Narrative
Full Description
Project narrative
On October 2, 2018, the Southern African Trade and Development Bank (TDB) signed a $460 million syndicated loan facility agreement with a group of banks for debt refinancing purposes. The loan consisted of two tranches: a $200 million tranche with a 2-year maturity and an interest rate of LIBOR plus a 1.2% margin and a $260 million tranche with a 3-year maturity and an interest rate of LIBOR plus a 1.4% margin. This project captures CDB's contribution to the $200 million loan tranche. ICBC's contribution to the $200 million loan tranche is captured via Record ID#59435. BOC's contribution to the $200 million loan tranche is captured via Record ID#92299. BOC's contribution to the $260 million loan tranche is captured via Record ID#92305. ICBC's contribution to the $260 million loan tranche is captured via Record ID#66947. CDB's contribution to the $260 million loan tranche is captured via Record ID#92306. Participants in the lending syndicate included Citigroup, Commerzbank, Emirates NBD, First Abu Dhabi Bank, Industrial & Commercial Bank of China, Mashreqbank, Mizuho, MUFG, Standard Chartered, Sumitomo Mitsui Financial Group, Bank of China, and China Development Bank. Standard Chartered acted as Documentation Agent and Citigroup acted as Facility Agent. The proceeds of the loan were to be used by the borrower to refinance a $400 million syndicated term loan that TDB contracted on October 5, 2016 (see Record ID#91931).
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 ICBC, Bank of China, and China Development Bank to the loan syndicate are unknown. For the time being, AidData assumes equal contributions to the $260 million loan tranche ($21,666,666) and the $200 million loan tranche ($16,666,666) across the 12 known participants in the loan syndicate. 4. For the time being, AidData assumes that all lenders participated in both tranches. This issue warrants further investigation. 5. AidData has estimated the all-in interest rate for the $260 million tranche by adding 1.4% to average 6-month LIBOR in October 2018 (2.687%). AidData has estimated the all-in interest rate for the $200 million tranche by adding 1.2% to average 6-month LIBOR in October 2018 (2.687%).