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Overview

China Development Bank provides $135 million loan to Econet Wireless Zimbabwe for telecommunication network expansion and refinancing purposes

Commitments (Constant USD, 2023)$146,315,408
Commitment Year•2012Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 11, 2012
Start (actual)
May 11, 2012
End (planned)
Apr 12, 2017
End (actual)
Feb 28, 2019
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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • Econet Wireless Zimbabwe Limited

Guarantors

Private Sector

  • Econet Global Limited

Loan desecription

China Development Bank provides $135 million loan to Econet Wireless Zimbabwe for telecommunication network expansion and refinancing purposes

Grant element•6.9922%Interest rate (t₀)•6.4%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On 11 May, 2012, China Development Bank provided an $135 million loan to Econet Wireless Zimbabwe for for telecommunication network expansion and refinancing purposes. This loan carried an effective interest rate of 6.4%. It was guaranteed by Econet Global Limited (EGL). The projected date of last payment was 12 April, 2017; therefore, making the estimated maturity length of the loan 5 years. This loan is part of a larger, $362 million loan facility to the Econet Wireless Group that was arranged by AfriEximbank, with the participation of development and financial institutions from Germany (Deutsche Investitions-und Entwicklungsgesellschaft mbH [DEG]), France (Societe De Promotion Et De Participation Pour La Cooperation Economique (PROPARCO), China (China Development Bank Corporation [CDB]), the Netherlands (Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. [FMO]), South Africa (Industrial Development Corporation of South Africa [IDC]), and Sweden (Exportkreditnämnden [EKN]). As of 2017 and 2018, under interest paying debt on the financial statement, the loan for 135 million had not been paid off yet. On the 2019 financial statements, the loan was no longer under interest paying debt, meaning that it had been paid off in 2019.