Bank of China and Huawei provide seller's credit worth $200 million for 4G telecommunication infrastructure network
Commitment amount
$ 217969949.57573536
Adjusted commitment amount
$ 217969949.58
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
Recipient
Egypt
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
Yes
Category
Project lifecycle
Description
On May 30, 2018, Telecom Egypt — a state-owned telecommunication company in Egypt — signed a $200 million seller’s credit facility (vendor financing) agreement with Huawei Technologies Co., Ltd. Huawei, in turn, secure a $200 million export seller’s credit from Bank of China. Sinosure provided credit insurance for the facility, which carried the following borrowing terms: a 4-year maturity and a 2-year grace period. The proceeds of the loan were to be used by Telecom Egypt to purchase goods and services from Huawei Technologies Co., Ltd. and support the rollout of its 4G telecommunication infrastructure network.
Additional details
1. Telecom Egypt (Arabic: المصرية للاتصالات), is Egypt's primary telephone company. It started in 1854 with the first telegraph line in Egypt. In 1998, it replaced the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). It is 80% owned by Egypt's Ministry of Communications and Information Technology.
Number of official sources
6
Number of total sources
11
Details
Cofinanced
No
Direct receiving agencies [Type]
Telecom Egypt [State-owned Company]
Huawei Technologies Co., Ltd. [Private Sector]
Implementing agencies [Type]
Huawei Technologies Co., Ltd. [Private Sector]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
4 years
Grace period
2 years