Project ID: 93688

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

Commitment amount

$ 101653853.37263946

Adjusted commitment amount

$ 101653853.37

Constant 2021 USD

Summary

Funding agency [Type]

Bank of China (BOC) [State-owned Commercial Bank]

Recipient

South Africa

Sector

Business and other services (Code: 250)

Flow type

Loan

Level of public liability

Other public sector debt

Infrastructure

No

Category

Intent

Commercial (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Implementation (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2020-01-01

Actual start

2020-03-31

Planned complete

2030-12-02

Description

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 12.27%. 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.

Additional details

1. Transnet participated in two interest rate swaps with the Bank of China in 2020. The first project is captured in project ID#93687 and has a payable rate of 11.83% and a receivable rate of JIBAR + 2.7%. This is a separate project with a payable rate of 12.27% and a receivable rate of JIBAR + 2.7%.

Number of official sources

1

Number of total sources

1

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Details

Cofinanced

No

Direct receiving agencies [Type]

Transnet [State-owned Company]

Loan Details

Maturity

10 years

Interest rate

12.27%

Grant element (OECD Grant-Equiv)

0.0%

Bilateral loan

Cross-currency interest rate swap