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Overview

China Eximbank provides a CAD 350 million export buyer's credit to Public Mobile for the procurement of a wireless data network from ZTE

Commitments (Constant USD, 2023)$436,806,374
Commitment Year•2010Country of Activity•CanadaDirect Recipient Country of Incorporation•CanadaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 25, 2010

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Public Mobile

Implementing agencies

State-owned companies

  • ZTE Canada Inc.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Eximbank provides a CAD 350 million export buyer's credit to Public Mobile for the procurement of a wireless data network from ZTE

Interest type•Unknown

Narrative

Full Description

Project narrative

On June 25, 2010, the Export-Import Bank of China (China Eximbank) agreed to loan CAD 350 million in export buyer's credit to Public Mobile. The loan, along with an undisclosed amount of private equity, financed Public Mobile's contract with ZTE, under which ZTE, through its Canadian subsidiary ZTE Canada, worked with Public Mobile to design, build, and operate the expansion of the company's CDMA2000 mobile wireless network across Ontario and Quebec. The terms of the deal are unknown, but the interest rate was described as "really low, really competitive" and in the "mid-single digits" by Alek Krstajic, CEO of Public Mobile at the time. The loan was backed by export credit insurance from SINOSURE. The loan memorial was signed at the 4th Canada China Business Forum. The event, occurring in Ottawa, was attended by China's Commerce Minister, National Development and Reform Commission Director, and Canada's International Trade Minister.

Staff comments

1. Although most China Eximbank export buyer's credit loans are denominated in USD, this loan was explicitly denominated in CAD to allow Public Mobile to avoid hedging. 2. This project is assumed to be completed based on available coverage cited on Public Mobile's website. 3. The implementation start and end dates are currently unknown.