Skip to content
AidData logo

Overview

CDB provides $100 million loan tranche to Mobile Telesystems for the purchase of Huawei equipment and services (Linked to Record ID#66842)

Commitments (Constant USD, 2023)$104,619,838
Commitment Year•2015Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 8, 2015
Last repayment (originally scheduled)
May 6, 2022

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

This project signs a loan facility to Mobile Telesystems, headquartered at 4 Marksistskaya Street Moscow, 109147 Russian Federation. More detailed locational information can be found at https://www.openstreetmap.org/way/47572146.

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

  • Mobile Telesystems (MTS)

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • Mobile Telesystems (MTS)

Loan desecription

CDB provides $100 million loan tranche to Mobile Telesystems for the purchase of Huawei equipment and services

Interest rate (t₀)•3.66425%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•7 years

Narrative

Full Description

Project narrative

On May 8, 2015, China Development Bank (CDB) signed a $200 million term loan (facility) agreement with Mobile Telesystems (MTS) for the purchase of Huawei equipment and services. The loan had two tranches; a USD-denominated, $100 million tranche (captured via Record ID#66841), and an RMB 620 million tranche (captured via Record ID#66842). The USD-denominated loan tranche carried a 7-year maturity and an interest rate of 6-month LIBOR plus a 3.25% margin. The RMB-denominated loan tranche carried a 7-year maturity and an interest rate of 6-month SHIBOR plus a 3.52% margin. The loan's availability period ended in May 2017. MTS was expected use the facility to construct next-generation networks in Russia. As of December 31, 2015, the USD tranche was unused. The facility at that point had a value of RUB 7.288 billion. As of December, 31, 2016, the USD tranche had a total unused credit value of RUB 6.065 billion RUB. As of December 31, 2015, the RMB facility was unused. The facility at that point had a value of RUB 6.962 billion. As of December 31, 2016, the RMB facility had a total unused credit value of RUB 5.412 billion.

Staff comments

1. The borrower's Consolidated Financial Statements in later years do not mention this loan. 2. AidData has estimated the all-in interest rate that applied to the USD-denominated loan tranche by adding 3.25% to average 6-month LIBOR in May 2015 (0.417%). 3. AidData has estimated the all-in interest rate that applied to the RMB-denominated loan tranche by adding 3.52% to average 6-month SHIBOR in May 2015 (4.1831%).