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Overview

CDB provides $600 million loan to National Bank of Egypt for unspecified purposes in 2021

Commitments (Constant USD, 2023)$553,284,982
Commitment Year•2021Country of Activity•EgyptDirect Recipient Country of Incorporation•EgyptSector•Unallocated/unspecifiedFlow Type•Loan

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

  • National Bank of Egypt (S.A.E.)

Loan description

CDB provides $600 million loan to National Bank of Egypt for unspecified purposes in 2021

Grace period•3 yearsGrant element•18.7047%Interest rate (t₀)•2.4195%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•3 years

Narrative

Full Description

Project narrative

In December 2021, China Development Bank and the National Bank of Egypt (NBE) — a state-owned Egyptian bank — signed a $600 million 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 2.15% 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 (2.456%) by adding 2.15% to average 6-month LIBOR (0.306%) in December 2021. 4. In April 2023, CDB reported that it had made a $300 million loan disbursement to NBE to support 49 small and medium-sized enterprise development and infrastructure construction project. It is unclear if this disbursement was made under the December 2021 loan agreement with CDB or another agreement. This issue warrants further investigation. 5. NBE’s annual financial statements can be accessed via https://www.nbe.com.eg/NBE/E/#/EN/FinancialIndicators.