Active Development AidData Chinese Aid

CDB provides EUR 200 million loan to BANGE for SME on-lending purposes

€200M EUR

Funder	China Development Bank (CDB)
Recipient Organization	Government of Equatorial Guinea
Country	Equatorial Guinea
Start Date	Jan 22, 2019
End Date	Jun 18, 2032
Duration	4,896 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105653`

Grant Description

CDB provides EUR 200 million loan to BANGE for SME on-lending purposes At the end of 2017, Banco Nacional de Guinea Ecuatorial (National Bank of Equatorial Guinea or BANGE) -- a bank that is majority-owned by the Government of Equatorial Guinea -- requested an EUR 400 million loan from China Development Bank (CDB).

Then, on January 22, 2019, Equatorial Guinea's Ministry of Finance, Economy, and Planning and CDB signed an EUR 200 million term facility (interbank loan) agreement (ID#1942106089) to facilitate on-lending to small- and medium-sized enterprises (SMEs) in Equatorial Guinea.

📋 Loan / Grant Terms

💰 Loan Amountcarried a 10-year maturity

📅 Maturity10 years

⏳ Grace Period3 years

The borrower was also expected to maintain a minimum cash balance of EUR 3.5 million in a debt service reserve account (DSRA). The proceeds of the loan were on-lent from the Ministry of Finance, Economy, and Planning to BANGE. The loan's (principal) amount outstanding was EUR 149,078,927 on March 16, 2020.

The borrower was expected to make an interest payment worth EUR 2,083,827.16 on May 21, 2020.

📋 Staff Comments

CDB offered BANGE an EUR 400 million loan with a more favorable interest rate if it was willing to maintain a minimum balance of EUR 200 million in a cash collateral (escrow) account. However, BANGE reportedly declined this offer and opted for a smaller (EUR 200 million) loan with a higher interest rate.
As of November 2024, this loan from CDB was not captured in Boston University's Chinese Loans to Africa (CLA) database.
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 EUR-denominated DSRA number is NRA42109780000021500000. The USD-denominated deposit account number is NRA42108400034336310000. The EUR-denominated loan account number is NRA42109780000019940000.

📚 Sources & References

Banco Nacional de Guinea Ecuatorial Newsletter
Banco Nacional de Guinea Ecuatorial Newsletter
Una delegación del Banco de Desarrollo Chino se reúne con la Directiva de BANGE.
Una delegación del Banco Chino de Desarrollo visita al BANGE
Una Delegación de CDB ha sido recibida por la directiva del BANGE
Banco Nacional de Guinea Ecuatorial Newsletter
China obligó al régimen de Obiang a renunciar la inmunidad de sus bienes a cambio de la concesión de créditos
APPLICATION FOR A SOVEREIGN TERM LOAN OF EUR 200 MILLION
APPLICATION FOR A SOVEREIGN TERM LOAN OF EUR 400 MILLION, [Correspondence between Government of Equatorial Guinea and CDB with subject line 'RV: application for the SOVEREIGN TERM LOAN to MOF'], [Email correspondence between Government of Equatorial Guinea and CDB with subject 'RV: NEED OF EXECUTING THE FINANCING FOR EG SMES IN STAND-ALONE BASIS'], 2019 Q4 Credit Loan Statement CDB, [Email correspondence with subject line 'Documents CDB needs from MOF'], [Email correspondence with subject line '答复 : About the CA'], [Email correspondence with subject line 'the draft of the Confidentiality Letter']
FORM OF CONFIDENTIALITY LETTER FOR INFORMATION TO BE GIVEN BY CDB, [Email correspondence with subject line 'BANGE's documents needed for legal DD from CDB']
Commitment Fee Notice
Account information
Application Form for Opening a Foreign Exchange Account with CDB by an Overseas Institution and Signature/Seal Sheet, [Email correspondence with subject line 'About the account of the MOF of EG']
INFORME SOBRE LA SITUACION DEL BANCO DE DESARROLLO CHINO(BDC) EN LA FINANCIACION DE LAS PYMES DE GUINEA ECUATORIAL, [Email correspondence with subject line 'About the EUR 110m disbursement']
Sobre Coordinación para la Liberación del Crédito de 200 Millones de Euros, [Email correspondence with subject line 'About the commitment fee on Nov 21', [Email correspondence with subject 'About the repayment on 21 May']
INFORME DE LA MISION DE LA DELEGACION DEL MINISTERIO DE HACIENDA
ECONOMÍA Y PLANIFICACION A BEIJING (REPÚBLICA POPULAR DE CHINA) DEL 22 AL 28 DE JUNIO DEL PRESENTE 2.019 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.