Completed Mixed AidData Chinese Aid

China Development Bank provides $360 million Capex loan to Cell C (Linked to Record ID#58626)

$360M USD

Funder	China Development Bank (CDB)
Recipient Organization	Cell C Limited South Africa
Country	South Africa
Start Date	Jun 09, 2011
End Date	Mar 17, 2030
Duration	6,856 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58631`

Grant Description

China Development Bank provides $360 million Capex loan to Cell C On June 29, 2011, the China Development Bank (CDB) and Cell C Limited (or “Cell C”) — a South African telecommunications company — signed a $360 million term facility (capex loan) agreement. The loan agreement was amended on September 27, 2011 and December 31, 2012.

Capex loans are used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment. The loan carried an interest rate of three-month Libor + a 2.5% margin, accrued monthly and settled quarterly. A percentage of the capital outstanding was repayable annually based on a sliding scale.

The loan was set to expire on June 29, 2019 and it was partially guaranteed by Oger Telecom Limited.

According to majority owner Blue Label Telecom's 2016 and 2017 circulars to shareholders, Cell C had fully drawn down the facility as of 2016. This loan was followed by a second CDB loan in 2014 (captured via Record ID#58626).

📋 Staff Comments

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.
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.

📚 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
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, 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.