China Development Bank provides EUR 240 million loan to Cell C to help it restructure and refinance its debts

On August 24, 2010, South African mobile operator Cell C Limited (or “Cell C”) signed a EUR 240 million loan agreement with China Development Bank. Drawdowns from this facility were reportedly only made available after Cell C met certain conditions (which were not described). The loan agreement was amended on June 29, 2011, September 27, 2011 and December 31, 2012. Cell C was expected to use the proceeds of the loan to restructure its debt and refinance a portion of its euro-denominated senior secured notes. Cell C reportedly drew down the entire facility, which was 100% guaranteed by Oger Telecom Limited. The loan has an interest rate of 4.395% (3M Average Euribor in August 2010: 0.895 + 3.5 = 4.395%). In January 2020, Cell C defaulted on a R2.7 billion loan as well as capital plus interest payments on loan facilities from a number of banks, including China Development Bank.

Additional details

1. Although the loan was initially contracted in 2010 and it reached maturity in 2018, the year in which facility was actually made available is unknown, so the maturity is unknown. While the loan is coded as having reached completion, Cell C defaulted on the loan in 2020. 2. AidData has coded the loan as collateralized because an official source indicates that the ICBC loan ‘shared in the First Ranking Security Interests in the Collateral, on an equal and rateable basis with the Holders and the other Senior Lenders, on the terms set out in the Intercreditor Agreement.’ The same source identifies the property and assets of Cell C Limited as the underlying source of collateral.

Number of official sources

5

Number of total sources

9