China Development Bank provides $400 million buyer's credit loan to Türk Telekom for long-term financing purposes (Linked to Project ID#41608)

On December 26, 2012, China Development Bank (CDB) and Türk Telekomünikasyon A.Ş. (“Türk Telekom”) — a private telecommunications company — signed two loan agreements. The first loan (captured via 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 preferential buyer's credit loan (as captured in this project) 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.

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0

Number of total sources

5