China Eximbank provides buyer’s credit loan for GECOMSA Telecommunications Project (Linked to Project ID#484)
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Communications (Code: 220)
Export Buyer's Credit
In 2006, China Eximbank and the Government of Equatorial Guinea signed a $2 billion oil-backed buyer’s credit facility agreement for various infrastructure projects (captured in Project ID#484). All subsidiary loans approved under this facility agreement carry the following terms: a 5.5% interest rate, 5 year maturity, and 2 year grace period.In 2012, China Eximbank and the Government of Equatorial Guinea subsequently signed a subsidiary buyer’s credit loan agreement for the GECOMSA Telecommunications Project. The face value and the borrowing terms of this loan are unknown. The purpose of the project was to establish a telecoms joint venture called Guinea Ecuatorial Comunicaciones Sociedad Anónima (GECOMSA). In January 2012, GECOMSA was launched, becoming the third telecommunications operator in Equatorial Guinea (see '赤道几内亚国家概况'). During the presentation of this company, the director Maria del Mar Bindang Eneme, reported that 51% of the shares in GECOMSA are held by the Government of Equatorial Guinea and 49% are held by the Chinese company ZTE (see '赤几第三家电信运营商赤道几内亚通讯有限公司（GECOMSA）开业'). GECOMSA was created to overcome the shortcomings that are occurring in the telecommunications sector and is the third communication company in Equatorial Guinea. The inauguration ceremony for GECOMSA was attended by, among others, the Minister of National Security, Nicolas Obama Nchama, the Minister of Internal Affairs and Local Corporations, Clemente Engonga Nguema Onguene, and the Chinese Ambassador to Equatorial Guinea, Wang Shixiong. GECOMSA officially opened on February 1, 2012 (see '经济及市场环境”).
The Chinese project title is 兴公司和赤几政府共同投资成立的赤几通信公司（GECOMSA).This loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Equatorial Guinea Communications Corporation [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
Government of Equatorial Guinea [Government Agency]; ZTE Corporation [State-owned Company]
The buyer's credit loans under the $2 billion USD facility were secured via deposit accounts opened by Government of Equatorial Guinea in China Eximbank. The Government of Equatorial Guinea deposited the proceeds from hydrocarbon exports into these accounts.A repayment guarantee equivalent to 30 percent (minimum) of the outstanding stock of debt was required to be in the accounts at all times.