ICBC provides ZAR 1.3 billion loan to Cell C for second Frame Supply Agreement (FSA2) (Linked to Record ID#58629)

ICBC provides ZAR 1.3 billion loan to Cell C for second Frame Supply Agreement (FSA2) On March 30, 2015, Cell C Limited (or “Cell C”), a South African telecommunications company, entered into a second Frame Supply Agreement (FSA2) with Huawei relating to the supply of RAN equipment and the upgrade and expansion of their LTE, MBT, and microwave networks.

In the same year, Cell C entered into a Capex loan facility of $240 million and ZAR 1.3 billion with the Industrial and Commercial Bank of China (ICBC) to finance this FSA2 (see Record ID#58629 for the $240 million loan).

A 2017 circular to stockholders from Blue Label Telecom (majority stakeholder of Cell C) listed the current value of the loan at R43.051 million (2015: R0 million, 2014: R0 million) with an undrawn facility of R1 256.949 million. The loan bears an interest of JIBAR plus a 3.45% margin, which is accrued monthly and settled quarterly.

A percentage of the capital outstanding is repayable annually based on a sliding scale; the balance includes R0.421 million accrued interest. The loan's final maturity date is June 30, 2023 and it is 50% guaranteed by Oger Telecom Limited.