Bank of China contributes $90 million to $410 million syndicated ‘B’ loan to support Transnet’s 5-year capital investment program

Project narrative

In October 2011, Transnet State-Owned Company Limited (‘Transnet’) — an integrated transport and logistics company that is 100% owned by the Government of South Africa (GoSA) — signed a A-loan agreement (worth ZAR 2,703,000,000 or $400 million) with the African Development Bank (AfDB) and a B-loan agreement (worth $410 million) with a syndicate of five banks (Bank of China, Bank of Tokyo Mitsubishi, SMBC, Mizuho, HSBC) to finance its 5-year capital investment program. The A-loan carried a 10 year maturity and a 2 year grace period, while the B-loan carried a 7 year maturity and a 2 year grace period. The borrower was expected to use the proceeds of the loan to finance the company’s capital investment program, which sought to revitalize and expand existing infrastructure and address maintenance deficiencies, especially at Transnet Freight Rail. Contributions to the B-loan included $90 million from Bank of China, $70 million from BTMU, $110 million from SMBC, $90 million from Mizuho, and $50 million from HSBC.