CDB provides $300 million loan to Megafon for the purchase of Huawei products (CDB III)
Commitment amount
$ 450603014.4824376
Adjusted commitment amount
$ 450603014.48
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Russia
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
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 project 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.
Additional details
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%.
Number of official sources
2
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
MegaFon [Private Sector]
Implementing agencies [Type]
MegaFon [Private Sector]
Huawei Technologies Co., Ltd. [Private Sector]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
7 years
Interest rate
3.88%
Grant element (OECD Grant-Equiv)
16.1701%