CDB heads the provision of an 85 million USD credit facility to Megafon for the purchase of Huawei equipment (CDB II)

In October, 2007, CDB participated in a 85 million USD credit facility to Megafon for the purchase of Huawei equipment. The facility has an interest rate of LIBOR + 1.1%. The average 6-month LIBOR in October 2007 was 5.051%, so the interest rate has been calculated as 5.051 + 1.1 = 6.151%. Amounts drawn from this credit facility are repayable in semi-annual installments from 2009-2014. The other bank involved was Bayerische Landesbank. It is unclear how much of the facility is coming just from CDB; most media reports simply refer to the facility as coming from CDB, and the name of the facility is "China Development Bank II Credit Facility", which likely indicates the vast majority is coming from CDB. Megafon owed Huawei 900 million rubles by the end of the third quarter of 2007. In addition to that, Megafon has decided to repay a loan from China Development Bank that it received in 2005. The company will pay the bank $46 million before the end of the year. As of December 31, 2010, the facility was fully drawn. CDB has provided several loan facilities to MegaFon. See project ID #66854 for the first CDB credit facility to Megafon (CDB I), #66916 for CDB II, #66917 for CDB III, #66936 for CDB IV, #66953 for CDB V, #66939 for CDB VI, and #66954 for CDB VII.

Additional details

For the time being, AidData has estimated the contribution of the Chinese state-owned bank by assuming that the two lenders contributed equal amounts ($42,500,000) to the loan syndicate for consistency coding.

Number of official sources

2

Number of total sources

4