CDB signs $300 million loan facility with MegaFon for general debt refinancing (linked with project #66975)

On September 3, 2015, China Development Bank agreed to give MegaFon a loan worth $300 million in order to refinance debt. On December 4, 2015, the agreement itself was signed. It's unclear if the loan is to refinance payment of previous CDB-MegaFon loan facilities; MegaFon did not say which loans are to be refinanced, but did state it would be "short term obligations." The loan has a tenor of 6 years. As such, it does not seem that this is simply a rescheduling of CDB debt. MegaFon reported to media that the terms are "similiar" to past MegaFon-CDB agreements, which were generally between 2.4-2.7%+LIBOR. On the same day, CDB and MegaFon signed another agreement for an additional 300 million USD that will go to buying Huawei equipment and services (see project ID #66975).

Additional details

1. No transaction amount has been captured for this project to avoid double counting with previous CDB commitments to MegaFon. Note that AidData has separately captured a $300 million loan from CDB to MegaFon in 2011 (as captured via Project ID#66953).

Number of official sources

4

Number of total sources

6