and Standard Chartered Bank. This project captures Bank of Communications' contribution. Project ID#92296 captures ICBC's contribution. Project ID#92294 captures China Eximbank's contribution. Project ID#92298 captures CCB's contribution.

Additional details

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 Chinese government is the largest shareholder in Eastern and Southern African Trade and Development Bank (formerly known as PTA Bank), with a 9.3% shareholding. 3. The precise size of the contributions of China Eximbank, ICBC, Bank of Communications, China Construction Bank to the loan syndicate are unknown. For the time being, AidData assumes equal contributions to the $340 million loan ($68 million) across the 5 known participants in the loan syndicate. 4. AidData has estimated the all-in interest rate by adding 2.5% to average 6-month LIBOR in June 2016 (0.936%). 5. Some sources suggest that there were Indian, Korean, and Taiwanese lenders that participated in the loan syndicate. Another source claims that ‘[t]he deal was a three year bullet loan which targeted mainly Chinese lenders’. This issue warrants further investigation.

Number of official sources

5

Number of total sources

9