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Overview

ICBC contributes to $320.5 million credit facility to Eastern and Southern African Trade and Development Bank (Linked to Record ID#91931)

Commitments (Constant USD, 2023)$65,737,959
Commitment Year•2014Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•Africa, regionalSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2014
Last repayment (originally scheduled)
Sep 30, 2016

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • Mashreqbank PSC
  • Standard Chartered Bank (Hong Kong) Limited
  • Sumitomo Mitsui Banking Corporation Europe Limited

Receiving agencies

Intergovernmental Organizations

  • Eastern and Southern African Trade and Development Bank (TDB)

Loan description

ICBC contributes to $320.5 million syndicated credit facility to Eastern and Southern African Trade and Development Bank in October 2014

Grant element•6.2787%Interest rate (t₀)•2.863%Interest type•Fixed Interest RateMaturity•2 years

Narrative

Full Description

Project narrative

In October 2014, ICBC participated (as an arranger) in a $320.5 million syndicated credit facility (loan) agreement with the Eastern and Southern African Trade and Development Bank (PTA). This loan carried a maturity of 2 years and an interest rate of 2.863%. It was the Eastern and Southern African Trade and Development Bank's second-ever syndicated loan. The other arrangers of the loan agreement were Commerzbank, Mashreqbank, Standard Chartered, and Sumitomo Mitsui Financial. Then, on October 5, 2016, the Southern African Trade and Development Bank (TDB) signed a $400 million syndicated loan facility agreement with a group of 18 banks (as captured via Record ID#91931). The borrower was expected to use the loan proceeds to (i) repay a short-term facility that refinanced the borrower’s 2014 $320,500,000 syndicated term loan (captured via Record ID#98649) and (ii) for trade financing, project, and infrastructure financing, and for general corporate purposes.

Staff comments

1. AidData has calculated the all-in interest rate by adding average 6-month LIBOR (0.363% in October 2014) + basis points (250=2.5%) = 2.863% (interest rate of LIBOR plus a margin of 250 basis points). 2. Since no further information was discoverable, AidData estimates the transaction amount (i.e. the amount contributed by ICBC) to be the total loan amount divided equally by each member of the loan syndicate ($320,500,000/5=$64,100,000).