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Overview

China Eximbank provides RMB 1.05 billion secured loan for +2 M HP Telecommunications Network Expansion Project

Commitments (Constant USD, 2023)$157,002,973
Commitment Year2020Country of ActivityMexicoDirect Recipient Country of IncorporationMexicoSectorCommunicationsFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 29, 2020
First repayment (originally scheduled)
Jun 29, 2022
Last repayment (originally scheduled)
Jun 28, 2027

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

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Total Play Telecomuincaciones, S.A. de C.V.

Guarantors

Private Sector

  • Corporación RBS, S.A. de C.V.

Collateral providers

Private Sector

  • Corporación RBS, S.A. de C.V.

Loan description

China Eximbank provides RMB 1.05 billion secured loan for +2 M HP Telecommunications Network Expansion Project

Grace period2 yearsGrant element14.9027%Interest rate (t₀)5.5%Interest typeFixed Interest RateMaturity7 years

Collateral

Corporación RBS, S.A. de C.V. pledge of shares in Grupo Elektra.

Narrative

Full Description

Project narrative

On June 29, 2020, the Shenzhen Branch of China Eximbank signed an RMB 1,050,000,000 secured loan agreement with Total Play Telecomunicaciones, S.A. de C.V. for the +2 M HP Telecommunications Network Expansion Project. The loan carries the following borrowing terms: a 7-year maturity, a 2-year grace period, and a 5.5% interest rate. The loan is backed by a guarantee agreement with Corporación RBS, S.A. de C.V. and a securities pledge agreement (contrato de prenda bursátil) with Corporación RBS, S.A. de C.V. over Grupo Elektra shares. The purpose of the project was to fund the purchase of goods and services for the expansion of the +2 M HP telecommunications network. As of June 30, 2020, the loan had not yet disbursed.

Staff comments

1. Total Play Telecomunicaciones, S.A. de C.V. is a Mexican telecommunications provider that offers Internet, telephony, on-demand movies, and television services over direct-to-home fiber optics network. It serves residential and business customers in Mexico. It is owned by Grupo Salinas -- a conglomerate involved in retail, banking and TV broadcasting, among other sectors, throughout Mexico -- and operated by Grupo Totalplay.