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Overview

ICBC provides $200 million buyer's credit facility to MTN Nigeria Communications to facilitate acquisition of telecommunication equipment from Huawei

Commitments (Constant USD, 2023)$257,227,695
Commitment Year•2010Country of Activity•NigeriaDirect Recipient Country of Incorporation•NigeriaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 9, 2010
First repayment (originally scheduled)
Jun 8, 2012
Last repayment (originally scheduled)
Jun 8, 2015

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • MTN Nigeria

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • MTN Nigeria

Loan description

ICBC provides $200 million buyer's credit facility to MTN Nigeria Communications to facilitate acquisition of telecommunication equipment from Huawei

Grace period•2 yearsGrant element•18.2445%Interest rate (t₀)•3.41%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On June 9, 2010, the Industrial and Commercial Bank of China (ICBC) and MTN Nigeria Communications Ltd. signed a $200 million buyer’s credit facility agreement. The loan carried a 3.41% interest rate and a 5-year maturity (final maturity date: June 2015). It was scheduled for repayment in 7 equal semi-annual installments from June 2012 to June 2015. The proceeds from the buyer's credit facility were to be used by the borrower to purchase equipment from Huawei. As of June 30, 2014, the facility had an outstanding (principal) balance of $61.1 million. The deal was part of a large bout of financing totaling just over US $2 billion dollars that was secured by MTN Nigeria in June 2010. The first facility was an NGN 250 billion syndicated 5-year loan from a consortium of 15 Nigerian banks. The remaining dollar denominated facilities consisted of ICBC’s $200 buyer’s credit facility, which is captured in this record, as well as a $250 million export credit facility from KfW Ipex for purchase of equipment from Ericcson, a Swedish telecom equipment manufacturer.

Staff comments

1. The buyer's credit facility held a five-year maturity period beginning in June 2010; however, repayments were not scheduled to commence until June 2012. Therefore, AidData considers the initial two-year interval as a de-facto grace period.