ICBC contributes to $311.5 million syndicated loan tranche to Afreximbank for refinancing purposes in April 2017 (Linked to Project ID#92328)

In April 2017, the African Export-Import Bank (Afreximbank) signed a $700 syndicated loan facility agreement with a group of 14 banks for debt refinancing purposes. The loan consisted of two tranches: a $311.5 million tranche with a maturity length between two and three years and an interest rate of LIBOR plus a 1.25% to 1.40% margin and an EUR 365.2 million tranche with a maturity length of three years and an interest rate of EURIBOR plus a 1.3% margin. Participants in the loan syndicate included Abu Dhabi Commercial Bank, Arab Banking Corp, Barclays, Commerzbank, Emirates NBD, HSBC, ICBC, Mizuho, MUFG, SMBC, NBAD, StanChart, Standard Bank and Rand Merchant Bank. The proceeds of the $700 million were to be used by the borrower to refinance a $500 million loan that matured on May 4, 2017. Barclays, FirstRand, HSBC, MUFG and Standard Chartered were mandated lead arrangers on the $500 million loan with allocations of $100 million each. This project captures ICBC's contribution to the $311.5 million tranche; linked project ID#92328 captures ICBC's contribution to the EUR 365.2 million tranche.

Additional details

1. The precise size of ICBC’s contribution to the lending syndicate is unknown. For the time being, AidData assumes equal contributions to the dollar-denominated loan tranche ($22.25 million) and the euro-denominated loan tranche (EUR 26,085,714) across the 14 participants in the loan syndicate. 2. AidData has estimated the all-in interest rate for the dollar-denominated tranche by adding 1.325% (the midpoint between 1.25% and 1.4%) to average 6-month LIBOR in April 2017 (1.417%). 3. AidData has estimated the all-in interest rate for the euro-denominated tranche by adding 1.3% to average 6-month EURIBOR in April 2017 (-0.260%). 4. AidData has estimated the maturity length of the dollar-denominated tranche by taking the midpoint between 2 years and three years. 5. For the time being, AidData assumes that all lenders participated in both tranches. This issue warrants further investigation. 6. 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.

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