Active Mixed AidData Chinese Aid

China Construction Bank contributes to $127 million syndicated loan for purchasing Huawei equipment and rolling out 8ta mobile network (linked to Record ID#59391, #100729)

$15.88M USD

Funder	China Construction Bank Corporation (CCB)
Recipient Organization	Telkom SA SOC Limited
Country	South Africa
Start Date	Jan 01, 2011
End Date	Jan 19, 2032
Duration	7,688 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`100730`

Grant Description

CDB, CCB, and Bank of China contribute to USD 127 million syndicated loan for Telkom SA Limited In January 2011, a consortium of eight banks signed a $127 million syndicated loan agreement with Telkom SA Limited (or “Telkom”) — a South African telecommunications company — for developing its mobile network in South Africa.

The banks included China Development Bank (CDB), Bank of China (BOC), China Construction Bank (CCB), Barclays Capital, Absa Capital, Citibank, HSBC and the Sumitomo Mitsui Banking Corporation. China Export and Credit Insurance Corporation (Sinosure) provided insurance for the syndicated loan.

📋 Loan / Grant Terms

📅 Maturity7 years

The facility is was expected to be fully utilized during the 2012 financial year and repayable over a 5-year period.

Record ID#59391 captures the estimated financial commitment of China Development Bank, Record ID#100729 captures the estimated financial commitment of Bank of China, and Record ID#100730 captures the estimated financial commitment of China Construction Bank.

The loan proceeds were earmarked for the purchase of telecommunications equipment from Huawei and for capital expenditures to support the rollout of the company’s 8ta mobile network. Further implementation details are unknown.

📋 Staff Comments

1. The individual contributions of China Development Bank, Bank of China, and China Construction Bank to the $127 million syndicated loan are unknown. For the time being, AidData assumes that each of the eight participating banks contributed equal amounts ($15,875,000).

📚 Sources & References

中国公司为南非电信巨头提供贷款
Abridged Integrated Annual Report 2011
Telkom secures R902m loan
中国公司为南非电信巨头提供贷款 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.