CDB provides $500 million buyer's credit loan to Megafon for the purchase of Huawei products in 2011 (CDB VII) (Linked to Project ID#66939)

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 VII facility had an interest rate of LIBOR plus a 2.4% margin. It required semi-annual payments, starting two years after the facility was first drawn down and the payments were spread over a three year period. The facility could not be drawn down until either CDB VI was drawn down or until June 2012, whichever came first. As of 31 December 2013, $65 million had been drawn down and $435 million remained undrawn.

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 has been estimated as 0.398 + 2.4 = 2.798%

Number of official sources

5

Number of total sources

5