Overview

Bank of China and Huawei provide seller's credit worth $200 million for 4G telecommunication infrastructure network

Commitments (Constant USD, 2023)$201,259,259

Commitment Year•2018Country of Activity•EgyptDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 30, 2018

First repayment (originally scheduled): May 29, 2020

Last repayment (originally scheduled): May 29, 2022

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 ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

Bank of China (BOC)

Receiving agencies

Private Sector

Huawei Technologies Co., Ltd.

State-owned companies

Telecom Egypt

Implementing agencies

Private Sector

Huawei Technologies Co., Ltd.

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan description

Bank of China and Huawei provide seller's credit worth $200 million for 4G telecommunication infrastructure network

Grace period•2 yearsInterest type•UnknownMaturity•4 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.