Completed Mixed AidData Chinese Aid

Bank of China contributes $90 million to $410 million syndicated ‘B’ loan to support Transnet’s 5-year capital investment program

$90M USD

Funder	Bank of China (BOC)
Recipient Organization	Transnet SOC Ltd
Country	South Africa
Start Date	Oct 01, 2011
End Date	Jan 05, 2027
Duration	5,575 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97770`

Grant Description

In 2011, Bank of China contributes to USD 410 million syndicated ‘B’ loan to support Transnet’s 5-year capital investment program, South Africa In October 2011, Transnet State-Owned Company Limited (‘Transnet’) — an integrated transport and logistics company that is 100% owned by the Government of South Africa (GoSA) — signed a A-loan agreement (worth ZAR 2,703,000,000 or $400 million) with the African Development Bank (AfDB) and a B-loan agreement (worth $410 million) with a syndicate of five banks (Bank of China, Bank of Tokyo Mitsubishi, SMBC, Mizuho, HSBC) to finance its 5-year capital investment program.

📋 Loan / Grant Terms

💰 Loan Amountcarried a 10 year maturity and a 2 year grace period

📅 Maturity10 years

⏳ Grace Period2 years

The borrower was expected to use the proceeds of the loan to finance the company’s capital investment program, which sought to revitalize and expand existing infrastructure and address maintenance deficiencies, especially at Transnet Freight Rail.

Contributions to the B-loan included $90 million from Bank of China, $70 million from BTMU, $110 million from SMBC, $90 million from Mizuho, and $50 million from HSBC.

📋 Staff Comments

1. Transnet is 100% owned by the Government of South Africa (GoSA), but is legally and financially autonomous. It's responsible for ensuring that the country’s transport and logistics system operates according to international standards.

📚 Sources & References

CLOSING REMARKS
EVALUATION OF LOAN SYNDICATION AT THE AFRICAN DEVELOPMENT BANK GROUP
PRIVATE SECTOR SYNDICATION AND CO-FINANCING October 2018 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.