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Overview

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

Commitment Year•2015Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 4, 2015

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • MegaFon PJSC

Loan description

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

Interest type•Fixed Interest RateMaturity•6 years

Narrative

Full Description

Project narrative

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 Record ID#66975).

Staff comments

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 Record ID#66953).