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Overview

China Development Bank contributes to $350 million club loan to Sistema for debt refinancing purposes (linked to Record ID#100868)

Commitments (Constant USD, 2023)$183,084,717
Commitment Year•2015Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 17, 2015
Last repayment (originally scheduled)
Dec 15, 2021

Geospatial footprint

Map overview

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This project provides a $350 million credit facility to Sistema, which is headquartered at 13 Mokhovaya St, Moscow, 125009, Russian Federation. More detailed locational information can be found at https://www.openstreetmap.org/way/44642920.

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)

Cofinancing agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • PJSFC Sistema (AFK Sistema)

Implementing agencies

Private Sector

  • PJSFC Sistema (AFK Sistema)

Loan description

CDB and BOC contribution to $350 million club loan to Sistema for debt refinancing purposes

Interest type•UnknownMaturity•6 years

Narrative

Full Description

Project narrative

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. Record ID#66846 captures the estimated financial commitment of China Development Bank, while Record ID#100868 captures the estimated financial commitment of Bank of China. 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.

Staff comments

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. 2. The individual contributions of China Development Bank and Bank of China to the $350 million syndicated loan are unknown. For the time being, AidData assumes equal contributions ($175 million) across all two known members of the syndicate.