Overview

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

Commitments (Constant USD, 2023)$37,530,322

Commitment Year•2006Country of Activity•NigeriaDirect Recipient Country of Incorporation•NigeriaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2006

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

Zoomobile (formerly Reltel Wireless Ltd.)

Implementing agencies

Private Sector

Huawei Technologies Co., Ltd.

Loan desecription

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

Interest type•Unknown

Narrative

Full Description

Project narrative

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.

Staff comments

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.