Active Mixed AidData Chinese Aid

CDB provides loan facilities worth $168.5 million for Warid GSM Telecom Network in Uganda and DRC

$168.5M USD

Funder	China Development Bank (CDB)
Recipient Organization	Warid Telecom (Private) Limited
Country	Africa, regional
Start Date	Jan 01, 2009
End Date	Sep 14, 2032
Duration	8,657 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`60347`

Grant Description

CDB provides loan facilities worth $168.5 million for Warid GSM Telecom Network in Uganda and DRC In 2009, China Development Bank (CDB) issued loan facilities worth $168.5 million to Warid Telecom (Private) Limited.

These facilities reportedly carried the following borrowing terms: 8-year maturities and interest rates of LIBOR plus 225 basis points.

The loan proceeds were to be used by the borrower to purchase equipment from Ericsson and Huawei Technologies, thereby supporting the implementation of the Warid GSM Telecom Network Project in Uganda and the Democratic Republic of Congo.

Some sources also suggest that the disbursed funds were used — at least in part — to repay the pre-existing debts of Warid Telecom (Private) Limited.

📋 Staff Comments

Some sources refer to a $112.5 million CDB loan to ‘Warid Telecom Uganda’. It is unclear if this reflects an on-lending arrangement between Warid Telecom (Private) Limited and Warid Telecom Uganda. 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.
As of 2015, Warid Telecom (Private) Limited was a wholly owned company of Warid Telecom Pakistan LLC. However, at the time that the loan was contracted, it was a joint venture.

📚 Sources & References

Arthur M. Katende
Usman Aziz Mir
Sim K. Katende
Nick Elverston
Ashurst in Africa
Annual Report 2010/11 - Singtel
SALE OF SHARES IN WARID TELECOM (PRIVATE) LIMITED
Singtel - Annual Report 2008/2009
Director's Report
VimpelCom Holdings B.V. 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.