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Overview

CDB provides $400 million buyer’s credit loan to Axis to facilitate acquisition of Huawei equipment and services

Commitments (Constant USD, 2023)$454,598,859
Commitment Year•2011Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 25, 2011
Last repayment (originally scheduled)
Nov 21, 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

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • Deutsche Bank AG
  • HSBC Saudi Arabia
  • Saudi Awwal Bank (SAB - Alawwal) (Formerly Saudi Arab British Bank (SABB))

Receiving agencies

Private Sector

  • PT Axis Telekom Indonesia (Axis)

Implementing agencies

Private Sector

  • PT Axis Telekom Indonesia (Axis)

Loan description

CDB contributions to USD 1.2 billion syndicated loan for Huawei equipment

Interest type•UnknownMaturity•7.5 years

Narrative

Full Description

Project narrative

On May 25, 2011, China Development Bank (CDB) issued a $400 million buyer’s credit loan (BCL) to PT Axis Telekom Indonesia (Axis) to facilitate its acquisition of equipment and services from Huawei. The borrowing terms include a 7.5-year maturity but the grace period and interest rate are unknown. The Huawei equipment would be used to expand the 3G cellular network in Indonesia. The CDB loan facility was part of a larger $1.2 billion transaction made up of three distinct facilities: a $450 million dual currency syndicated facility arranged by Deutsche Bank AG Saudi Arabia Limited and HSBC Saudi Arabia Limited and funded by Deutsche Bank Luxembourg S.A. and The Saudi British Bank, a $400 million facility to fund equipment purchases and civil works from Huawei, funded by China Development Bank and a $350 million facility to fund equipment purchases from Ericsson, arranged by HSBC, funded by AB Svensk Exportkredit (SEK) and backed by EKN, the Swedish Export Credit Agency. The deal also included the largest Islamic hedge transaction ever carried out in Asia, with the hedge being provided by Saudi British Bank and Deutsche Bank AG, International Islamic Banking, Malaysia Branch.