ICBC participates in $400 million syndicated loan to TDB for trade financing, project and infrastructure financing, debt refinancing, and general corporate purposes in October 2016 (Linked to Record ID#98649)

📋 Staff Comments

1. The Eastern and Southern African Trade and Development Bank (“PTA Bank” or the “Bank”) was established on 6th November, 1985 pursuant to the provisions of Chapter 9 of the Treaty (1981) establishing the Preferential Trade Area for the Eastern and Southern African States (PTA) which was later transformed into the Common Market for Eastern and Southern Africa (COMESA). The Bank is an African development financial institution and is the financial arm of COMESA. Although the Bank is a COMESA institution, its membership is open to non-COMESA States, non-regional countries, as well as institutional shareholders. The Bank’s mission is to be at the forefront of providing development capital, through customer-focused and innovative financing instruments backed by competitively priced funds. The Bank provides Project & Infrastructure Finance and Trade Finance as its core products and services. These products and services are available to businesses and enterprises incorporated and doing business in the PTA Bank Member States. The Bank has also successfully issued local currency bonds in Uganda, Kenya, and Tanzania, with the proceeds of the bonds being invested in the respective countries of issuance. The Chinese government is the largest shareholder in the Bank, with a 9.3% shareholding.
2. The precise size of the contribution of ICBC to the loan syndicate is unknown. For the time being, AidData assumes equal contributions to the $400 million loan ($22,222,222) across the 18 known participants in the loan syndicate.
3. The size of each loan tranche is unknown. As such, AidData has estimated the loan’s maturity by taking the average of a 2-year maturity and a 3-year maturity. 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.

📚 Sources & References

• Daily Roundup
• PTA Wins on pricing and tenor in $400m loan refi
• Afrexim sets RFP at $750m
• PTA rolls on
• PTA Bank 2016 - Closing Press Release (FINAL) (1) 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.