China Eximbank contributes to EUR 561 million syndicated loan tranche to Afreximbank for trade financing and general corporate purposes in June 2017 (Linked to Project ID#92380, #92383, #92385, #92396, and #92397)

On May 30, 2017, the African Export-Import Bank (Afreximbank) signed a $1.16 syndicated loan facility agreement with a group of 35 banks for trade financing and general corporate purposes. The loan consisted of two tranches: a $632 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 561 million ($528 million) tranche with a maturity length of three years and an interest rate of EURIBOR plus a 1.3% margin. Standard Chartered Bank served as coordinator, bookrunner and agent for the facility and was supported by 13 initial mandated lead arrangers and bookrunners. These are: Bank ABC (Arab Banking Corporation B.S.C.); Abu Dhabi Commercial Bank PJSC; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Barclays Bank Mauritius Limited; Sumitomo Mitsui Banking Corporation Europe Ltd.; Commerzbank Aktiengesellschaft Filiale Luxemburg; Emirates NBD Capital Limited; Rand Merchant Bank, a division of FirstRand Bank Limited (London Branch); HSBC Bank plc.; ICBC (London) plc.; Mizuho Bank Ltd.; National Bank of Abu Dhabi PJSC; and The Standard Bank of South Africa Limited, Isle of Man Branch. The 13 initial mandated lead arrangers and bookrunners were joined at the general syndication stage by AKA Ausfuhrkredit; Axis Bank; Bank of China; Bank of Taiwan; Banque Misr; Commercial Bank of Kuwait; Export-Import Bank of China; First Commercial Bank; State Bank of India; Chang Hwa Commercial Bank; Land Bank of Taiwan; Mega International Commercial Bank Co.; Shanghai Commercial and Savings Bank; Barclays Bank Egypt; Ghana International Bank; KEB Hana Bank; Taipei Fubon Commercial Bank; The Export – Import Bank of the Republic of China; Export-Import Bank of Korea; and Federated Investors, Inc. as mandated lead arrangers and arrangers. This project captures China Eximbank's contribution to the EUR 561 million tranche. Linked Project ID#92396 captures ICBC's contribution. Linked Project ID#92397 captures BOC's contribution. Linked Project ID#92380 captures China Eximbank's contribution to the $632 million tranche. Linked Project ID#92383 captures ICBC's contribution. Linked Project ID#92385 captures BOC's contribution.

Additional details

1. The exact sizes of the contributions from China Eximbank, ICBC, and Bank of China to the loan syndicate are unknown. For the time being, AidData assumes equal contributions to the dollar-denominated loan tranche ($18,057,142) and the euro-denominated loan tranche (EUR 16,028,571) across the 35 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 May 2017 (1.425%). 3. AidData has estimated the all-in interest rate for the euro-denominated tranche by adding 1.3% to average 6-month EURIBOR in May 2017 (-0.251%). 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.

Number of official sources

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Number of total sources

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