Active Development AidData Chinese Aid

ABC (DIFC Branch) contributes to $500 million syndicated loan to Afreximbank for trade financing, debt refinancing, and general corporate purposes in December 2018

$45.45M USD

Funder	Agricultural Bank of China (ABC)
Recipient Organization	African Export-Import Bank (Afreximbank)
Country	Africa, regional
Start Date	Dec 01, 2018
End Date	Jul 29, 2027
Duration	3,162 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`109938`

Grant Description

China Eximbank, ABC, ICBC, Huaxia Bank, China BoCom, and CCB contributions to USD 500 million syndicated loan to Afreximbank for on-lending purposes in December 2018 In December 2018, the African Export-Import Bank (Afreximbank) signed a $500 million syndicated term loan facility agreement with a group of 11 banks for trade financing, debt refinancing, and general corporate purposes.

📋 Loan / Grant Terms

💰 Loan Amountcarries a 5-year maturity and an interest rate of LIBOR plus a 1

📅 Maturity5 years

It is partly guaranteed by the Export-Import Bank of China.

Participants in the loan syndicate included Standard Chartered Bank (Coordinating Bank, Bookrunner, Mandated Lead Arranger); Paris Branch of the Export-Import Bank of China (Mandated Lead Arranger); Agricultural Bank of China Seoul Branch (Mandated Lead Arranger); ICBC Luxembourg Branch (Mandated Lead Arranger); ICBC London Branch (Mandated Lead Arranger); Agricultural Bank of China (DIFC Branch) (Lead Arranger); Hua Xia Bank Co Ltd Shanghai Pilot Free Trade Zone Branch (Arranger); Bank of Communications Shanghai Branch (Arranger); China Construction Bank Corporation, Johannesburg Branch (Arranger); First Commercial Bank, Offshore Banking Branch (Arranger); Taiwan Cooperative Bank, Offshore Banking Branch (Arranger); Bank of Taiwan, Offshore Banking Branch (Arranger); and The Shanghai Commercial & Savings Bank, Ltd.

Offshore Banking Branch (Arranger).

Standard Chartered Bank acted as sole Coordinating Bank, Documentation Agent and Facility Agent on the Facilities as well as Sole Bookrunner on the Syndicated Facility. The borrower drew down on this facility in 2019. Record ID#109938 captures the contribution of the DIFC Branch of Agricultural Bank of China.

Record ID#92348 captures the contribution of the Seoul Branch of Agricultural Bank of China. Record ID#92347 captures the contribution of the Paris Branch of China Eximbank's contribution to this loan. Record ID#92349 captures the contribution of the Luxembourg Branch of ICBC. Record ID#109939 captures the contribution of the London Branch of ICBC.

Record ID#92350 captures the contribution of the Shanghai Pilot Free Trade Zone Branch of Hua Xia Bank Co Ltd. Record ID#92351 captures the contribution of the Shanghai Branch of Bank of Communications. Record ID#92352 captures the contribution of the Johannesburg Branch of China Construction Bank Corporation.

📋 Staff Comments

The precise size of the contributions of the Export-Import Bank of China (Paris Branch), Agricultural Bank of China (Seoul Branch), ICBC (Luxembourg Branch), ICBC (London Branch), Agricultural Bank of China (DIFC Branch), Huaxia Bank Co Ltd (Shanghai Pilot Free Trade Zone Branch), Bank of Communications (Shanghai Branch), and China Construction Bank Corporation (Johannesburg Branch) to the loan syndicate are unknown. For the time being, AidData assumes equal contributions ($45,454,545) across the 11 participants in the loan syndicate. 8 PRC state-owned policy and commercial banks participated in the syndicated loan. Therefore, AidData’s estimate of total loan commitments from these banks is $363,636,360.
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.
This loan is not included in the Chinese Loans to Africa Database developed by SAIS-CARI and maintained by the Global Development Policy Center at Boston University.

📚 Sources & References

Base Offering Memorandum
Afreximbank secures second China Exim-backed term loan
African Export-Import Bank US$500,000,000 Syndicated Term Loan Facility
Afreximbank-Annual_Report_2019 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.