ICBC and Standard Bank provide a ZAR 2.251 billion buyer's credit to Telkom in South Africa
Commitment amount
$ 88010750.34854138
Adjusted commitment amount
$ 88010750.35
Constant 2021 USD
Summary
Funding agency [Type]
Industrial and Commercial Bank of China (ICBC) [State-owned Commercial Bank]
Recipient
South Africa
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
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.
Additional details
Number of official sources
2
Number of total sources
3
Details
Cofinanced
Yes
Cofinancing agencies [Type]
Standard Bank of South Africa Ltd. [Private Sector]
Direct receiving agencies [Type]
Telkom SA SOC Limited [Private Sector]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Loan Details
Maturity
10 years