CDB provides $500 million buyer's credit loan to Megafon for the purchase of Huawei products (CDB VI) (Linked to Project ID#66954)

In June 2011, CDB signed two $500 million buyer's credit facility agreements with Megafon -- known as CDB VI (captured via Project ID#66939) and CDB VII (captured via Project ID#66954) -- to finance the purchase of Huawei equipment. The CDB VI facility carried an interest rate of LIBOR plus a 2.4% margin and a 5-year maturity (final maturity date: June 2016.) As of December 31, 2013, $243 million was drawn down from the facility. The remaining funds, $257 million, were not used when the facility term expired.

Additional details

1. CDB has provided several loan facilities to MegaFon. See Project ID#66854 for the first CDB credit facility to Megafon (CDB I), Project ID#66916 for CDB II, Project ID##66917 for CDB III, Project ID#66936 for CDB IV, Project ID##66953 for CDB V, and Project ID#66954 for CDB VII. 2. The average 6-month LIBOR in June 2011 was 0.398%, so the all-in interest rate was estimated as 0.398 + 2.4 = 2.798%. 3. This facility is also known as "China Development Bank VI".

Number of official sources

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Number of total sources

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