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Overview

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

Commitments (Constant USD, 2023)$340,949,144
Commitment Year•2011Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 9, 2011

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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CDB provided a loan (Facility IV) to Reliance Communications for unspecified purposes. More detailed locational information can be found at: https://www.openstreetmap.org/way/130988088

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

  • Reliance Communications Ltd.

Implementing agencies

Private Sector

  • Reliance Communications Ltd.

Loan description

CDB provides $300 million loan (Facility IV) to Reliance Communications for unspecified purposes

Interest rate (t₀)•2.6615%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

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.

Staff comments

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.