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Overview

China Development Bank provides a $500 million USD loan to VimpelCom Amsterdam to finance equipment purchases from Huawei

Commitments (Constant USD, 2023)$541,908,917
Commitment Year•2012Country of Activity•NetherlandsDirect Recipient Country of Incorporation•NetherlandsSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 20, 2012
Last repayment (originally scheduled)
Dec 21, 2020

Geospatial footprint

Map overview

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This project was a loan facility agreement to finance the purchase of equipment from Huawei with Dutch company VimpelCom Amsterdam B.V., now known as Veon Amsterdam B.V., headquartered at Claude Debussylaan 88, 1082 MD Amsterdam, Netherlands. More detailed locational information can be found at: https://www.openstreetmap.org/way/52156815

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 Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • VEON Amsterdam B.V. (formerly VimpelCom Amsterdam B.V.)

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

Guarantors

Private Sector

  • OJSC VimpelCom

Loan description

China Development Bank provides a $500 million USD loan to VimpelCom Amsterdam to finance equipment purchases from Huawei

Interest rate (t₀)•3.81025%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•8 years

Narrative

Full Description

Project narrative

On December 20, 2012, China Development Bank Corporation (CDB) entered into a $500.0 million USD term loan facility agreement with VimpelCom Amsterdam B.V. — a Netherlands-incorporated telecommunications provider wholly-owned by Bermuda-incorporated VimpelCom Ltd. — to finance equipment purchases from Huawei. This vendor financing loan carried a maturity period of eight years and a final maturity date of December 21, 2020 and an interest rate of 6-month LIBOR plus a margin of 3.30%. OJSC VimpelCom — the Russia-incorporated and based subsidiary of VimpelCom Holdings B.V., a Netherlands-incorporated wholly-owned subsidiary of VimpelCom Amsterdam (100% minus one share) and VimpelCom Ltd. (one share) — issued a guarantee for the borrower's payment obligation. The proceeds were to be used by the borrower's subsidiaries to finance equipment purchases from Huawei Technologies Co., Ltd. and its affiliates. On May 31, 2013, the borrower drew down $41 million USD. On September 25, 2013, the borrower drew down $62 million USD. On January 28, 2014, the borrower drew down $104 million USD. On March 26, 2014, the borrower drew down $71 million USD. On June 20, 2014, the borrower drew down $65 million USD. On September 22, 2014, the borrower drew down $57 million USD. On December 18, 2014, the borrower drew down $99 million USD. As of December 18, 2014, the facility was fully utilized. As of December 31, 2014, $498.3 million USD was outstanding under the loan. As of June 30, 2017, $291 million USD was outstanding under the loan. As of December 31, 2017, $249.14 million USD was outstanding under this loan. Then, on March 26, 2018, the borrower fully repaid the loan.

Staff comments

1. VimpelCom, later renamed VEON, is an international telecoms company operating in 14 countries and headquartered in Amsterdam. It provides voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, Pakistan, and Zimbabwe. VimpelCom’s operations around the globe cover territory with a total population of approximately 739 million people. VimpelCom provides services under the "Beeline", "Kyivstar", “WIND”, "Infostrada" “Mobilink”, “banglalink”, “Telecel”, and “Djezzy” brands.