Project ID: 38142

China Development Bank provides $300 million loan to Oi to purchase Huawei equipment

Commitment amount

$ 450603014.4824376

Adjusted commitment amount

$ 450603014.48

Constant 2021 USD

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Brazil

Sector

Communications (Code: 220)

Flow type

Loan

Level of public liability

Private debt

Infrastructure

No

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2009-02-01

Actual complete

2016-02-01

Description

In February 2009, Brazilian telecommunications company Oi (formerly Telemar Norte Leste SA) signed a $300 million loan agreement with China Development Bank (CDB) to purchase Huawei equipment. The borrowing terms include a 5-year maturity, an interest rate of LIBOR plus 250 basis points, and a 2-year grace period. Interest was payable semi-annually in arrears through maturity in February 2016. The outstanding principal amount of these loans was payable in 11 equal semi-annual installments commencing in April 2011 and terminating upon maturity in February 2016. In 2009, CDB disbursed $227 million and in 2010 it disbursed $52 million through this loan. On December 31, 2012, the (principal) amount outstanding under the loan agreement was $191 million. The purpose of this loan was to improve broadband services, support capital expenditures, upgrade telecommunications infrastructure, and improve mobile operations by purchasing telecommunications equipment from Huawei. money will be allocated to fixed line and broadband services and mobile operations.

Additional details

1. AidData has estimated the all-in interest rate as follows: 1.757% (6 Month average USD LIBOR in February 2009) + 2.5% (given margin) = 4.257%

Number of official sources

1

Number of total sources

8

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Oi (Telemar) [Private Sector]

Implementing agencies [Type]

Huawei Technologies Co., Ltd. [Private Sector]

Loan Details

Maturity

5 years

Interest rate

4.257%

Grace period

2 years

Grant element (OECD Grant-Equiv)

15.8116%

Bilateral loan

Investment project loan