Narrative
Full Description
Project narrative
In June 2012, China Development Bank (CDB) Hong Kong Branch and Xinwei (Cambodia) Telecom Co. Ltd. — a subsidiary of the privately-owned Beijing Xinwei Telecom Technology Group Co., Ltd. (Xinwei Group) — signed a buyer's credit loan (BCL) agreement for a 4G Network Project. The face value of the loan was reportedly worth the USD equivalent of RMB 3 billion (the sum of two tranches worth RMB 2.2 billion and RMB 800 million). The proceeds of the loan were to be used by the borrower to purchase telecommunications equipment from Beijing Xinwei, Chongqing Xinwei, Xinwei Hong Kong for the construction and operation of the Cambodia 4G Network Project. As of December 31, 2018, Xinwei (Cambodia) Telecom Co. Ltd.’s loan balance at Hong Kong CDB was US$47.242 million and RMB 99.3750 million. As part of the June 2012 agreement, China Development Bank Co., Ltd. Beijing Branch also provided a letter of guarantee to Hong Kong CDB. The collateral for the facility included the telecommunication licenses, the radio frequency spectrum, and all current and future assets of Xinwei (Cambodia) Telecom including the 4G network to be deployed across Cambodia. Then, in December 2017, Xinwei (Cambodia) Telecom Co. Ltd. signed a $43 million financing and foreign exchange loan contract with the Beijing Branch of the Hong Kong China Development Bank to repay the original June 2012 RMB 3 billion loan contract whose principal, interest, and guarantee fees were expected to expire on September 27, 2017 and December 27, 2017. The maturity period of the loan was 18 months starting from December 27, 2017. As of December 31, 2018, Xinwei (Cambodia) Telecom Co. Ltd. had withdrawn US$26 million. Then, in April 2018, Xinwei (Cambodia) Telecom Co. Ltd. signed a $134 million financing and foreign exchange loan contract with China Development Bank Beijing Branch for all loans due on or after March 27, 2018 in the original RMB 3 billion loan contract including principal, interest, and guarantee fees, etc, including the US$26 million disbursed under the foreign exchange loan contract signed in December 2017. The maturity period of the loan was 15 months from April 2018. As of December 31, 2018, Xinwei (Cambodia) Telecom Co. Ltd. had withdrawn $50.8 million. The Cambodian Ministry of Posts and Telecommunications granted CooTel’s parent company, Xinwei (Cambodia) Telecom Co. Ltd., an operating license in August 2011 and the firm has already opened an office on Street 169. Cambodia Xinwei is a subsidiary of Beijing-based conglomerate Xinwei Telecom Enterprise Group, whose chairman is Chinese internet mogul Wang Jing. China Development Bank visited the firm in Cambodia in late May 2012 and intends to “fully support the globalization” of Xinwei networks, according to the statement. CooTel expected to launch its 4G network in August 2013. Cootel is the newest entrant into the Cambodian wireless market, starting operations in Q3 2013 and offering exclusively 4G services through its technology, known as McWiLL, or Multi-Carrier Wireless Information Local Loop network. In 2014, China Eximbank also provided a loan for Cambodia's 4G Network Project (as captured via Record ID#85341).
Staff comments
1. The loan agreements signed in December 2017 and April 2018 are not captured as they refinanced the 2012 CDB loan agreement. In cases of refinancing, AidData captures only the first round of financial contributions from Chinese state-owned banks (to avoid double-counting). 2. In 2015, Xinwei (Cambodia) Telecom Co. Ltd. applied for a loan of $13.69 million from Ping An Bank's Off Shore center for its daily operations. This loan is not recorded by AidData since it was not issued by a Chinese state-owned bank.