China Development Bank provides a $55 million USD loan to Nordisk Mobiltelefon AB to fund the expansion of its CDMA450 mobile network

Project narrative

In August 2007, China Development Bank Corporation (CDB) issued a $55 million USD (kr376 million SEK) loan to Nordisk Mobiltelefon AB (publ) (NMT) — a Sweden-incorporated telecommunications and mobile broadband services provider working in Sweden, Norway, Denmark, Poland, and Ireland — to fund the expansion of its CDMA450 mobile network in Sweden. The proceeds were to be used by the borrower to finance the expansion of its CDMA450 mobile network in Sweden; CDB reportedly issued the loan because NMT purchased network infrastructure and mobile terminals from Huawei Technologies Co., Ltd.. In November 2008, Nordisk Mobiltelefon was obliged to apply for restructuring of its operations in Norway and Sweden. It had debts of kr433.7 million SEK, with 90% of that debt owned to CDB, Huawei, and Teracom; kr145.4 million SEK was owed to CDB, kr78.1 million SEk was supplier debt, and kr199.6 million SEK were vendor financing-related debt In December 2008, representatives of the law firm responsible for the restructuring of Nordisk Mobiltelefon met with CDB and Huawei to seek approval for the purchase of the company by American company Access Industries, Inc. in secret negotiations. In February 2009, NMT's Norwegian and Swedish operations went into bankruptcy. In March 2009, Access Industries purchased Nordisk Mobiltelefon.