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

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.

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