China Development Bank provides $300 million loan to Oi to purchase Huawei equipment

Project narrative

In February 2009, Brazilian telecommunications company Oi (formerly Telemar Norte Leste SA) signed a $300 million loan agreement with China Development Bank (CDB) to purchase Huawei equipment. The borrowing terms include a 5-year maturity, an interest rate of LIBOR plus 250 basis points, and a 2-year grace period. Interest was payable semi-annually in arrears through maturity in February 2016. The outstanding principal amount of these loans was payable in 11 equal semi-annual installments commencing in April 2011 and terminating upon maturity in February 2016. In 2009, CDB disbursed $227 million and in 2010 it disbursed $52 million through this loan. On December 31, 2012, the (principal) amount outstanding under the loan agreement was $191 million. The purpose of this loan was to improve broadband services, support capital expenditures, upgrade telecommunications infrastructure, and improve mobile operations by purchasing telecommunications equipment from Huawei. money will be allocated to fixed line and broadband services and mobile operations.