Active Development AidData Chinese Aid

China Eximbank contributes to $632 million syndicated loan tranche to Afreximbank for trade financing, general corporate, and refinancing purposes in May 2017 (Linked to Record ID#92383, #92385, #92395, #92396, and #92397)

$18.06M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	African Export-Import Bank (Afreximbank)
Country	Africa, regional
Start Date	May 30, 2017
End Date	Nov 18, 2033
Duration	6,016 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92380`

Grant Description

China Eximbank, ICBC, and BOC contributions to USD 1.16 billion dual-currency syndicated loan to Afreximbank for trade financing and general corporate purposes in May 2017 On May 30, 2017, the African Export-Import Bank (Afreximbank) signed a $1.16 billion syndicated loan facility agreement with a group of 35 banks for trade financing and general corporate purposes.

📋 Loan / Grant Terms

💰 Loan Amountconsisted of two tranches: a $632 million tranche with a maturity length between two and three years and an interest rate of LIBOR plus a 1

The proceeds were to be used to repay existing debt and to fund trade finance and general corporate purposes.

Standard Chartered Bank served as coordinator, bookrunner and agent for the facility and was supported by 13 initial mandated lead arrangers and bookrunners.

These are: Bank ABC (Arab Banking Corporation B.S.C.); Abu Dhabi Commercial Bank PJSC; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Barclays Bank Mauritius Limited; Sumitomo Mitsui Banking Corporation Europe Ltd.; Commerzbank Aktiengesellschaft Filiale Luxemburg; Emirates NBD Capital Limited; Rand Merchant Bank, a division of FirstRand Bank Limited (London Branch); HSBC Bank plc.; ICBC (London) plc.; Mizuho Bank Ltd.; National Bank of Abu Dhabi PJSC; and The Standard Bank of South Africa Limited, Isle of Man Branch.

The 13 initial mandated lead arrangers and bookrunners were joined at the general syndication stage by AKA Ausfuhrkredit; Axis Bank; Bank of China; Bank of Taiwan; Banque Misr; Commercial Bank of Kuwait; Export-Import Bank of China; First Commercial Bank; State Bank of India; Chang Hwa Commercial Bank; Land Bank of Taiwan; Mega International Commercial Bank Co.; Shanghai Commercial and Savings Bank; Barclays Bank Egypt; Ghana International Bank; KEB Hana Bank; Taipei Fubon Commercial Bank; The Export – Import Bank of the Republic of China; Export-Import Bank of Korea; and Federated Investors, Inc. as mandated lead arrangers and arrangers.

This project captures ICBC's contribution to the EUR 561 million tranche. Linked Record ID#92395 captures China Eximbank's contribution. Linked Record ID#92397 captures BOC's contribution. Linked Record ID#92380 captures China Eximbank's contribution to the $632 million tranche. Linked Record ID#92383 captures ICBC's contribution.

Linked Record ID#92385 captures BOC's contribution.

📋 Staff Comments

The exact sizes of the contributions from China Eximbank, ICBC, and Bank of China to the loan syndicate are unknown. For the time being, AidData assumes equal contributions to the dollar-denominated loan tranche ($18,057,142) and the euro-denominated loan tranche (EUR 16,028,571) across the 35 participants in the loan syndicate.
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. For this record, the margin was taken as the midpoint between the margin range. This applies to the dollar denominated tranche.
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 applies to the euro-denominated tranche.
AidData has estimated the maturity length of the dollar-denominated tranche by taking the midpoint between 2-years and three years.
For the time being, AidData assumes that all lenders participated in both tranches. This issue warrants further investigation.
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

Afreximbank Closes Record $632.9 Million and Euro 499.6 Million Syndicated Term Loan Facility
The GlobalCapital Loan Awards 2017_ the Nominations
Afreximbank signs its largest syndicated loan at $1.2bn 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.