Overview

CDB provides $125 million, 5-year loan to Turkcell to finance purchases from Huawei (Linked to Record ID#67354)

Commitments (Constant USD, 2023)$142,062,143

Commitment Year•2011Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 22, 2011

Last repayment (originally scheduled): Dec 31, 2015

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

Turkcell İletişim Hizmetleri A.Ş. (Turkcell)

Implementing agencies

Private Sector

Turkcell İletişim Hizmetleri A.Ş. (Turkcell)

Loan description

CDB provides $125 million, 5-year loan to Turkcell to finance purchases from Huawei

Grant element•12.3979%Interest rate (t₀)•3.801%Interest type•Variable Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On December 22, 2011, Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”) — the largest (private) mobile phone operator in Turkey — signed a $250 million loan agreement with China Development Bank to finance the company’s purchases of products and services from Huawei and thereby support the company’s capital investments. The loan was divided into two equal tranches of $125 million: the first tranche (captured in Record ID#67353) had a maturity length of 5 years and an interest rate LIBOR (calculated at 0.78% for 6-month 2011 rate) + a 3% margin, and the second tranche (captured in Record ID#67354) had a maturity length of 7 years and an interest rate LIBOR (calculated at 0.78% for 6-month 2011 rate) + a 3% margin. This loan was not collateralized.