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Overview

CDB provides loan facilities worth $168.5 million for Warid GSM Telecom Network in Uganda and DRC

Commitments (Constant USD, 2023)$233,763,044
Commitment Year•2009Country of Activity•Africa, regionalDirect Recipient Country of Incorporation•United Arab EmiratesSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2009
Last repayment (originally scheduled)
Dec 30, 2016

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

  • Warid Telecom (Private) Limited

Implementing agencies

Private Sector

  • Ericsson
  • Huawei Technologies Co., Ltd.

Loan description

CDB provides loan facilities worth $168.5 million for Warid GSM Telecom Network in Uganda and DRC

Grant element•17.6021%Interest rate (t₀)•4%Interest type•Variable Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

In 2009, China Development Bank (CDB) issued loan facilities worth $168.5 million to Warid Telecom (Private) Limited. These facilities reportedly carried the following borrowing terms: 8-year maturities and interest rates of LIBOR plus 225 basis points. The loan proceeds were to be used by the borrower to purchase equipment from Ericsson and Huawei Technologies, thereby supporting the implementation of the Warid GSM Telecom Network Project in Uganda and the Democratic Republic of Congo. Some sources also suggest that the disbursed funds were used — at least in part — to repay the pre-existing debts of Warid Telecom (Private) Limited.

Staff comments

1. Some sources refer to a $112.5 million CDB loan to ‘Warid Telecom Uganda’. It is unclear if this reflects an on-lending arrangement between Warid Telecom (Private) Limited and Warid Telecom Uganda. This issue warrants further investigation. 2. AidData has estimated the all-in interest rate by adding 2.25% average 6-month LIBOR during calendar year 2009 (1.1%) and adds a 2.25% margin. The estimated all-in interest rate for this loan is 3.35%. 3. As of 2015, Warid Telecom (Private) Limited was a wholly owned company of Warid Telecom Pakistan LLC. However, at the time that the loan was contracted, it was a joint venture.