China Eximbank provides $135 million buyer’s credit loan for Myanmar Communication Infrastructure Construction Project

In 2012, China Eximbank and Myanmar Fiber Optic Communication Network Co., Ltd. (MFOCN or 缅甸光纤通信网络有限公司) — a project company and subsidiary of HyalRoute Communication Group Ltd. (HyalRoute) — signed a $135 million buyer’s credit loan agreement for the Myanmar Communication Infrastructure Construction Project. The borrowing terms of the loan are unknown. MFOCN secured a corporate guarantee from HyalRoute Communication Group Limited for the loan from China Eximbank and purchased buyer’s credit insurance from Sinosure. MFOCN also pledged fiber optic network assets (worth $203 million) as sources of collateral. The purpose of the Myanmar Communications Infrastructure Construction Project is to install a 62,000 km national fiber optic cable (FOC) network and 1,000 telecom towers over 3 phases. As of March 2018, MFOCN had completed a total of 23,218 km of FOC.

Additional details

1. This project is also known as the HyalRoute Fiber Optic Cable Network Project. 2. It is unclear which phase of the Myanmar Communication Infrastructure Construction Project was supported by this $135 million China Eximbank loan. This issue requires further investigation. 3. It is unclear when the China Eximbank loan was issued. For the time being, AidData assumes a loan commitment year of 2012 because Myanmar Fiber Optic Communication Network Co., Ltd (MFOCN) — the special purpose vehicle responsible for the Myanmar Communication Infrastructure Construction Project — was established on May 22, 2012. However, this issue requires further investigation. 4. HyalRoute Communication Group Limited is a Singapore-based company that is owned by HyalRoute Group, a Shenzhen-headquartered telecom infrastructure company.

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