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Overview

CDB provides $250 million loan to Banque Misr for unspecified purposes in 2021

Commitments (Constant USD, 2023)$230,535,409
Commitment Year2021Country of ActivityEgyptDirect Recipient Country of IncorporationEgyptSectorUnallocated/unspecifiedFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2021
First repayment (originally scheduled)
Nov 30, 2024
Last repayment (originally scheduled)
Nov 30, 2024

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Banque Misr

Loan description

CDB provides $250 million loan to Banque Misr for unspecified purposes in 2021

Grace period3 yearsGrant element18.3226%Interest rate (t₀)2.5695%Interest typeVariable Interest RateLoan tenor6-month rateMaturity3 years

Narrative

Full Description

Project narrative

In December 2021, China Development Bank and Banque Misr (Misr Bank) — a bank that is wholly owned by the Government of Egypt — signed a $250 million facility (loan) agreement. The purpose of the loan is unknown. However, it is known that the loan carried the following borrowing terms: a 3 year maturity, a 3 year grace period, and an interest rate of 6-month LIBOR plus a 2.3% margin. The borrower is responsible for repaying the entirety of the loan’s principal in a single, lump sum (bullet payment) at maturity (December 2024). It is also responsible for making semi-annual interest payments from June 2022 to December 2024.

Staff comments

1. Upon request from AidData, a confidential source with direct knowledge of the transaction has confirmed the loan's face value, commitment date, interest rate, grace period, and final maturity date. 2. The face value, commitment date, interest rate, grace period, and final maturity date of the loan identified in this record is consistent with the data that the Government of Egypt has voluntarily disclosed to the World Bank through the Debtor Reporting System (DRS). 3. AidData has estimated the all-in interest rate (2.606%) by adding 2.3% to average 6-month LIBOR (0.306%) in December 2021. 4. The facility (loan) agreement is referenced here: http://se.china-embassy.gov.cn/eng/zgxw_0/202310/t20231020_11164541.htm