Overview

China Development Bank provides USD $31 million to finance Millicom’s equipment purchases from Huawei

Commitments (Constant USD, 2023)$51,508,501

Commitment Year•2007Country of Activity•ChadDirect Recipient Country of Incorporation•ChadSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 1, 2007

Start (actual): May 1, 2007

End (actual): Jan 1, 2013

First repayment (originally scheduled): Jan 1, 2007

Last repayment (originally scheduled): Dec 31, 2011

Stakeholders

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

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

Private Sector

Millicom Tchad S.A.

Implementing agencies

Private Sector

Huawei Technologies Co., Ltd.

Guarantors

Private Sector

Millicom, Inc.

Loan description

China Development Bank provides USD $31 million to finance Millicom’s equipment purchases from Huawei

Grant element•5.0163%Interest rate (t₀)•7.35%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In May 2007, Millicom Tchad S.A. — Millicom’s local affiliate in Chad — signed a $31 million loan agreement with China Development Bank to finance its equipment purchases from Huawei. This loan carried the following terms: an interest rate of LIBOR plus a 2% margin, a maturity of 5 years, and no grace period. The loan was 100% guaranteed by Millicom. Its (principal) amount outstanding was $21 million as of December 31, 2010, $7 million as of December 31, 2011, and $1 million as of December 31, 2012. The loan was repaid in full in January 2013.

Staff comments

1. AidData has estimated the loan’s all-in interest rate by adding 2% to 5.312% [May 2007 average USD LIBOR].” Add this source: https://www.millicom.com/media/1886/offering-memo-2020.pdf