China Development Bank provides $200 million buyer's credit loan to Türk Telekom for purchase of Huawei products and services (Linked to Project ID#41609)
Commitment amount
$ 234824711.58516902
Adjusted commitment amount
$ 234824711.59
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Türkiye
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Description
On December 26, 2012, China Development Bank (CDB) and Türk Telekomünikasyon A.Ş. (“Türk Telekom”) — a private telecommunications company — signed two buyer's credit loan agreements. The first loan (captured in Project ID#41608) had a face value of $200 million, a maturity of 8 years, a grace period of 30 months, and an interest rate of LIBOR (0.687% calculated as average 6-month LIBOR for 2012) + 285 basis points. The proceeds from this loan were to be used by the borrower to facilitate its acquisition of products and services from Huawei Technologies. The second loan (captured in Project ID#41609) had a face value of $400 million, a maturity of 8 years, a grace period of 2 years, and an interest rate of LIBOR (0.687% calculated as average 6-month LIBOR for 2012) + 340 basis points. The proceeds from this loan were to be used by the borrower to address its long-terms financing needs.
Additional details
1. Türk Telekom was a state-owned enterprise until it was privatized in 2005. In November 2005, 55% of Türk Telekom was sold to Oger Telecom's Joint Venture Group. 2. No sources explicitly state that this is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) proceeds from this loan were to be used by the borrower to facilitate its acquisition of Chinese products and services
Number of official sources
0
Number of total sources
5
Details
Cofinanced
No
Direct receiving agencies [Type]
Türk Telekom [Private Sector]
Implementing agencies [Type]
Huawei Technologies Co., Ltd. [Private Sector]
Loan Details
Maturity
8 years
Interest rate
3.537%
Grace period
3 years
Grant element (OECD Grant-Equiv)
24.5797%