ICBC, through VTB, provides buyer's credit loan facility worth $7.4 million to finance the purchase of Huawei products for MegaFon
Commitment amount
$ 18026871.67880118
Adjusted commitment amount
$ 18026871.68
Constant 2021 USD
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
Russia
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
In August 2003, ICBC, VTB, and Megafon signed an export buyer's credit loan agreement for two loan facilities worth USD $4.1 and $3.3 million for Megafon to purchase Huawei telecom products for the Khabarovsk and Novosibirsk subsidiaries of Megafon. The length of the facility is 6 years. The loan facility is insured by Sinosure. The money is coming from ICBC to VTB, which is in turn disbursing it to Megafon. Because of this deal, Megafon became the first telecommunications company in Russia to use Huawei equipment. This agreement is a part of the greater modernization effort by Megafon, where the supply of equipment from Huawei will be done in several stages. According to the Megafon annual report, " Vneshtorgbank acted as the Russian bank that transferred a loan from the Industry and Commerce Bank of China to MegaFon".
Number of official sources
1
Number of total sources
4
Details
Cofinanced
No
Direct receiving agencies [Type]
VTB Bank [State-owned Bank]
Indirect receiving agencies [Type]
MegaFon [Private Sector]
Implementing agencies [Type]
Huawei Technologies Co., Ltd. [Private Sector]
MegaFon [Private Sector]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
6 years