Bank of China contributes to 3-year tranche of $400 million syndicated loan to South African Standard Bank (Linked to Project ID#98241, #98803, #98805, #98806 and #98807)

In August 2005, South Africa’s Standard Bank completed syndication of a USD $400 million loan with 34 lenders. Mandated lead arrangers and bookrunners for the syndicated loan are Bank of Tokyo Mitsubishi, Dresdner Kleinwort Wasserstein, HSH Nordbank, HSBC, ING and Natexis Banques Populaires. Other mandated lead arrangers include Barclays Bank, BayernLB, Commerzbank, Erste Bank, HVB, Mizuho, Royal Bank of Scotland, Standard Chartered, SMBC and WestLB. Joining during general syndication were Allied Irish Banks, Bank Austria, Bank of China, Banca Monte dei Paschi di Siena, Bank of New York, China Construction Bank, Citigroup, DBS, JP Morgan, KBC, Kommunalkredit International, Landesbank Saar, LRP, Mascareignes Banque, Nanyang Commercial Bank, Taiwan Bank, WGZ and Zürcher. The loan was equally divided into two tranches: a three-year tranche and a five-year tranche.Funds were equally divided between the two tranches. The first USD $200 million tranche, to which Bank of China, China Construction Bank, and Nanyang Commercial Bank each contributed USD $5,882,352.94, had a three year maturity and an interest rate of 4.248% (average 6-month LIBOR in August 2005 + 22.5 basis points). The second $200 million tranche, to which Bank of China, China Construction Bank, and Nanyang Commercial Bank each contributed USD $5,882,352.94, had a five year maturity and an interest rate of 4.298% (average 6-month LIBOR in August 2005 + 27.5 basis points). The loan proceeds are allocated for unspecified purposes. Bank of China's estimated contribution ($5,882,352.94 USD) to the 5 year tranche is recorded in Project ID#98241. China Construction Bank's estimated contributions ($5,882,352.94 USD for each tranche, totaling $11,764,705.90 USD) to the 3 and 5 year tranches are captured in Project ID#98803 and #98806 respectively. Nanyang Commercial Bank's estimated contributions to the 3 and 5 year tranche ($5,882,352.94 USD for each tranche, totaling $11,764,705.90 USD) are captured in Project ID#98805 and #98807 respectively.

Additional details

1. Sources report that the syndicated loan funds were to be 'equally divided' between the two tranches. Therefore it is assumed that Bank of China, China Construction Bank, and Nanyang Commercial Bank’s contributions were split evenly across the 3 year and 5 year tranches. 2. The individual contributions of each lender in the syndicate is unknown. AidData assumes that each official sector financing institution from China contributed an equal amount to the syndicated loan: USD $11,764,705.90. Because the USD $400 million loan was divided equally between two tranches, AidData assumes that each official sector financing institution contributed an equal amount to each tranche: USD $5,882,352,94 (half of their USD $11,764,705.90 total contribution to the loan). AidData estimated these contributions by dividing the total face value of the loan (USD $400 million) with the total number of financiers in the syndicate (34 financiers). 3. The three year tranche of this loan carried a 4.248% interest rate (AidData calculated the interest rate as follows: 4.023% [average 6-month LIBOR in August 2005] + .225% [22.5 basis points] = 4.248%). 4. The five year tranche of this loan carried a 4.298% interest rate (AidData calculated the interest rate as follows: 4.023% [average 6-month LIBOR in August 2005] + .275% [27.5 basis points] = 4.298%).

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Number of total sources

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