Active Commercial AidData Chinese Aid

Bank of China contributes $10 million to 5-year tranche of $1 billion syndicated loan to South African Reserve Bank (Linked to Record ID#72472, #72493, and #72471)

$10M USD

Funder	Bank of China (BOC)
Recipient Organization	South African Reserve Bank (SARB)
Country	South Africa
Start Date	Jul 09, 2002
End Date	Jan 30, 2031
Duration	10,432 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`72492`

Grant Description

In 2002, Bank of China and China Construction Bank contribute to USD 1 billion syndicated loan to South African Reserve Bank On July 9, 2002, the South African Reserve Bank announced that it had entered into a $1 billion loan facility agreement with a syndicate of banks. The loan was divided into two tranches: a three year tranche and a five year tranche.

The syndicate had 3 types of lenders who committed differing amounts.

Mandated Lead Arrangers committed $53 million, Lead Arrangers committed $32.75 million, and Arrangers committed $20 million. As an arranger, Bank of China committed $20 million of debt. These funds were divided equally between the two tranches.

📋 Loan / Grant Terms

📅 Maturity3 years

📋 Loan / Grant Terms

📅 Maturity5 years

As an arranger, China Construction Bank committed $53 million: $26.5 million to the 3-year tranche and $26.5 million to the 5-year tranche. The borrower was able to draw down on both tranches in USD and/or Euro.

The proceeds of the syndicated loan were to be used by the borrower to finance the early repayment of a $1 billion syndicated loan that was contracted in 2000 and set to mature in 2003. Bank of China's contribution to the 3-year tranche is recorded in Record ID#72471. Bank of China's contribution to the 5-year tranche is recorded in Record ID#72492.

China Construction Bank’s contribution to the the 3-year tranche is recorded in Record ID#72472. China Construction Bank’s contribution to the the 5-year tranche is recorded in Record ID#72493.

📋 Staff Comments

1. The South African Reserve Bank reports that the funds were to be 'equally divided' between the two tranches. Therefore it is assumed that Bank of China's contributions and China Construction Bank’s contributions were were split evenly across the 3-year and 5-year tranches.

📚 Sources & References

Statement issued by Mr T.T. Mboweni on the occasion announcing the successful syndication of the South African Reserve Bank’s USD1 billion Dual Tranche Term Loan Facility
Chinese Loans to Africa Database
Statement issued by Mr T.T. Mboweni on the occasion announcing the successful syndication of the South African Reserve Bank’s USD1 billion Dual Tranche Term Loan Facility 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.