Completed Development AidData Chinese Aid

ICBC Standard Bank contributes to EUR 577 million syndicated loan to help Ivorian Refining Company (SIR) refinance its debts and invest in current operations

€77M EUR

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Cote d'Ivoire Refining Company (SIR)
Country	Cote d'Ivoire
Start Date	Dec 01, 2018
End Date	Mar 30, 2026
Duration	2,676 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`66167`

Grant Description

ICBC contribution to EUR 577 million syndicated loan for debt refinancing and investment purposes In 2017, AFC was appointed by the Government of Cote D’Ivoire — represented by the Ministry of Finance, the Ministry of Energy, the Ministry of Budget and Société Ivoirienne de Raffinage (SIR) — as Sole Mandated Lead Arranger (MLA) to raise a long term debt facility of approximately EUR 670 million to uniformly extend the tenor and reduce the interest rate of the SIR’s existing liabilities.

Then, in December 2018, Société Ivoirienne de Raffinage (SIR) — an oil refinery in Abidjan that is majority-owned by the Government of Cote D’Ivoire and a number of international oil companies — signed an EUR 577 million (CFA 378.5 billion) syndicated loan agreement with six banks.

The members of the lending syndicate included Africa Finance Corporation (AFC), Deutsche Bank, ICBC Standard Bank, United Bank for Africa, NSIA Bank, and Bridge Bank. AFC — the sole mandated lead arranger — contributed EUR 192 million.

The syndicated loan, which is structured as levy-backed senior secured debt, has a euro tranche with a 9-year maturity and a West African CFA franc tranche with a 7-year maturity.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower (SIR) was to use the proceeds of the loan to (a) refinance its debts, (b) invest in current operations, and (c) support modernization work on its 76,300-b/d refinery in Vridi district of Abidjan. The Government of Cote D’Ivoire issued a sovereign guarantee in support of the loan.

SIR is the sole oil refinery in Cote d’Ivoire and it is charged with the responsibility for refining crude oil, and sale of resulting products to the local Ivorian market, and for export to West African countries and the international market.

It has an annual output of 3.8 million tons of refined crude oil products, making it the largest crude oil refinery in West Africa. It is considered to be one of Cote d'Ivoire's most strategic assets.

📋 Staff Comments

The monetary value of ICBC Standard Bank’s contribution to the EUR 577 million syndicated loan is unknown. However, it is known that AFC contributed EUR 192 million, so for the time being, AidData assumes that the other members of the syndicate (including ICBC Standard Bank) contributed equal amounts (EUR 77 million).
This loan is coded as collateralized because it is described by the sole Mandated Lead Arranger as levy-backed senior secured debt.
Norton Rose Fullbright and Billé-Aka, Brizoua-Bi & Associés were the counsels for the lenders.
One source refers to the purpose of the loan as to ‘repay historical obligations on crude oil supply, provide a long tenured facility and reduce the interest rate of SIR's stock debt.’ 5. ICBC Standard Bank, Plc is majority owned by the Industrial and Commercial Bank of China Limited (ICBC).
According to the Ivorian Government's 2017 bond prospectus, '[t]he repayment of this loan will be backed in part by the ongoing fuel surcharge (soutien à la marge) granted by the government to SIR. This surcharge will be consolidated in the budget and the Government will transfer its proceeds as a subsidy to SIR.' See https://www.dgf.gouv.ci/images/app/emissions/132/prospectuseurobond080617.pdf

📚 Sources & References

Un prêt de 577 millions d’euros accordé à la SIR
Côte d’Ivoire : AFC arrange un prêt de 378 milliards FCFA pour la SIR
Côte d’Ivoire’s SIR financing highlights innovations in Africa’s debt markets
ANNUAL REPORT AND FINANCIAL STATEMENTS 2019
AFC ANNOUNCES THE SUCCESSFUL CLOSING OF A €577 MILLION SYNDICATED DEBT FACILITY TO CÔTE D’IVOIRE’S SOCIÉTÉ IVOIRIENNE DE RAFFINAGE
Ivory Coast secures loan to support refinery revamp
Ivory Coast’s SIR Oil Refinery receives $660 million loan from AFC
AFRICA FINANCE CORPORATION U.S.$3,000,000,000 Global Medium Term Note Programme, 2018 Annual Report & Financial Statements
Gide, counsel on refinancing the Société Ivoirienne de Raffinage (SIR) debt of 577 million euros
AFC arranges €577 million loan for Ivorian Refining Company
Harnessing Financial Resources for Infrastructure Development
Third Party Research Disclosures
US$8,000,000,000 Euro Medium Term Note Programme
THE REPUBLIC OF CÔTE D’IVOIRE 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.