Active Development AidData Chinese Aid

CDB participates in $362 million syndicated loan to Econet Wireless Group for refinancing and equipment purchase purposes

$51.71M USD

Funder	China Development Bank (CDB)
Recipient Organization	Econet Wireless Global Limited
Country	Africa, regional
Start Date	May 23, 2012
End Date	Aug 30, 2028
Duration	5,943 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105666`

Grant Description

CDB participates in USD $362 million syndicated loan to Econet Wireless Group for refinancing and equipment purchase purposes in 2012 On May 23, 2012, Econet Wireless Global Limited — a telecommunications company — signed a $362,000,000 syndicated loan (facility) agreement with AfriEximbank, Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG), Societe De Promotion Et De Participation Pour La Cooperation Economique (PROPARCO), China Development Bank Corporation (CDB), Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO), Industrial Development Corporation of South Africa (IDC), and Exportkreditnämnden (EKN).

📋 Loan / Grant Terms

💰 Loan Amountcarried a 5-year maturity and a blended interest rate of LIBOR plus a 5

📅 Maturity5 years

The borrower was expected to use the proceeds of the loan to refinance its existing debts and purchase equipment. $307 million was earmarked for use by Econet Wireless Zimbabwe (EWZ) ($255 million to re-finance existing short-term facilities and $52 million to finance equipment purchases and thereby upgrade Econet's telecommunications network infrastructure in Zimbabwe).

The remainder was earmarked for upgrade the telecommunications network infrastructure of Econet’s operating subsidiaries in Burundi, through the importation and commissioning of GSM network equipment from ZTE Corporation and Ericsson.

📋 Staff Comments

EWZ is the Zimbabwean subsidiary of Econet Wireless Group.
The individual contribution of China Development Bank to the $362 million syndicated loan is unknown. For the time being, AidData assumes equal contributions ($51,714,285) across the seven known members of the syndicate. This issue warrants further investigation.
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.

📚 Sources & References

Syndicated loans, emerging markets - news in brief
May 25 2012
Econet calls in development bank loan
Clyde & Co Advises on US$362m Telecoms Financing Deal
London - Econet Wireless group has concluded a $362m loan facility 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

Econet Wireless Global Limited

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