Bank of China loans Transnet ZAR 1.5 billion for interest rate swap

$1.5M USD

Funder	Bank of China (BOC)
Recipient Organization	Transnet SOC Ltd
Country	South Africa
Start Date	Jan 01, 2020
End Date	Sep 13, 2029
Duration	3,543 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`93688`

Grant Description

Bank of China loans Transnet ZAR 1.5 billion for interest rate swap According to the annual Financial Statement of Transnet in 2020, as of March 31, 2020, South African state-owned transportation company Transnet was party to an interest rate swap contract for ZAR 1.5 billion with the Bank of China.

The hedge interest rate payable by Transnet is 12.27%. The receivable interest rate is 3-month JIBAR (Johannesburg Interbank Average Rate) plus 2.7%. The maturity date for this transaction is December 2, 2030. The transaction was part of Transnet's Second Defined Benefit Fund for employee pensions.

📋 Staff Comments

1. Transnet participated in two interest rate swaps with the Bank of China in 2020. The first project is captured in project ID#93687 and has a payable rate of 11.83% and a receivable rate of JIBAR + 2.7%. This is a separate project with a payable rate of 12.27% and a receivable rate of JIBAR + 2.7%.

📚 Sources & References

Annual Financial Statements 2020 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.