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Overview

ICBC provides ARS 975 million loan to Telecom Argentina

Commitments (Constant USD, 2023)$14,238,365
Commitment Year•2020Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 13, 2020
Last repayment (originally scheduled)
Apr 13, 2021

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)

Receiving agencies

Private Sector

  • Telecom Argentina S.A.

Loan description

ICBC provides ARS 975 million loan to Telecom Argentina

Grant element•0%Interest rate (t₀)•30.75%Interest type•Variable Interest RateMaturity•1 years

Narrative

Full Description

Project narrative

On April 13, 2020, Telecom Argentina signed a ARS 975 million loan contract with the Industrial and Commercial Bank of China (ICBC). The loan had an annual interest rate of BADLAR plus a 9.75%. The loan had a one year maturity period, with the entire principle due April 13, 2021 and interest to be paid monthly. Telecom's use for the loan proceeds is unknown.

Staff comments

1. AidData has calculated the all-in interest rate by adding the BADLAR rate at the end of April 2020 (18.4%) to the margin (9.75%) for a total of 28.15%. The rate at the end of April 2020 is taken from the Central Bank of Argentina's Monthly Monetary Report. 2. It is unclear if the loan contract was signed with ICBC's Argentine branch or a branch based in China; the language used in Telecom's financial statements is "Banco ICBC S.A." 3. Information about the loan can be found on page 63 of Telecom Argentina's 2020 Financial Statements (Memoria y Estados Financieros). 4. AidData estimates the interest by taking the BADLAR rate (21%) at the time of commitment plus the applicable margin (9.75%).