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ZTE contributes to $131 million loan to Cell C
| Funder | ZTE Corporation (formerly Zhongxing Telecommunication Equipment Corporation) |
|---|---|
| Recipient Organization | Cell C Limited South Africa |
| Country | South Africa |
| Start Date | Dec 18, 2015 |
| End Date | Mar 02, 2030 |
| Duration | 5,188 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 105365 |
Grant Description
In 2015, CDB and ZTE contribute to USD 131 million loan agreement to Cell C, South Africa On December 28, 2015, China Development Bank (CDB) and ZTE signed $131 million facility (loan) agreement with Cell C Limited (or “Cell C”) — a South African telecommunications company — for unspecified purposes.
Record ID#58626 captures CDB's estimated contribution, and Record ID#105365 captures ZTE's estimated contribution. The loan carried an interest rate of six-month Libor plus a 3.5% margin, accrued monthly and settled half-yearly. The loan was set to expire on May 20, 2024. A percentage of the capital outstanding was repayable semi-annually based on a sliding scale.
The CDB/ZTE financing facility was 50% guaranteed by Oger Telecom Limited.
In a 2017 circular to shareholders, Blue Label Telecoms (a majority shareholder of Cell C) listed the disbursed amount as $46.245 million, with an undrawn facility of $84.755 million remaining. The balance includes accrued interest of $0.217 million.
In January 2020, Cell C defaulted on a R2.7 billion loan as well as capital plus interest payments on loan facilities from a number of banks, including China Development Bank. This loan followed an initial Capex facility offered in 2013 (captured via Record ID#58631).
Staff Comments
- AidData has coded the loan as collateralized because an official source indicates that the ICBC loan ‘shared in the First Ranking Security Interests in the Collateral, on an equal and rateable basis with the Holders and the other Senior Lenders, on the terms set out in the Intercreditor Agreement.’ The same source identifies the property and assets of Cell C Limited as the underlying source of collateral.
- Given that the individual contributions of the banks are unknown, AidData assumes equal contributions ($65,500,000) across the two members of the loan syndicate. AidData Record ID#58626 records China Development Bank's contribution and Record ID#105365 records the contribution from ZTE.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
- A capex loan (facility) is used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment.
Sources & References
- 2016 CIRCULAR TO BLUE LABEL SHAREHOLDERS
- Cell C Limited. $184,002, % First Priority Senior Secured Notes due 2020 LISTING PARTICULARS
- JUNE 2017 CIRCULAR TO BLUE LABEL SHAREHOLDERS
- Cell C Limited Preliminary Unaudited Financial information for the year ended 31 December 2018
- Shi Jiyang
- President of China-Africa Development Fund, and his delegation visited China-Africa TEDA for inspection and guidance, 8.625% First Priority Senior Secured Notes due 2020 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.
All Grantees
Cell C Limited South Africa
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