Project ID: 66446

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

Commitment amount

$ 29750000.0

Constant 2017 USD

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Indonesia

Sector

Communications (Code: 220)

Flow type

Export Buyer's Credit

Concessional

No

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2017

Description

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. 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 Project ID#66448 and ID#66445).

Additional details

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.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.

Number of official sources

5

Number of unofficial sources

0

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Details

Cofinanced

No

Receiving agencies [Type]

PT MNC Cable Mediacom (MKM) [Private Sector]

Implementing agencies [Type]

ZTE Corporation [State-owned Company]

Accountable agencies [Type]

Loan type

Non-Concessional

Maturity

10 years

Interest rate

5.276%

Grant element

16.21673366%

Gurarantee provided

Yes

Insurance provided

No

Collateralized/securitized

Yes