China Eximbank provides $80 million secured loan for TPE Group’s Telecommunications Network Expansion Project

Project narrative

On August 14, 2015, China Eximbank signed an $80 million secured credit facility agreement with three borrowers — Total Play Telecomunicaciones, S.A. de C.V., Enlace TPE, S.A. de C.V. ,and Total Box, S.A. de C.V. — for the TPE Group’s Telecommunications Network Expansion Project. The loan carried the following borrowing terms: a 5.5 year maturity and an annual interest rate of 6-month LIBOR plus a 5% margin. The borrower was expected to make 11, equal, semi-annual principal repayments (worth $7.273 million each) to the lender. The loan was backed by a corporate guarantee from Comunicaciones Avanzadas, S. A. de C. V. (CASA) and an (unknown) source of collateral from Corporación RBS, S.A. de C.V. The purpose of the project was to fund the purchase of goods and services for the expansion of TPE Group’s telecommunications network in Mexico. As of December 31, 2017 and December 31, 2018, the borrowers were in breach of the China Eximbank loan contract provisions related to the minimum cash balance requirements, indebtedness limits, and the sale of certain assets. Despite the fact that the borrowers had triggered events of default, China Eximbank decided not to call the loan (i.e., demand full and immediate repayment). The borrowers repaid the loan in full on March 20, 2019.