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Overview

China Development Bank contributes to $127 million syndicated loan for purchasing Huawei equipment and rolling out 8ta mobile network (linked to Record ID#100729, #100730)

Commitments (Constant USD, 2023)$18,041,892
Commitment Year•2011Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
First repayment (originally scheduled)
Dec 31, 2012
Last repayment (originally scheduled)
Dec 30, 2017

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)

Cofinancing agencies

Private Sector

  • Absa Group Ltd. (ABGL) (Formerly Barclays Africa Group Limited)
  • Barclays Bank PLC
  • Citibank, N.A.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Commercial Banks

  • Bank of China (BOC)
  • China Construction Bank Corporation (CCB)

Receiving agencies

Private Sector

  • Telkom SA SOC Limited

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

CDB, CCB, and Bank of China contribute to USD 127 million syndicated loan for Telkom SA Limited

Grace period•2 yearsInterest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

In January 2011, a consortium of eight banks signed a $127 million syndicated loan agreement with Telkom SA Limited (or “Telkom”) — a South African telecommunications company — for developing its mobile network in South Africa. The banks included China Development Bank (CDB), Bank of China (BOC), China Construction Bank (CCB), Barclays Capital, Absa Capital, Citibank, HSBC and the Sumitomo Mitsui Banking Corporation. China Export and Credit Insurance Corporation (Sinosure) provided insurance for the syndicated loan. The borrowing terms include a 7-year maturity but the other borrowing terms are unknown. The facility is was expected to be fully utilized during the 2012 financial year and repayable over a 5-year period. Record ID#59391 captures the estimated financial commitment of China Development Bank, Record ID#100729 captures the estimated financial commitment of Bank of China, and Record ID#100730 captures the estimated financial commitment of China Construction Bank. The loan proceeds were earmarked for the purchase of telecommunications equipment from Huawei and for capital expenditures to support the rollout of the company’s 8ta mobile network. Further implementation details are unknown.

Staff comments

1. One MOFCOM source says that Sinosure provided the loan but Sinosure only provides insurance. 2. The individual contributions of China Development Bank, Bank of China, and China Construction Bank to the $127 million syndicated loan are unknown. For the time being, AidData assumes that each of the eight participating banks contributed equal amounts ($15,875,000).