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Overview

ICBC, through VTB, provides buyer's credit loan facility worth $7.4 million to finance the purchase of Huawei products for MegaFon

Commitments (Constant USD, 2023)$16,650,258
Commitment Year•2003Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2003
Last repayment (originally scheduled)
Dec 30, 2008

Geospatial footprint

Map overview

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This project provides a buyer's credit loan facility for MegaFon, which is headquartered at Oruzheynyy Pereulok, 41, Moscow, Russia, 127006. More detailed locational information can be found at https://www.openstreetmap.org/relation/2139294.

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Private Sector

  • MegaFon PJSC

State-owned Banks

  • VTB Bank

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • MegaFon PJSC

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC, through VTB, provides buyer's credit loan facility worth $7.4 million to finance the purchase of Huawei products for MegaFon

Interest type•UnknownMaturity•6 years

Narrative

Full Description

Project narrative

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".