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Overview

Bank of China contributes to a 2011 €60 million EUR syndicated loan to Jazztel to support its network expansion

Commitments (Constant USD, 2023)$47,396,507
Commitment Year•2011Country of Activity•SpainDirect Recipient Country of Incorporation•United KingdomSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 25, 2011
Last repayment (originally scheduled)
Jan 24, 2014

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

Receiving agencies

Private Sector

  • Jazztel P.L.C.

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

Loan description

2011 syndicated €60 million EUR loan from BoC and others to Jazztel to support its network expansion in Spain

Interest rate (t₀)•3.079%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On January 25, 2011, a syndicate of two banks — the Bank of China (BOC) and Banco Bilbao Vizcaya Argentaria S.A. (Hong Kong) — for a €60 million EUR syndicated line of credit loan agreement with Jazztel P.L.C.— an England and Wales-incorporated holding company of Spanish broadband operator Jazz Telecom S.A., Jazzplat S.A., and Jazzplat Chile LTDA listed on the Spanish Continuous Market — to support its network expansion. The loan was be implemented through financial leasing contracts with BBVA Renting, S.A.U., which was responsible to channel the financing, with these lease contracts having a minimum drawdown of €10 million EUR, could be used for a maximum period of two years, had a maturity period of three years, and an interest rate of three-year swap EURIBOR plus a margin of 180 basis points (bps). The proceeds were to be used to finance Jazztel's network expansion and the deployment of new technologies provided by Huawei Technologies Co., Ltd. and was part of collaboration agreements for the financing of Huawei investments. The investments were expected to improve the coverage and efficiency of Jazztel's network, allowing it to match its customer base growth. The investments would allow Jazztel to increase the coverage, capacity, flexibility, and efficiency of its network and allow it to meet the growth of its ADSL and VDSL customer base and allow the borrower to reduce operating cash consumption in coming years.

Staff comments

1. The individual contributions of the two lenders to this €60 million EUR syndicated loan is unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount (€30,000,000 EUR) to the syndicated loan. 2. The average 3-year EURIBOR swap (drawn from https://www.investing.com/rates-bonds/eur-3-years-irs-interest-rate-swap-historical-data) for January 2011 was 2.347%. Therefore, the interest rate has been coded as 2.347% + 1.80% (180 bps) = 4.147%.