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Overview

CDB provides $200 million buyer's credit facility with MegaFon for the purchase of Huawei equipment (Linked with Record ID#66953) (CDB IV)

Commitments (Constant USD, 2023)$227,299,430
Commitment Year•2011Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011
Last repayment (originally scheduled)
Dec 31, 2015

Geospatial footprint

Map overview

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CDB signs a buyer's credit facility with MegaFon, which 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

Loan desecription

CDB provides $200 million buyer's credit facility with MegaFon for the purchase of Huawei equipment

Interest rate (t₀)•2.85594%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

In January 2011, CDB signed two buyer's credit facility agreements with Megafon for the purchase of Huawei equipment, known as CDB IV (200 million USD) and CDB V (300 million USD, recorded in Record ID#66953). This project captures the 200 million USD CDB IV facility. The facility has an interest rate of LIBOR + 2.4%. The average 6-month LIBOR in January 2011 was 0.455%, so the interest rate has been calculated as 0.455 + 2.4 = 2.855%. CDB IV has a maturity date of 21 January 2016. CDB IV requires semi-annual payments starting on January 2013 until January 2016, with 77.5% of the principal amount not being due until the final year. The CDB V loan facility could not be accessed until either the USD 200 million facility was fully drawn down or until January 2012, whichever came first.

Staff comments

1. CDB has provided several loan facilities to MegaFon. See Record ID#66854 for the first CDB credit facility to Megafon, #66916 for CDB II, #66917 for CDB III, #66953 for CDB V, #66939 for CDB VI, and #66954 for CDB VII.