CDB contributes to a $150 million syndicated loan to Nextel Chile to finance telecommunications equipment

In December 2010, China Development Bank and HSBC Bank USA entered into a syndicated loan (equipment financing) agreement with Nextel Chile, authorizing Nextel Chile to borrow up to $150 million to finance equipment and certain other costs related to the deployment of its WCDMA network in Chile. This loan had a floating interest rate based on LIBOR plus 2.50% (2.81% as of December 31, 2012). During the second quarter of 2013, the entire amount outstanding ($150 million) under Nextel Chile's loan was repaid by NII Holdings. Nextel Chile was originally a subsidiary mobile phone company of the US-based communications company of the same name, NII Holdings Inc. In 2015, the company was acquired by a British firm, Novator Partners, and in July of that year, Nextel Chile was dissolved and rebranded as WOM (Word of Mouth).

Additional details

1. The exact size of CDB’s contribution is unknown. For the time being, AidData assumes that the 2 members of the lending syndicate contributed equally ($75 million) to the $150 million loan.

Number of official sources

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Number of total sources

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