China Eximbank provides RMB 80 million loan to support the establishment of Congo-Chine Télécom

China Eximbank provides RMB 80 million loan to support the establishment of Congo-Chine Télécom On December 14, 2000, the Export-Import Bank of China signed a RMB 80 million ($9,664,765.67) concessional loan agreement with the Ministry of Finance of the Democratic Republic of Congo (DRC).

The proceeds of loan, which is captured via Record ID#382, were used to support the creation of joint venture between ZTE and the Congolese Office of Post Telecommunications (OCPT) in Kinshasa, called Congo-Chine Télécoms (CCT) or Congo-China Telecom S.A.R.L. (CCT) (Chinese name: 刚中电讯有限公司).

ZTE held a 51% equity stake in the joint venture, and OCPT held a 49% equity stake.

Most of the loan proceeds were used to be used by the borrower to acquire equipment from ZTE and thereby build CCT’s telecommunications network in the DRC.

According to the Aid Management Platform (AMP) of the Government of the Democratic Republic of Congo, the loan achieved a 100% disbursement rate ($9,665,149.43 out of $9,664,765.67). CCT launched GSM-900/1800 services on December 31, 2001 in Katanga in the east of the country.

It subsequently rolled out services to Kinshasa, Bas-Congo, Bandundu and the two provinces of Kasai, giving it coverage in 40 cities.

The CCT network, at the time, had a capacity for 150,000 customers, with a single switch in Kinshasa, and it used a Belgacom earth station for its international gateway.

Then, on March 11, 2006, ZTE Corporation signed a sales contract and a service contract with Congo-Chine Télécoms (CCT) worth $123 million.

On June 29, 2007, the China Development Bank (as arranger, initial lender and facility agent) signed the Phase I and Phase II loan facility agreements with CCT (as borrower). The aggregate loan amount was $105 million (covering Phase I with $63 million and Phase II with $42 million).

The proceeds of the loan, which is captured via Record ID#60113, were to be used to finance CCT’s payments to ZTE Corporation worth 85% of the cost of the 2006 sales and service contract.

The 2007 loan was guaranteed by the ZTE Corporation's 51% equity interest (see Record ID#383) in Congo-Chine Télécom (CCT).

The Ministry of State-owned Enterprises of Congo (Kinshasa) provided a counter-guarantee by pledging its 25% equity interest in CCT.

The loan was also secured with (i.e. collateralized against) fixed assets purchased by the borrower with the loan proceeds.

Then, on October 20, 2011, France Telecom-Orange (FT-Orange) acquired a 100% ownership stake in CCT (the majority of which was assumed debt), buying the 51% ownership stake held by the ZTE Corporation and the 49% ownership stake held the Congolese State.

Under the terms of a share purchase agreement signed with ZTE Corporation, FT-Orange agreed to pay $10 million (EUR 7 million) to the Chinese equipment manufacturer for its 51% stake in CCT.

Under the terms of a share purchase agreement signed with the Government of the Democratic Republic of Congo (after a call for tenders), FT-Orange agreed to pay $7 million (EUR 5 million) to the Government of the Democratic Republic of Congo for its 49% stake in CCT. CCT was renamed ‘Orange RDC’ and the Orange brand was introduced to the DRC on December 6, 2012.

As part of the October 2011 acquisition, Orange RDC (formerly Congo Chine Télécoms or CCT) signed a $276,250,000 loan agreement with China Development Bank (captured via Record ID#95662).

The proceeds of the loan were to be used by the borrower to repay the outstanding (assumed) debts of CCT and to expand CCT’s existing telecommunications network.

In the last quarter of 2011, FT-Orange also announced that ZTE Corporation would provide it with infrastructure and services as a preferred supplier, drawing upon ‘strategic financing support’ from China Development Bank.

Following the October 2011 acquisition, FT-Orange invested CDF 87.4 billion ($89.6 million) to expand and enhance CCT’s telecommunications network, including an upgrade to 3G. Orange RDC had 1.8 million mobile customers as of December 2012. By the end of 2014, Orange RDC had 14.3 million mobile customers.