CDB provides $300 million loan (Facility IV) to Reliance Communications for unspecified purposes (Linked to Project ID #42654, #54348, #54349)

On March 9, 2011, China Development Bank (CDB) provided a $300 million loan ("Facility IV") to Reliance Communication for unspecified purposes. This loan carried a 2.661% interest rate (LIBOR plus 2.20% margin) but the maturity and grace period are unknown. As of December 31, 2014, $214 million of the principal amount was outstanding under this facility. In February 2019, Reliance Communications filed for bankruptcy as it was unable to sell assets to repay its debts. This project is linked to three other CDB loans to Reliance: $750 million USD in 2008, (Facility I) (#42654), $300 million USD in 2011, (Facility II) (#54348), and $1.33 billion in 2011 (Facility III) (#54349). All of these loans were probably used to stave off bankruptcy. Many creditors, including the CDB, are now suing the Reliance Communications to recover unpaid debts.

Additional details

1. AidData has estimated the all-in interest rate as follows: 0.461% (6-month average LIBOR in March 2011) + 2.20% (given margin) = 2.661% 2. Media reports suggest that Facility 2 and 4, amounting to 600 million USD was used to import telecom equipment from Huawei and ZTE.

Number of official sources

1

Number of total sources

4