China Eximbank and Credit Suisse AG provide $84 million syndicated buyer's credit facility for MTN Nigeria Communications to facilitate acquisition of telecommunication equipment from Huawei

In April 2017, China Eximbank and Credit Suisse AG signed an $84 million syndicated buyer's credit facility agreement with MTN Nigeria Communications Ltd. to facilitate its acquisition of telecommunication equipment from Huawei. This loan carries an interest rate of LIBOR plus a margin of 5.5%. The proceeds from the loan were used to finance 85% of the the value of a $106 million contract with Huawei. It is repayable in 8 equal installments beginning August 2018. The loan achieved a 100% disbursement rate.

Additional details

1. The interest rate that applies to this loan (6.975%) was calculated by taking the average 6-month LIBOR rate in 2017 (1.475%) — the year when the loan agreement was finalized — and adding a 5.5% margin. 2. The individual contributions of China Eximbank, and Credit Suisse AG to the syndicated loan are unknown. For the time being, AidData has estimated the contribution of the China Eximbank by assuming that the two lenders contributed equal amounts ($42,000,000) to the loan syndicate.

Number of official sources

3

Number of total sources

8