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Overview

ICBC provides loan worth 1.2 billion Indian rupees (ICBC Facility II) to help Reliance Tech Services Limited repay short-terms loans (linked to Record ID#56456)

Commitments (Constant USD, 2023)$20,165,093
Commitment Year•2014Country of Activity•IndiaDirect Recipient Country of Incorporation•IndiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 21, 2014
Last repayment (originally scheduled)
Dec 30, 2023

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • Reliance Tech Services Limited

Implementing agencies

Private Sector

  • Reliance Communications Ltd.

Guarantors

Private Sector

  • Reliance Communications Ltd.

Loan description

ICBC provides loan worth 1.2 billion Indian rupees (ICBC Facility II) to help Reliance Tech Services Limited repay short-terms loans

Grant element•29.5856%Interest rate (t₀)•1.578%Interest type•Variable Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

On July 21, 2014, the Industrial & Commercial Bank of China (ICBC) provides 1.2 billion Indian rupee working capital loan to Reliance Tech Services Limited, a subsidiary of Reliance Communications. Most of the loan proceeds were to be used to repay Reliance's short-term loans. Reliance Communications guaranteed the loan. The loan carried the following terms: 10 year maturity and an interest rate of LIBOR plus a 1.25% margin. In February 2019, Reliance Communications filed for bankruptcy as it was unable to sell assets to repay its debts. Many creditors are now suing the Reliance Communications to recover unpaid debts. This project is linked to ICBC and Exim's 2012 $925.2 million USD loan for the construction of ICBC Facility I (#56456).

Staff comments

1. AidData has calculated the all-in interest rate (1.578%) by adding 1.25% to average 6-month LIBOR (0.328%) in the month when the loan agreement was signed (July 2014).