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CDB provides $42.5 million buyer’s credit loan for Huawei Fiber Optic Network Project (Linked to Record ID#66440)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | PT MNC Kabel Mediacom (MKM) |
| Country | Indonesia |
| Start Date | Jul 10, 2014 |
| End Date | Sep 09, 2026 |
| Duration | 4,444 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 66441 |
Grant Description
CDB provides $42.5 million buyer’s credit loan for Huawei Fiber Optic Network Project On July 10, 2014, China Development Bank (CDB) and PT MNC Kabel Mediacom (MKM) — a subsidiary of PT Global Mediacom Tbk (BMTR) — signed a $42.5 million buyer’s credit loan agreement for the Huawei Fiber Optic Network Project.
PT Bank Rakyat Indonesia Tbk served as the Security Agent for the loan and BMTR served as the Guarantor of the loan.
The carried a term of 7-years, including a grace period of 3-years, with an interest rate of 6-month LIBOR plus a 4.85% margin (without Sinosure insurance), or 6-month LIBOR plus a 3.45% margin (with Sinosure insurance). It is unclear if the borrower ultimately purchases the buyer’s credit insurance from Sinosure.
The borrower was to use the proceeds of the loan to purchase goods and/or services from Huawei Technologies Co., Ltd. and thereby build a fiber-optic network.
MKM also secured an $85 million buyer’s credit loan for a ZTE Fiber Optic Network Project (captured in Record ID#66440).
Staff Comments
- PT Global Mediacom Tbk (BMTR) is a private Indonesian media company.
- No sources explicitly state that this is a buyer's credit loan. AidData assumes this is the case for the following reasons: (1) The loan is provided to a foreign borrower, (2) the loan is denominated in USD, (3) the face value of the loan is explicitly identified in multiple official sources, (4) the loan is used to procure equipment from a Chinese company, and (5) the loan may have been insured by Sinosure, which provides export credit insurance.
- AidData has coded this transaction as a collateralized loan because PT Bank Rakyat Indonesia Tbk was selected as the security agent (i.e. collateral agent) for the loan. When lenders take collateral as security for their loans, a collateral/security agent is often appointed to enforce rights against the collateral in the event of the borrower’s default under the loan.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Ekspansi
- MNC Kabel Disuntik Pinjaman US$ 127,5 juta
- Consolidated Financial Statements
- BEI Asks about BMTR Share Guarantee at MNCN
- Global Mediacom Gadaikan Saham MNC Rp 2,1 Triliun
- Southeast Asia’s Largest and Most Integrated Media Group
- LK MNC Investama 30 September 2018
- Audited Financial Statements 31 Dec 2018
- PT MNC Investama Tbk 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
PT MNC Kabel Mediacom (MKM)
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