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Overview

ICBC contributes to a $1.25 billion syndicated loan for MTN Group Limited for general corporate and working capital purposes in September 2018 (Linked to Record ID#60246)

Commitments (Constant USD, 2023)$88,050,926
Commitment Year•2018Country of Activity•South AfricaDirect Recipient Country of Incorporation•South AfricaSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 28, 2018
Last repayment
Sep 27, 2023

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)

Cofinancing agencies

Private Sector

  • Bank of America Merrill Lynch International Limited
  • Citibank, N.A.
  • J. P. Morgan
  • Mitsubishi UFJ Financial Group
  • Mizuho Bank, Ltd.
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • MTN Group Limited

Implementing agencies

Private Sector

  • MTN Group Limited

Guarantors

Private Sector

  • MTN Group Limited

Loan desecription

In 2018, Bank of China and ICBC contribute to USD 1.25 billion syndicated loan for MTN Group Limited, South Africa

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On September 28, 2018, MTN Group Limited — a South African telecommunications company — signed a $1.25 billion syndicated revolving credit facility with 9 banks for general corporate and working capital purposes. The facility carries a 5-year maturity. However, its interest rate is unknown. ICBC and BOC provided 14% of total commitments. As such, AidData estimates that BOC contributed $87,500,000 (captured via Record ID#60246) and ICBC also contributed $87,500,000 (captured via Record ID#98759) to this syndicated loan. MTN Group Limited and its subsidiaries provided a guarantee for the RCF. Participants in the lending syndicate included Citi, Industrial and Commercial Bank of China Ltd., Bank of America Merrill Lynch, MUFG, Sumitomo Mitsui Banking Corporation, JPMorgan, Mizuho, Standard Chartered, and Bank of China. $200 million USD of the RCF was drawn down as of December 31, 2018.

Staff comments

1. Based in South Africa, MTN Group Limited is one of the largest emerging market telecommunications companies, with operations in 21 countries across Africa and the Middle East and c.221m subscribers. 2. The exact size of Bank of China and ICBC’s respective financial contributions to the $1.25 billion syndicated loan are unknown, expect for the fact that both banks provided 14% of the syndicated loan ($175,000,000). For the time being, AidData assumes that the two Chinese banks contributed equal amounts ($87,500,000). 3. The following lenders participated in the syndicated loan: Citi, which acted as Coordinator, Bookrunner, Senior Mandated Lead Arranger and Facility Agent; ICBC, which acted as Lead Arranger; Bank of America Merrill Lynch, which acted as Mandated Lead Arranger & Bookrunner; Mitsubishi UFJ Financial Group, which acted as Mandated Lead Arranger; Sumitomo Mitsui Banking Corporation, which acted as Mandated Lead Arranger; JPMorgan, which acted as Mandated Lead Arranger; Mizuho Bank, which acted as Mandated Lead Arranger; Standard Chartered, which acted as Lead Arranger; and BOC, which acted as Lead Arranger.