CDB provides $125 million, 7-year loan to Turkcell to finance purchases from Huawei (Linked to Project ID#67353)
Commitment amount
$ 153735022.66765967
Adjusted commitment amount
$ 153735022.67
Constant 2021 USD
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Türkiye
Sector
Other social infrastructure and services (Code: 160)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Description
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 Project 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 Project 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.
Number of official sources
1
Number of total sources
3
Details
Cofinanced
No
Direct receiving agencies [Type]
Turkcell İletişim Hizmetleri A.Ş. (Turkcell) [Private Sector]
Implementing agencies [Type]
Turkcell İletişim Hizmetleri A.Ş. (Turkcell) [Private Sector]
Loan Details
Maturity
7 years
Interest rate
3.78%
Grant element (OECD Grant-Equiv)
16.445%