Overview

China Development Bank provides $106 million loan to Oasis S.P.R.L. to finance its equipment purchases from Huawei

Commitments (Constant USD, 2023)$198,910,706

Commitment Year•2006Country of Activity•Democratic Republic of the CongoDirect Recipient Country of Incorporation•Democratic Republic of the CongoSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 1, 2006

First repayment (originally scheduled): Sep 1, 2006

Last repayment (originally scheduled): Aug 30, 2013

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

NGO/CSO/Foundations

Oasis S.P.R.L.

Implementing agencies

NGO/CSO/Foundations

Oasis S.P.R.L.

Guarantors

Private Sector

Millicom, Inc.

Loan description

China Development Bank provides $106 million loan to Oasis S.P.R.L. to finance its equipment purchases from Huawei

Grant element•6.438%Interest rate (t₀)•7.42%Interest type•Variable Interest RateMaturity•7 years

Narrative

Full Description

Project narrative

In September 2006, Oasis S.P.R.L. ('Oasis') — a local subsidiary of Millicom in the Democratic Republic of Congo —entered into a $106 million loan agreement with the China Development Bank to finance its equipment purchases from Huawei. The loan bears interest at LIBOR plus 2% and is repayable over 17 equal quarterly installments commencing in 2009. The loan carries a 7 year maturity with no grace period. It is guaranteed by Millicom. As of December 31, 2010, $55 million was outstanding under this facility (2009: $75 million).

Staff comments

1. The interest rate that applies to this loan (7.409%) was calculated by taking the average 6-month LIBOR rate during the month (September 2006) when the loan agreement was finalized (5.409%) and adding a 2% margin.