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Overview

China Development Bank provides RMB 700 million export seller's credit to VimpelCom to facilitate the acquisition of Huawei equipment

Commitments (Constant USD, 2023)$116,515,047
Commitment Year•2015Country of Activity•RussiaDirect Recipient Country of Incorporation•NetherlandsSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 24, 2015
Last repayment (originally scheduled)
Dec 31, 2019

Geospatial footprint

Map overview

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This loan supported OJSC VimpelCom, which is headquartered at 4 Krasnoproletarskaya Street Moscow, 127083 Russian Federation. More detailed locational information can be found at https://www.openstreetmap.org/relation/5364656.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • VEON Holdings B.V. (formerly VimpelCom Holdings B.V.)

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

Guarantors

Private Sector

  • VEON Amsterdam B.V. (formerly VimpelCom Amsterdam B.V.)

Loan desecription

China Development Bank provides RMB 700 million export seller's credit to VimpelCom to facilitate the acquisition of Huawei equipment

Interest rate (t₀)•5.71%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On December 24, 2015, China Development Bank Corporation (CDB) signed a RMB 700 million ($107 million USD) export seller's credit agreement with VimpelCom Holdings B.V. — the Netherlands-incorporated telecommunications provider headquartered in Amsterdam wholly-owned by Netherlands-incorporated VimpelCom Amsterdam B.V., itself wholly-owned by Bermuda-incorporated VimpelCom Ltd. — to finance the purchase of Huawei equipment. This vendor financing carried a fixed interest rate of 5.71% and a maturity period of five years and an availability period of two years. VimpelCom Amsterdam B.V. issued a guarantee for the borrower's payment obligations. The proceeds were to be used by the borrower to finance the purchase by PJSC VimpelCom — the Russia-incorporated and based subsidiary of VimpelCom Holdings B.V., a Netherlands-incorporated wholly-owned subsidiary of VimpelCom Amsterdam (100% minus one share) and VimpelCom Ltd. (one share) — of equipment from Huawei Technologies Co., Ltd., its subsidiaries, and its affiliates. As of December 31, 2016, the borrower had utilized RMB 149 million ($21 million USD) of the facility.