China Development Bank provides $300 million buyer's credit loan facility to MegaFon for purchase of Huawei equipment (Linked to Project ID#66976)
Commitment amount
$ 336682670.8736857
Adjusted commitment amount
$ 336682670.87
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 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.
Additional details
1. On the same day, CDB and MegaFon signed another $300 million loan agreement for debt refinancing purposes (as captured via Project 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%).
Number of official sources
4
Number of total sources
6
Details
Cofinanced
No
Direct receiving agencies [Type]
MegaFon [Private Sector]
Implementing agencies [Type]
Huawei Technologies Co., Ltd. [Private Sector]
MegaFon [Private Sector]
Loan Details
Maturity
8 years
Interest rate
3.314%
Grant element (OECD Grant-Equiv)
19.6979%