Project ID: 1801

CDB provides $20 million loan to Reltel wireless Limited to facilitate its acquisition of Huawei equipment

Commitment amount

$ 40638981.70513407

Adjusted commitment amount

$ 40638981.71

Constant 2021 USD

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Nigeria

Sector

Communications (Code: 220)

Flow type

Loan

Level of public liability

Private debt

Infrastructure

No

Category

Intent

Commercial (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Commitment (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

2006-01-01

Description

In 2006, CDB and Reltel Wireless Limited — a private telecoms operator in Nigeria — signed a $20 million loan agreement. The proceeds from the loan were earmarked for the acquisition of telecommunication equipment from Huawei. Reltel Wireless Limited reportedly purchased three major switches for use in Lagos, Port Harcourt and in the capital Abuja. At the time that this loan agreement was signed, Reltel Wireless Limited had an installation capacity of 1.2 million subscribers, making it the largest fixed wireless operator in the country, where it served the key Nigerian cities of Lagos, Port Harcourt, Nnewi and Onitsha. Promptly after this deal, an India-based communications corp bought a majority stake in Reltel Wireless Limited.

Additional details

Some source suggests that Huawei provided vendor financing (I.e. a supplier credit to Reltel Wireless Limited, and the CDB in turn provided an export seller’s credit to Huawei.

Number of official sources

0

Number of total sources

7

Download the dataset

Details

Cofinanced

No

Direct receiving agencies [Type]

Reltel Wireless Ltd. [Private Sector]

Implementing agencies [Type]

Huawei Technologies Co., Ltd. [Private Sector]

Loan Details

Bilateral loan

Investment project loan