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

In August 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). Cell C was expected to use the money help 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

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 completion, Cell C defaulted on the loan in 2020.

Number of official sources

3

Number of unofficial sources

3