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ICBC contributes to RMB 15 billion syndicated rollover loan to shore up Pakistan’s foreign exchange reserves in 2022
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | State Bank of Pakistan (SBP) |
| Country | Pakistan |
| Start Date | Jun 22, 2022 |
| End Date | Jul 25, 2032 |
| Duration | 3,686 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 105361 |
Grant Description
BoC, ICBC, and CDB contributions to RMB 15 billion syndicated rollover loan to shore up Pakistan’s foreign exchange reserves in 2022 On March 19, 2019, China Development Bank (CDB), Bank of China (BoC), and the Industrial and Commercial Bank of China (ICBC) signed an RMB 15 billion ($2.1837 billion) facility (loan) agreement with the State Bank of Pakistan (SBP) to shore up the country’s foreign exchange reserves.
The estimated contributions from CDB, ICBC, and BoC are captured via Record ID#57695, Record ID#98785, and Record ID#98786, respectively.
The loan fully disbursed, and when it reached maturity in March 2022, it was fully repaid.
Then, on June 22, 2022, CDB, BoC, and ICBC and the State Bank of Pakistan signed an RMB 15 billion ($2,240,310,000) syndicated rollover facility (loan) agreement to shore up the country’s foreign exchange reserves.
The estimated contributions from CDB, BoC, and ICBC are captured via Record ID#96215, Record ID#105360, and Record ID#105361, respectively.
The loan had fully disbursed by June 24, 2022.
Prior to the signing of the June 2022 loan agreement, CDB told the State Bank of Pakistan that (a) future loan proceeds 'could not be used' (i.e. the proceeds from a rollover facility could only be used to bolster gross reserves and serve as 'window dressing') due to weakening of the external sector position of Pakistan, and (b) it expected the Government of Pakistan to remain in good standing with the International Monetary Fund.
However, when the June 2022 loan agreement was finalized, CDB authorized the borrower to freely use the proceeds of the loan (including for external debt service and foreign reserve accumulation).
Staff Comments
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
- The exact size of CDB, Bank of China, and ICBC’s respective financial contributions to the 15 billion RMB syndicated rollover facility in 2022 are unknown. For the time being, AidData assumes that all 3 members of the lending syndicate contributed equal amounts (RMB 5 billion).
Sources & References
- $2.3 bn Chinese loan credited to State Bank of Pakistan: Finance minister
- STATISTICAL SUPPLEMENT, $2.3b loan deal inked with China
- China Deposits 23 Billion to Boost SBP Reserves
- Miftah Ismail on Twitter
- Cabinet approves terms for $2.4bn loan from China
- Pakistan Economic Survey 22-23
- Pak-China loan facility agreement signed, [Tweet from Miftah Ismail on June 22, 2022 'The Chinese consortium of banks']
- China’s RMB 15 billion loan facility agreement, big relief for Pakistan
- Pakistan hails refinancing of $2.24 billion by China
- China backs Pakistan amid economic crisis
- TABLE - Pakistan reserves increase $2,071 mln to $10,309.0 mln week ending Jun 24
- Pakistan’s total liquid foreign reserves rise above $16bn
- SBP-held foreign exchange reserves go over $10bn after Chinese loan, [Tweet by Bilawal Bhutto Zardari on 06/22/2022 'Grateful to President Xi Jinping
- Foreign Minister Wang Yi', “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Saturday, the 13th August, 2022
- Cabinet approves terms for $2.4bn loan from China
- Chinese banks to provide USD 2.3 bln to Pakistan 'within days' under loan agreement
- Pakistan Receives $2.3b From China
- State Bank of Pakistan receives $2.3bn from Chinese banks, tweets Pakistani Finance Minister
- PR No. 174 Islamabad: 22nd October, 2022
- PR No. 257 Islamabad: September 30, 2022 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
State Bank of Pakistan (SBP)
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