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Overview

ICBC contributes $100 million to syndicated buyer's credit facility for MTN Telecommunications Project (Linked to Record ID#60939, #67049, and #67050)

Commitments (Constant USD, 2023)$103,397,129
Commitment Year•2013Country of Activity•NigeriaDirect Recipient Country of Incorporation•NigeriaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 24, 2013
End (actual)
Apr 3, 2018
Last repayment (originally scheduled)
Apr 23, 2019

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 Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

State-owned Commercial Banks

  • China Construction Bank Corporation (CCB)

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • MTN Nigeria

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • MTN Nigeria

Loan description

CDB, CCB, and ICBC contribute to $300 million syndicated buyer's credit loan for MTN Telecommunications Project

Grant element•15.2517%Interest rate (t₀)•3.4714%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•6 years

Narrative

Full Description

Project narrative

On April 24, 2013, China Development Bank (CDB), the Industrial and Commercial Bank of China (ICBC), and the China Construction Bank (CCB) signed a $300 million syndicated buyer’s credit facility agreement with MTN Nigeria Communications Ltd. to upgrade and expand its network. This loan carried a 6.6-year maturity (final maturity date of December 2019) an interest rate of 6-Month LIBOR plus a margin of 3.04%. The principal repayment of ten (10) equal installments commenced in July 2015. As of June 30, 2014, the loan's (principal) amount outstanding was $85.05 million. Huawei was responsible for the implementation of this project, and the proceeds from the syndicated buyer's credit facility were used by MTN Nigeria Communications Ltd. to purchase telecommunications equipment from Huawei. MTN Nigeria and Huawei completed commercial deployment of the RuralStar 2.0 solution on April 3, 2018. Record ID#60939 is the umbrella record that captures the entire $300 million syndicated buyer's credit facility. Record ID#67049 captures the $100 million contribution from CDB. Record ID#67050 captures the $100 million contribution from CCB. Record ID#67048 captures the the $100 million contribution from ICBC.

Staff comments

1. This project is also known as the MTN Fiber Optic Cable Project. The Chinese project title is 了尼日利亚MTN光缆骨干网项目. 2. The interest rate that applies to this loan (3.476%) was calculated by taking the average 6-month LIBOR rate during the month (April 2013) when the loan agreement was finalized (0.436%) and adding a 3.04% margin.