Overview

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

Commitments (Constant USD, 2023)$433,527,134

Commitment Year•2012Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 26, 2012

First repayment: Dec 26, 2014

Last repayment: Dec 24, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Private Sector

Türk Telekom

Loan desecription

China Development Bank provides $400 million buyer's credit loan to Türk Telekom for long-term financing purposes

Grace period•2 yearsGrant element•22.1287%Interest rate (t₀)•3.91025%Interest type•Variable Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

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 Record 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.

Staff comments

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.