China Construction Bank contributes to $127 million syndicated loan for purchasing Huawei equipment and rolling out 8ta mobile network (linked to Record ID#59391, #100729)

Project narrative

In January 2011, a consortium of eight banks signed a $127 million syndicated loan agreement with Telkom SA Limited (or “Telkom”) — a South African telecommunications company — for developing its mobile network in South Africa. The banks included China Development Bank (CDB), Bank of China (BOC), China Construction Bank (CCB), Barclays Capital, Absa Capital, Citibank, HSBC and the Sumitomo Mitsui Banking Corporation. China Export and Credit Insurance Corporation (Sinosure) provided insurance for the syndicated loan. The borrowing terms include a 7-year maturity but the other borrowing terms are unknown. The facility is was expected to be fully utilized during the 2012 financial year and repayable over a 5-year period. Record ID#59391 captures the estimated financial commitment of China Development Bank, Record ID#100729 captures the estimated financial commitment of Bank of China, and Record ID#100730 captures the estimated financial commitment of China Construction Bank. The loan proceeds were earmarked for the purchase of telecommunications equipment from Huawei and for capital expenditures to support the rollout of the company’s 8ta mobile network. Further implementation details are unknown.