ICBC contributes to ZAR 2.251 billion syndicated buyer’s credit loan to Telkom SA SOC for the acquisition of Huawei 4G equipment

In 2020, Telkom SA SOC Limited signed a ZAR 2.251 billion syndicated buyer’s credit loan agreement with the Industrial and Commercial Bank of China (ICBC) and South Africa Standard Bank. The loan carries a 10-year maturity and an unknown interest rate. The borrower also purchased buyer’s credit insurance from Sinosure. The loan proceeds are to be used by the borrower to partially finance a $175 million commercial contract with Huawei Technologies Co., Ltd. The purpose of the project is to acquire and 4G equipment from Huawei Technologies Co., Ltd

Additional details

1. The Chinese project title is 出口南非TELKOM项目. 2. Telkom SA SOC Limited is a South African wireline and wireless telecommunications provider, operating in more than 38 countries across the African continent. Telkom is majority-privatized with it being 39% state-owned enterprise. 3. This project was reportedly the first of its kind where the medium and long-term export credit insurance is financed by a bank in local currency and local currency policy is issued by Sinosure. The insured sum is ZAR 3.596 billion. 4. The individual contributions of ICBC and South Africa Standard Bank are unknown. For the time being, AidData assumes equal contributions across the two members of the loan syndicate.

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