Active Development AidData Chinese Aid

CDB provides $600 million loan to National Bank of Egypt for unspecified purposes in 2021

$600K USD

Funder	China Development Bank (CDB)
Recipient Organization	National Bank of Egypt (S.A.E.)
Country	Egypt
Start Date	Dec 01, 2021
End Date	Feb 24, 2032
Duration	3,737 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97795`

Grant Description

CDB provides $600 million loan to National Bank of Egypt for unspecified purposes in 2021 In December 2021, China Development Bank and the National Bank of Egypt (NBE) — a state-owned Egyptian bank — signed a $600 million loan agreement. The purpose of the loan is unknown.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following borrowing terms: a 3 year maturity

📅 Maturity3 years

⏳ Grace Period3 years

The borrower is responsible for repaying the entirety of the loan’s principal in a single, lump sum (bullet payment) at maturity (December 2024). It is also responsible for making semi-annual interest payments from June 2022 to December 2024.

📋 Staff Comments

Upon request from AidData, a confidential source with direct knowledge of the transaction has confirmed the loan's face value, commitment date, interest rate, grace period, and final maturity date.
The face value, commitment date, interest rate, grace period, and final maturity date of the loan identified in this record is consistent with the data that the Government of Egypt has voluntarily disclosed to the World Bank through the Debtor Reporting System (DRS).
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.
In April 2023, CDB reported that it had made a $300 million loan disbursement to NBE to support 49 small and medium-sized enterprise development and infrastructure construction project. It is unclear if this disbursement was made under the December 2021 loan agreement with CDB or another agreement. This issue warrants further investigation.
NBE’s annual financial statements can be accessed via https://www.nbe.com.eg/NBE/E/#/EN/FinancialIndicators.

📚 Sources & References

Raghda joined the Banking & Finance team in Sharkawy & Sarhan in 2022 as a junior associate.
China Development Bank lends USD300mln to support Egypt's SMEs, infrastructure construction
China Development Bank lends USD300mln to support Egypt's SMEs, infrastructure construction
IDS Average Interests Rates
CDB issues $300m in credit to Egypt
National Bank of Egypt (S.A.E) The Separate Financial Statements
中国国家开发银行实现对埃及国民银行3亿美元授信全额发放
DRS Official Commitments from China Through 2021
National Bank of Egypt 2018/2019
IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments 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.