Narrative
Full Description
Project narrative
On June 13, 2011, Vodafone Ghana signed a syndicated debt financing deal with a diverse group of commercial banks and development finance institutions (including China Eximbank, China Development, DEG (a subsidiary of KfW), Barclays, Ecobank, Rand Merchant Bank and Standard Bank) for a Fiber Optic Network Expansion Project. The deal included $82 million in syndicated, parallel loans from China Eximbank, China Development Bank and DEG and $33 million in B loans from Barclays, Ecobank, Rand Merchant Bank and Standard Bank. The International Finance Corporation (IFC), which provided Vodafone Ghana with a $100 million loan in 2010, acted as the lead arranger and served as the administrative agent for the project. China Development Bank and China Eximbank both reportedly contributed $22.733 million to the loan syndicate. Record ID#57637 captures the $27.33 million contribution from China Eximbank, and #72801 captures the $27.33 million contribution from China Development Bank. The loan proceeds were used by Vodafone Ghana to upgrade technology, increase capacity, and extend mobile phone and broadband coverage to rural and semi-urban areas by expanding its fiber optic network. This project reached the implementation stage, but it is not clear if or when the project was completed. The Government of Ghana has held a 30% equity stake in Vodafone Ghana since 2008 (when Vodafone bought a 70% equity stake in Ghana Telecom, the state-owned telecommunication operator). As of 2011, Vodafone Ghana was the only vertically integrated fixed-line and mobile telecoms provider in a country with teledensity of 54%.