Completed Development AidData Chinese Aid

CDB provides $25 million loan to Development Bank of Ethiopia for on-lending to SMEs

$25M USD

Funder	China Development Bank (CDB)
Recipient Organization	Development Bank of Ethiopia (DBE)
Country	Ethiopia
Start Date	Jan 11, 2013
End Date	Dec 16, 2030
Duration	6,548 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`59661`

Grant Description

CDB provides $25 million loan to Development Bank of Ethiopia for on-lending to SMEs On January 11, 2013, China Development Bank signed a $25 million 'special loan facility' agreement with the Development Bank of Ethiopia to support small and medium sized enterprise (SME) development.

📋 Loan / Grant Terms

📅 Maturity9.36 years

⏳ Grace Period2.86 years

The loan's first and last scheduled principal payment dates were November 20, 2015 and May 20, 2022, respectively. Its first and last scheduled interest payment dates were May 20, 2013 and May 20, 2022, respectively. The borrower was responsible for repaying the loan in semi-annual installments between November 2015 and May 2022.

Although the loan reached maturity in 2022, it is unclear if the borrower met all of its repayment obligations by the time the loan reached maturity.

📋 Staff Comments

The proceeds of this loan were most likely lent by the Development Bank of Ethiopia to SMEs.
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 loan identification number in the Government of Ethiopia’s Debt Management and Financial Analysis System (DMFAS) is 20835000, and the corresponding project name in DMFAS is ‘SPECIAL FACILITY AGREEMENT -DBE’. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=04. DMFAS identifies the loan commitment date as December 19, 2012, rather than January 11, 2013. This issue warrants further investigation. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=05. As of September 2024, the Government of Ethiopia recorded the loan's all-in interest rate as 4.58% in DMFAS. See https://www.dropbox.com/scl/fi/7nrczfanixvivmiyzqx3i/MOFED-Loan-Level-Data-on-Borrowing-Terms-and-Loan-Performance-September-2024_OTHER_PUBLIC.xlsx?rlkey=5sqhh9ii4t3x8cmz0jf6s7cod&dl=0

📚 Sources & References

Public Sector Debt Statistical Bulletin 1 - 22
Development Bank of Ethiopia (DBE) and China Development Bank Corporation (CDB) sign a loan agreement to finance SMEs in Ethiopia
Rising Powers and South-South Cooperation
Public Sector Debt Statistical Bulletin No. 11
Public Sector Debt Statistical Bulletin No. 10
国家开发银行与埃塞开发银行签署2500万美元中小企业发展专项贷款协议
DBE AUDITOR’S REPORT AND FINANCIAL STATEMENTS 30 JUNE 2022
DEVELOPMENT BANK OF ETHIOPIA INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS 30 JUNE 2023
Development Bank of Ethiopia Annual Report For the Year Ended June 30, 2013
Development Bank of Ethiopia Annual Report For The Year Ended June 30, 2014
Perspectives on Development Banks in Africa
DBE Annual Report 2018
Delevopment Bank of Ethiopia Annual Report 2020-21
Annual Report For the Year Ended June 30, 2015
Development Bank of Ethiopia Annual Report For the Year Ended June 30, 2016
Development Bank of Ethiopia Annual report for the year ended June 30, 2017
DBE Independent Auditor's Report and Financial Statements 30 June 2020
List of Ethiopia- China Cooperation Major Projects from Ethiopia's Ministry of Finance September 2024
MOFED Loan-Level Data on Borrowing Terms and Loan Performance September 2024_OTHER_PUBLIC 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.