CDB provides RMB 620 million loan tranche to Mobile Telesystems for the purchase of Huawei equipment and services (Linked to Project ID#66841)

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 Project ID#66841), and an RMB 620 million tranche (captured via Project 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.

Additional details

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%).

Number of official sources

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