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Overview

CCB participates in $340 million syndicated loan to TDB for general corporate purposes in June 2016 (Linked to Record ID#92296, #92294, and #92297)

Commitments (Constant USD, 2023)$74,169,067
Commitment Year•2016Country 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
Jun 27, 2016
Last repayment (originally scheduled)
Jun 27, 2019

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

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Standard Chartered Bank PLC

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)
  • Industrial and Commercial Bank of China (ICBC)

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Intergovernmental Organizations

  • Eastern and Southern African Trade and Development Bank (TDB)

Implementing agencies

Intergovernmental Organizations

  • Eastern and Southern African Trade and Development Bank (TDB)

Loan desecription

China BoCom, China Eximbank, ICBC, and CCB contributions to a USD 340 million syndicated loan with TDB for general corporate purposes in June 2016

Grant element•8.4422%Interest rate (t₀)•3.38685%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

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 CCB's contribution. Record ID#92296 captures ICBC's contribution. Record ID#92294 captures Bank of Communications' contribution. Record ID#92297 captures China Eximbank's contribution.

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 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.