Overview

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

Commitments (Constant USD, 2023)$44,693,308

Commitment Year•2017Country of Activity•NigeriaDirect Recipient Country of Incorporation•NigeriaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 1, 2017

Start (actual): Aug 1, 2018

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

Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

Credit Suisse AG

Receiving agencies

Private Sector

MTN Nigeria

Loan desecription

China Eximbank contribution to USD 84 million syndicated buyer's credit facility for MTN Nigeria Communications acquisition of telecommunication equipment from Huawei

Interest rate (t₀)•6.92322%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

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.

Staff comments

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.