Completed Mixed AidData Chinese Aid

ICBC contributes to $320.5 million credit facility to Eastern and Southern African Trade and Development Bank (Linked to Record ID#91931)

$64.1M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Eastern and Southern African Trade and Development Bank (TDB)
Country	Africa, regional
Start Date	Oct 01, 2014
End Date	Dec 08, 2028
Duration	5,182 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`98649`

Grant Description

ICBC contributes to $320.5 million syndicated credit facility to Eastern and Southern African Trade and Development Bank in October 2014 In October 2014, ICBC participated (as an arranger) in a $320.5 million syndicated credit facility (loan) agreement with the Eastern and Southern African Trade and Development Bank (PTA).

📋 Loan / Grant Terms

💰 Loan Amountcarried a maturity of 2 years and an interest rate of 2

It was the Eastern and Southern African Trade and Development Bank's second-ever syndicated loan.

The other arrangers of the loan agreement were Commerzbank, Mashreqbank, Standard Chartered, and Sumitomo Mitsui Financial.

Then, on October 5, 2016, the Southern African Trade and Development Bank (TDB) signed a $400 million syndicated loan facility agreement with a group of 18 banks (as captured via Record ID#91931).

The borrower was expected to use the loan proceeds to (i) repay a short-term facility that refinanced the borrower’s 2014 $320,500,000 syndicated term loan (captured via Record ID#98649) and (ii) for trade financing, project, and infrastructure financing, and for general corporate purposes.

📋 Staff Comments

AidData has calculated the all-in interest rate by adding average 6-month LIBOR (0.363% in October 2014) + basis points (250=2.5%) = 2.863% (interest rate of LIBOR plus a margin of 250 basis points).
Since no further information was discoverable, AidData estimates the transaction amount (i.e. the amount contributed by ICBC) to be the total loan amount divided equally by each member of the loan syndicate ($320,500,000/5=$64,100,000).

📚 Sources & References

PTA picking leads for $320m loan refinancing 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.