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Overview

CCB (Johannesburg Branch) contributes to $500 million syndicated loan to Afreximbank for trade financing, debt refinancing, and general corporate purposes in December 2018

Commitments (Constant USD, 2023)$45,740,740
Commitment Year•2018Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Africa, regionalOverseas Jurisdiction•South AfricaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2018
Last repayment
Nov 30, 2023

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

Miscellaneous Agency Types

  • Tianjin The First Commercial School

Private Sector

  • Standard Chartered Bank PLC
  • The Shanghai Commercial & Savings Bank, Ltd. (SCSB)

State-owned Banks

  • Bank of Taiwan
  • Taiwan Cooperative Bank

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)
  • China Bank of Communications (BoCom or BoComm)
  • Huaxia Bank Co., Ltd.
  • Industrial and Commercial Bank of China (ICBC)

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Intergovernmental Organizations

  • African Export-Import Bank (Afreximbank)

Implementing agencies

Intergovernmental Organizations

  • African Export-Import Bank (Afreximbank)

Guarantors

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Loan desecription

China Eximbank, ABC, ICBC, Huaxia Bank, China BoCom, and CCB contributions to USD 500 million syndicated loan to Afreximbank for on-lending purposes in December 2018

Grant element•11.9952%Interest rate (t₀)•3.99463%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

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. Record ID#109938 captures the contribution of the DIFC Branch of Agricultural Bank of China. Record ID#92348 captures the contribution of the Seoul Branch of Agricultural Bank of China. Record ID#92347 captures the contribution of the Paris Branch of China Eximbank's contribution to this loan. Record ID#92349 captures the contribution of the Luxembourg Branch of ICBC. Record ID#109939 captures the contribution of the London Branch of ICBC. Record ID#92350 captures the contribution of the Shanghai Pilot Free Trade Zone Branch of Hua Xia Bank Co Ltd. Record ID#92351 captures the contribution of the Shanghai Branch of Bank of Communications. Record ID#92352 captures the contribution of the Johannesburg Branch of China Construction Bank Corporation.

Staff comments

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.