Active Mixed AidData Chinese Aid

CDB provides $250 million non-Sinosure-covered credit agreement with Nextel Brazil for construction of 3G network (Linked to Record ID#59821)

$250M USD

Funder	China Development Bank (CDB)
Recipient Organization	Nextel Brazil
Country	Brazil
Start Date	Apr 20, 2012
End Date	May 15, 2033
Duration	7,695 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`60229`

Grant Description

CDB provides $250 million non-Sinosure-covered credit agreement with Nextel Brazil for construction of 3G network On April 20, 2012, China Development Bank (CDB) signed a $500 million credit facility agreement with Nextel Telecomunicações Ltda. (“Nextel Brazil”), the Brazilian operating subsidiary of NII Holdings, Inc., to finance the cost of network infrastructure equipment and the deployment of the WCDMA (3G phone) network in Brazil, a collaboration between Huawei and Nextel.

According to a 2019 SEC filing, the $500 million credit facility was divided into a $250 million Sinosure Credit Agreement and a $250 million non-Sinosure Credit Agreement.

Record ID#60229 records the $250 million non-Sinosure Credit Agreement and Record ID#59821 records the Sinosure Credit Agreement.

📋 Loan / Grant Terms

💰 Loan Amountagreements include a floating interest rate set to LIBOR plus 2

📅 Maturity10 years

⏳ Grace Period3 years

Assets purchased using the amounts borrowed under Nextel Brazil's equipment financing facilities are pledged as collateral.

There are signs that the $500 million CDB credit facility has financially underperformed vis-a-vis the original expectations of the lender.

According to the US Securities and Exchange Commission, Section 10.4 of the report indicates that Nextel Brazil amended and restated both the Sinosure and non-Sinosure credit agreements it made with China Development Bank. "Final Amendments" include 1) the deferral of principal payments and certain financial compliance for the first 48 months until June 30 2020, 2) Nextel Brazil will be subject to minimum cash and minimum receivable requirements, 3) Loan maturity will be 98 months from when Final Amendments become effective.

Additionally, Nextel Brazil will grant additional security interests to CDB and Banco de Brasil SA and Caiza Economica Federal (the latter two have separate agreements with Nextel) in the form of preferential rights to amounts held in Nextel Brazil’s bank accounts and will pledge certain of its equipment and property to these lenders.

📋 Staff Comments

The Sinosure-covered loan agreement can be accessed in its entirety via https://content.edgar-online.com/ExternalLink/EDGAR/0001037016-17-000039.html?hash=01275772374562477f1860c16b691ff4c0eca24827332a725ebeba28384882a6&dest=A102CDBNONSINOSURE_HTM#A101CDBSINOSURE_HTM.
The non Sinosure-covered loan agreement can be accessed in its entirety via https://content.edgar-online.com/ExternalLink/EDGAR/0001037016-17-000039.html?hash=01275772374562477f1860c16b691ff4c0eca24827332a725ebeba28384882a6&dest=A102CDBNONSINOSURE_HTM#A102CDBNONSINOSURE_HTM.
The amended and restated agreement from 2017 can be accessed it its entirety via https://www.dropbox.com/s/oyvixpqev84eu2x/Brazil%202017%20CDB%20Amended%20Loan%20with%20Nextel%20Telecomunica%C3%A7%C3%B5es%20S.A.pdf?dl=04. 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

AMENDED AND RESTATED CREDIT AGREEMENT
BrazilCentralBank_September102018
Depois de lançar o serviço para o Estado de São Paulo, a Nextel anunciou o...
Exhibit 10.2 Amended and Restated Credit Agreement (Non-Sinosure)
Form 8-K NII Holdings
Inc.
Huawei to build out Nextel 3G networks in Brazil
Mexico
Nextel
Nextel Brasil expande cobertura 3G y llega a cuatro nuevas ciudades
Nextel quietly launches commercial 3G operations
NII Holdings Announces Completion Of Loan Amendments And Release Of Performance Bonds
PURCHASE AGREEMENT BY AND AMONG AMÉRICA MÓVIL
S.A.B. de C.V.
AS PURCHASER
NII INTERNATIONAL HOLDINGS S.À R.L.
AS SELLER
AI BRAZIL HOLDINGS B.V.
AND NII HOLDINGS
INC.
驻圣保罗代总领事胡英出席国家开发银行和巴西Nextel公司贷款项目签约仪式 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

Nextel Brazil

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