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China Construction Bank contributes to ZAR 3 billion syndicated loan agreement with Transnet to support the manufacturing of locomotives for its freight rail business
| Funder | China Construction Bank Corporation (CCB) |
|---|---|
| Recipient Organization | Transnet SOC Ltd |
| Country | South Africa |
| Start Date | Mar 01, 2014 |
| End Date | Jan 09, 2026 |
| Duration | 4,332 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 53289 |
Grant Description
In 2014, China Construction Bank contributes to ZAR 3 billion syndicated loan agreement with Transnet to support the manufacturing of locomotives for its freight rail business In March 2014, Transnet signed a ZAR 3 billion syndicated loan agreement with KFW IPEX-Bank GmbH, Rand Merchant Bank, and the China Construction Bank (CCB).
The loan carried a 5-year maturity. Its other borrowing terms are unknown.
The borrower was expected to use the proceeds of the loan to support the manufacturing of locomotives for its freight rail business.
More specifically, the borrower was expected to use the loan proceeds to finance contracts that Transnet awarded to (a) CSR Zhuzhou Electric Locomotive and Bombardier Transportation SA to supply 599 electric locomotives and (b) General Electric South Africa Technologies and CNR Rolling Stock South Africa to build and supply 465 diesel locomotives.
All the locomotives except 70 were expected to be built at Transnet Engineering's plants in Koedoespoort in Pretoria and Durban, to drive the country's regional integration objectives.
The loan's (principal) amount outstanding was ZAR 2,117,000,000 in 2014, ZAR 644,000,000 in 2015, ZAR 621,000,000 in 2016, ZAR 358,000,000 in 2017, ZAR 181,000,000 in 2018, ZAR 0 in 2019, and ZAR 1,600,000,000 in 2020.
Staff Comments
- The size of China Construction Bank's financial contribution to the ZAR 3 billion syndicated loan is unknown. For the time being, AidData assumes equal contributions (ZAR 1 billion) across the three known members of the syndicate. This issue warrants further investigation.
- This loan was not included in the database of Chinese loan commitments that SAIS-CARI released in 2020 and re-released in 2021. Nor was it included it in the Chinese Loans to Africa (CLA) Database — that is maintained by Boston University's Global Development Policy Center — as of September 2024.
- Transnet Engineering is the company's engineering, manufacturing and rolling stock maintenance division.
Sources & References
- Transnet partners with German bank.pdf
- Transnet gets R3bn loan from four banks
- Transnet Annual Results - press statement -30 June 2014.doc
- Transnet 2014 Integrated report
- Transnet secures R3bn loan for locomotives
- Transnet gets R3bn loan from four banks
- Annual Financial Statements 2020
- Transnet_AFS_2018.pdf.17.08.pdf
- TRANSNET_AFS_2016.pdf
- Annual Financial Statements 2019
- Transnet ANNUAL FINANCIAL STATEMENTS 2015 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
Transnet SOC Ltd
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