China Development Bank provides $500 million buyer's credit loan to Telemar Norte Leste SA to purchase equipment (Linked to Project ID#38142)

On October 30, 2009, China Development Bank (CDB) signed a $500 million buyer's credit loan (BCL) facility agreement with Telemar Norte Leste SA (TMAR), a Brazil-based telecommunications company and subsidiary of Oi SA. The borrowing terms of the loan included an annual interest rate of LIBOR plus 250 basis points, a 3-year grace period, and a 4-year maturity. Interest on the loan was payable semi-annually in arrears through maturity in October 2016. The outstanding principal amount of these loans was payable in 11 equal semi-annual installments commencing in April 2012 and terminating upon maturity in October 2016. CDB disbursed $94 million in 2010 and $98 million in 2011. On December 31, 2012, the (principal) amount outstanding under this credit facility was $158 million. As of December 31, 2017, the (principal) amount outstanding was equal to $35 million. The purpose of this loan was to fund equipment purchases related to Telemar’s capital expenditures on telecommunications infrastructure. In February 2009, CDB provided a separate $300 million loan to TMAR to purchase Huawei equipment (as captured via Project ID#38142).

Additional details

1. AidData calculated the interest rate as follows: 0.59% (6 Month USD avg. LIBOR in October 2009) + 2.5% (given margin) = 3.09%

Number of official sources

4

Number of total sources

5