CDB provides $50 million (Phase 1) loan to Smartel for working capital and the acquisition of telecommunications equipment (Linked to Project ID#66462)

On March 25, 2013, China Development Bank signed a phase 1 of a Working Capital Credit Facility Agreement for $50 million with PT Smartfren Telecom (Smartel), a subsidiary of PT Smartfren Telecom Tbk, for the purchase of handsets or communication equipment. The loan has an 18 month grace period, and will be due in 2016 with an interest rate of six-month LIBOR plus a certain margin payable every May 20 and November 20 each year. The average effective interest rate in 2015 and 2014 is 3.95% and 3.88%, while the average effective interest rate for the nine-month periods ended September 30, 2016 and 2015 were 4.16% and 3.92%, respectively. The outstanding loan payable as of December 31, 2015 and 2014 amounted to $12,490,847 and $33,308,926, respectively. In March 2016, Smartel had fully repaid this loan.

Additional details

1. The interest rate has been recorded as 4%, the approximate average of the recorded average effective interest rates. 2. This transaction is linked to Project ID##66462, $200 million from CDB for Working Capital Credit Facility Phase II.

Number of official sources

4

Number of total sources

5