Overview

Bank of China loans Transnet ZAR 1.5 billion for interest rate swap

Commitments (Constant USD, 2023)$93,907,811

Commitment Year•2020Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2020

Start (actual): Jan 1, 2020

End (planned): Dec 2, 2030

Last repayment (originally scheduled): Dec 29, 2029

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

Bank of China (BOC)

Receiving agencies

State-owned companies

Transnet SOC Ltd

Loan description

Bank of China loans Transnet ZAR 1.5 billion for interest rate swap

Grant element•0%Interest rate (t₀)•11.83%Interest type•Fixed Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

According to the annual Financial Statement of Transnet in 2020, as of March 31, 2020, South African state-owned transportation company Transnet was party to an interest rate swap contract for ZAR 1.5 billion with the Bank of China. The hedge interest rate payable by Transnet is 11.83%. The receivable interest rate is 3-month JIBAR (Johannesburg Interbank Average Rate) plus 2.7%. The maturity date for this transaction is December 2, 2030. The transaction was part of Transnet's Second Defined Benefit Fund for employee pensions.

Staff comments

1. Transnet participated in two interest rate swaps with the Bank of China in 2020. The second project is captured in Record ID#93688 and has a payable rate of 12.27% and a receivable rate of JIBAR + 2.7%. This is a separate project with a payable rate of 11.83% and a receivable rate of JIBAR + 2.7%.