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Overview

ICBC and Standard Bank provide a ZAR 2.251 billion buyer's credit to Telkom in South Africa

Commitments (Constant USD, 2023)$81,307,347
Commitment Year•2019Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2019
Last repayment
Dec 29, 2028

Geospatial footprint

Map overview

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The purpose of this project was to provide buyer's credit to Telkom in South Africa Additional locational information can be found at: https://www.openstreetmap.org/way/423634834

Stakeholders

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

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Standard Bank of South Africa Limited (Standard Bank)

Receiving agencies

Private Sector

  • Telkom SA SOC Limited

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC contrubutes to ZAR 2.251 billion buyer's credit to Telkom in South Africa

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

In 2019, ICBC (中国工商银行) and Standard Bank (SBSA or 标准银行) have issued a syndicated buyer's credit worth ZAR 2.251 billion to South African telecom giant Telkom. The financing will be funded on a 50:50 basis between both the ICBC and the SBSA. Sinosure provided SA Rand 3.596 billion worth of insurance for this project. The SBSA also provided a down payment facility to facilitate the payment of the 15% deposit. The loan will be used by Telkom for purchasing the new 4G equipment from Huawei which has a value of USD600 million (ZAR9.7 billion) to support its next generation of products, and the loan will have a tenor of 10 years as made possible by Sinosure.. Thie funding is the first ZAR funding raised from China for Telkom.