Bank of China and China Development Bank provide $1 billion credit facility to VimpelCom to fund the acquisition of Huawei equipment

On November 19, 2014, Bank of China (BOC) and China Development Bank (CDB) signed a $1 billion credit facility agreement with VimpelCom Holdings B.V, — the Netherlands-incorporated parent company of Russian telecommunications provider PJSC VimpelCom (owner of the Beeline brand) — to fund capital expenditures across the company's operations. The facility carried a maturity of eight years, is unsecured, and was guaranteed by VimpelCom Amsterdam B.V., a wholly-owned subsidiary of VimpelCom Holdings B.V. The facility carries an interest rate of LIBOR plus 306 basis points (bps) and was to be available to VimpelCom for three years (until November 2017). The proceeds from the facility were to be used to by the borrower finance equipment purchases by subsidiaries of VimpelCom Ltd. from Huawei Technologies Co. Ltd, its subsidiaries and affiliates. As of December 31, 2015, the facility had not been utilized.

Additional details

1. The all-in interest rate has been calculated using the 6-month LIBOR for November 2014 (0.327 + 3.06 = 3.33%). For more information, see here: https://www.global-rates.com/en/interest-rates/libor/american-dollar/2014.aspx

Number of official sources

4

Number of total sources

7