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Overview

China Development Bank provides $300 million buyer's credit loan facility to MegaFon for purchase of Huawei equipment (Linked to Record ID#66976)

Commitments (Constant USD, 2023)$313,859,514
Commitment Year•2015Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 4, 2015
Last repayment
Dec 30, 2022

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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CDB provides a buyer's credit loan facility to 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

China Development Bank provides $300 million buyer's credit loan facility to MegaFon for purchase of Huawei equipment

Interest rate (t₀)•3.2424%Interest type•Variable Interest RateMaturity•8 years

Narrative

Full Description

Project narrative

On September 3, 2015, China Development Bank agreed in principle to issue a buyer's credit loan worth $300 million to MegaFon to finance its purchase of Huawei equipment. Then, on December 4, 2015, the buyer's credit loan agreement itself was signed. The loan carried a maturity of 8 years and interest rate equal to LIBOR plus a 2.4-2.7% margin. The proceeds of the loan were to be used by the borrower to improve 3G and 4G service and modernize existing infrastructure.

Staff comments

1. On the same day, CDB and MegaFon signed another $300 million loan agreement for debt refinancing purposes (as captured via Record ID#66976). 2. AidData has estimated the all-in interest rate (3.314%) by adding average 6-month LIBOR in December 2015 (0.764%) to the midpoint of the 2.4-2.7% margin range (2.55%).