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Overview

CDB provides $300 million loan to Megafon for the purchase of Huawei products (CDB III)

Commitments (Constant USD, 2023)$416,195,331
Commitment Year•2009Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 3, 2009
Last repayment (originally scheduled)
Jun 1, 2016

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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Megafon has its headquarters is located at 41 Oruzheyniy lane, Moscow 127006, Russia. More detailed locational information can be found at https://www.openstreetmap.org/node/6193233295.

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)

Receiving agencies

Private Sector

  • MegaFon PJSC

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • MegaFon PJSC

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

CDB provides $300 million loan to Megafon for the purchase of Huawei products (CDB III)

Interest rate (t₀)•3.9075%Interest type•Variable Interest RateMaturity•7 years

Narrative

Full Description

Project narrative

On June 3, 2009, China Development Bank (CDB) signed a loan facility worth $300 million with Megafon for the purchase of Huawei products. The facility has an interest rate of LIBOR + 2.7%. The facility is repayable in semi-annual installments from 2011 to 2016. Megafon documents refer to the facility as "China Development Bank III Credit Facility". The loan was an export's credit. Sinosure provided insurance for the loan. The equipment will help Megafon expand its 3G services as well as its GSM content. The loan is in the form of export credits. Sinosure is providing the insurance for the loan. As of December 31, 2010, the facility had a drawn down amount of $218,182,000 USD. CDB has provided several loan facilities to MegaFon. See Record ID#66854 for the first CDB credit facility to Megafon (CDB I), #66916 for CDB II, #66936 for CDB IV, #66953 for CDB V, #66939 for CDB VI, and #66954 for CDB VII.

Staff comments

1. The average 6-month LIBOR in June 2009 was 1.180%, so the interest rate has been calculated as 1.180 + 2.7 = 3.88%.