CDB and BoC provides $350 million club loan to Sistema for debt refinancing purposes
Commitment amount
$ 392796449.3526334
Adjusted commitment amount
$ 392796449.35
Constant 2021 USD
Summary
Funding agency [Type]
Bank of China (BOC) [State-owned Commercial Bank]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Russia
Sector
Business and other services (Code: 250)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On December 17, 2015, China Development Bank (CDB) and Bank of China (BoC) signed a club loan facility agreement with AFK Sistema PAO ('Sistema') worth $350 million. The facility was an unsecured six-year credit facility agreement. This was reportedly the first unsecured club loan that China had ever given to a Russian company. Sistema was expected to use the loan to replace capital used to pay down debt. The loan had an interest rate that was significantly lower than the average yield on Eurobonds.
Additional details
1. AFK Sistema PAO is a large Russian conglomerate company, founded by Vladimir Yevtushenkov, who was chairman of the corporation's board of directors until 2022. Sistema has its headquarters in Moscow. The company's global depository receipts (GDRs) are traded on the London Stock Exchange.
Number of official sources
1
Number of total sources
5
Details
Cofinanced
Yes
Direct receiving agencies [Type]
Sistema [Private Sector]
Implementing agencies [Type]
Sistema [Private Sector]
Loan Details
Maturity
6 years