Bank of Communications contributes to $500 million syndicated loan to Afreximbank for on-lending purposes in December 2018 (Linked to Project ID#92347, #92348, #92349, #92350, and #92352)

In December 2018, the African Export-Import Bank (Afreximbank) signed a $500 million syndicated term loan facility agreement with a group of 11 banks for trade financing, debt refinancing, and general corporate purposes. The loan carries a 5-year maturity and an interest rate of LIBOR plus a 1.1% margin. It is partly guaranteed by the Export-Import Bank of China. Participants in the loan syndicate included Standard Chartered Bank (Coordinating Bank, Bookrunner, Mandated Lead Arranger); Paris Branch of the Export-Import Bank of China (Mandated Lead Arranger); Agricultural Bank of China Seoul Branch (Mandated Lead Arranger); ICBC Luxembourg Branch (Mandated Lead Arranger); ICBC London Branch (Mandated Lead Arranger); Agricultural Bank of China (DIFC Branch) (Lead Arranger); Hua Xia Bank Co Ltd Shanghai Pilot Free Trade Zone Branch (Arranger); Bank of Communications Shanghai Branch (Arranger); China Construction Bank Corporation, Johannesburg Branch (Arranger); First Commercial Bank, Offshore Banking Branch (Arranger); Taiwan Cooperative Bank, Offshore Banking Branch (Arranger); Bank of Taiwan, Offshore Banking Branch (Arranger); and The Shanghai Commercial & Savings Bank, Ltd. Offshore Banking Branch (Arranger). Standard Chartered Bank acted as sole Coordinating Bank, Documentation Agent and Facility Agent on the Facilities as well as Sole Bookrunner on the Syndicated Facility. The borrower drew down on this facility in 2019. This project captures the contributions of the contribution of the Shanghai Branch of Bank of Communications. Project ID#92347 captures the contribution of the Paris Branch of China Eximbank's contribution to this loan. Project ID#92348 captures the contributions of the Seoul and DIFC Branches of Agricultural Bank of China. Project ID#92349 captures the contribution of the Luxembourg and London Branches of ICBC. Project ID#92350 captures the contribution of the Shanghai Pilot Free Trade Zone Branch of Hua Xia Bank Co Ltd. Project ID#92352 captures the contribution of the Johannesburg Branch of China Construction Bank Corporation.

Additional details

1. The precise size of the contributions of the Export-Import Bank of China (Paris Branch), Agricultural Bank of China (Seoul Branch), ICBC (Luxembourg Branch), ICBC (London Branch), Agricultural Bank of China (DIFC Branch), Huaxia Bank Co Ltd (Shanghai Pilot Free Trade Zone Branch), Bank of Communications (Shanghai Branch), and China Construction Bank Corporation (Johannesburg Branch) to the loan syndicate are unknown. For the time being, AidData assumes equal contributions ($45,454,545) across the 11 participants in the loan syndicate. 8 PRC state-owned policy and commercial banks participated in the syndicated loan. Therefore, AidData’s estimate of total loan commitments from these banks is $363,636,360. 2. AidData has estimated the all-in interest rate by adding 1.1% to average 6-month LIBOR in December 2018 (2.889%). 3. 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.

Number of official sources

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