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Overview

ICBC contributes to EUR 365.2 million syndicated loan tranche to Afreximbank for debt refinancing purposes in April 2017 (Linked to Record ID#92327)

Commitments (Constant USD, 2023)$31,303,350
Commitment Year•2017Country 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
Apr 1, 2017
Last repayment
Mar 31, 2020

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Barclays Bank PLC
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Emirates NBD Capital Limited (formerly Emirates Financial Services PSC)
  • HSBC Bank PLC
  • Mizuho Bank, Ltd.
  • MUFG Bank, Ltd. (Formerly Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU))
  • Rand Merchant Bank (RMB)
  • Standard Bank of South Africa Limited (Standard Bank)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Abu Dhabi Commercial Bank PJSC (ADCB)
  • Arab Banking Corporation (Bank ABC)
  • National Bank of Abu Dhabi PJSC (NBA)

Receiving agencies

Intergovernmental Organizations

  • African Export-Import Bank (Afreximbank)

Implementing agencies

Intergovernmental Organizations

  • African Export-Import Bank (Afreximbank)

Loan desecription

ICBC contributions to USD 700 million dual-currency syndicated loan to Afreximbank for debt refinancing purposes in April 2017

Grant element•11.5249%Interest rate (t₀)•1.059%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

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 EUR 365.2 million tranche; linked Record ID#92327 captures ICBC's contribution to the $311.5 million tranche.

Staff comments

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.