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Overview

China CITIC Bank contributes to a 2010 €60 million EUR syndicated loan to Jazztel to support its network expansion

Commitments (Constant USD, 2023)$51,101,794
Commitment Year•2010Country of Activity•SpainDirect Recipient Country of Incorporation•United KingdomSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 31, 2010
Last repayment (originally scheduled)
May 30, 2013

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

  • China CITIC Bank Corporation Limited

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

2010 syndicated €60 million EUR loan from China CITIC Bank and others to Jazztel to support its network expansion in Spain

Interest rate (t₀)•2.989%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On May 31, 2010, a syndicate of two banks — China CITIC Bank Corporation Limited 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 Financia España, with these lease contracts having a minimum contract 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 200 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 signed on November 10, 2009, including the deployment of over 350,000 multi-service VDSL2/ADSL2+ bonding ports in more than 437 exchanges, the expansion of the data network and the transmission and installation of two new softswitches in the Jazztel network. The expansion was expected to increase the capacity, flexibility, and efficiency of Jazztel's network to meet the growth of its ADSL customer base. The loan was also expected to allow Jazztel to reduce operating cash consumption in the current fiscal year and focus its resources on the growth of its customer base. As of January 26, 2011, €41.9 million EUR had been drawn down under the loan, leaving €18.1 million EUR to be used to finance investments throughout 2011.

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 China CITIC Bank by assuming that each lender contributed an equal amount (€30,000,000 EUR) to the syndicated loan.