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Overview

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

Commitments (Constant USD, 2023)$96,460,385
Commitment Year•2010Country of Activity•ChileDirect Recipient Country of Incorporation•ChileSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 1, 2010
End (actual)
Jun 30, 2015

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • HSBC (Hong Kong and Shanghai Banking Corporation)

Receiving agencies

Private Sector

  • Nextel Chile

Loan description

China Development Bank contributes to USD 150 million syndicated loan agreement for Chile WCDMA network project

Interest rate (t₀)•3.27656%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

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).

Staff comments

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.