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Overview

CDB provides $29.75 million buyer’s credit loan for ZTE Fiber-to-the-Home (FTTH) Network Project (Linked to Record ID#66445, #66448)

Commitments (Constant USD, 2023)$31,657,760
Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 17, 2017
Last repayment
Dec 30, 2026

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

  • PT MNC Kabel Mediacom (MKM)

Implementing agencies

State-owned companies

  • ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation)

Accountable agencies

Private Sector

  • PT Global Mediacom Tbk (MCOM)

State-owned Banks

  • PT Bank Rakyat Indonesia (Persero) Tbk

Guarantors

Private Sector

  • PT Global Mediacom Tbk (MCOM)

Security / collateral agents

State-owned Banks

  • PT Bank Rakyat Indonesia (Persero) Tbk

Loan desecription

CDB provides $29.75 million buyer’s credit loan for ZTE Fiber-to-the-Home (FTTH) Network Project

Grant element•16.1946%Interest rate (t₀)•5.28211%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•10 years

Narrative

Full Description

Project narrative

On November 17, 2017, China Development Bank (CDB) and PT MNC Kabel Mediacom (MKM) — a subsidiary of PT Global Mediacom Tbk (BMTR) — signed a $29.75 million buyer’s credit loan agreement for the ZTE Fiber-to-the-Home (FTTH) Network Project. CDB was the Lender, Arranger, and Facility Agent; PT Bank Rakyat Indonesia Tbk was the Security Agent; and BMTR was the loan guarantor. The loan carried a term of 10 years and an interest rate of 6-month LIBOR (1.626% in November 2017) plus a 3.65% margin. As of December 31, 2018 and 2017, MKM had complied with the financial ratios and covenants stated in the loan agreement. The borrower was to use the proceeds of the loan to purchase goods and/or services from ZTE Corporation and thereby build a Fiber-to-the-Home (FTTH) network.

Staff comments

1. No sources explicitly state that this is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) the face value of the loan is explicitly identified in multiple official sources, and (4) the loan is used to procure equipment from a Chinese company. 2. AidData has coded this transaction as a collateralized loan because PT Bank Rakyat Indonesia Tbk was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower’s default under the loan. 3. MKM also secured a $76.5 million buyer’s credit loan and a $46.75 million buyer’s credit loan from CDB on November 17, 2017 (see Record ID#66448 and ID#66445).