CDB provides $29.75 million buyer’s credit loan for ZTE Fiber-to-the-Home (FTTH) Network Project (Linked to Project ID#66445, #66448)
Constant 2017 USD
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Communications (Code: 220)
Export Buyer's Credit
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).
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
Number of unofficial sources
Receiving agencies [Type]
PT MNC Cable Mediacom (MKM) [Private Sector]
Implementing agencies [Type]
ZTE Corporation [State-owned Company]
Accountable agencies [Type]