Active Mixed AidData Chinese Aid

CDB Shenzhen Branch provides up to RMB 1.4 billion credit line to Telecom Argentina for equipment acquisition investment plan (linked to Record ID#93232)

¥1.4M RMB

Funder	China Development Bank (CDB)
Recipient Organization	Telecom Argentina S.A.
Country	Argentina
Start Date	Dec 14, 2020
End Date	May 08, 2026
Duration	1,971 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`93222`

Grant Description

CDB Shenzhen Branch provides up to RMB 1.4 billion credit line to Telecom Argentina for equipment acquisition investment plan On December 14, 2020, the Shenzhen Branch of the China Development Bank (CDB) signed an agreement with Telecom Argentina, S.A., which provided a line of credit of up to RMB 700 million initially.

The credit line was eligible to increase to RMB 1.4 billion if insurance could be secured from China Export & Credit Insurance Corporation (Sinosure). This increase appears to have occurred, but on an unknown date. In order to access the pledged funds, Telecom Argentina was required to sign subsequent loan agreements.

As of July 2022, loan agreements worth a total of RMB 749.3 million had been signed. These drawn down funds are captured via Record ID#93232. These included the following: December 24, 2020: first tranche, worth RMB 19.6 million.

All of 2021: second though ninth tranches, worth RMB 449 million total First half of 2022: RMB 244 million total, including the tenth tranche worth RMB 25.9 million signed January 21. July 27, 2022: one tranche (unknown number) worth RMB 36.7 million.

📋 Loan / Grant Terms

💹 Interest Rate6.8%

Telecom Argentina reported that the funds were to be used to finance an investment plan related to the acquisition of telecommunications equipment. However, the specific projects to be financed are unknown. It is also unknown if the drawn down funds have been utilized.

📋 Staff Comments

It is assumed that Sinosure insurance was secured, insofar as the total amount signed in loan agreements has reached over RMB 700 million. This implies more than RMB 700 million needs to be available in the credit line.
This project is considered an umbrella to avoid double counting with project #93232, which captures the amount of the total credit line which has actually been committed via a loan contract.

📚 Sources & References

Telecom Argentina S.A. Memoria y Estados Financieros al 31 de diciembre de 2020
TELECOM ARGENTINA S.A. ESTADOS FINANCIEROS AL 30 DE JUNIO DE 2022
Memoria y Estados Financieros al 31 de diciembre de 2021
Cablevisión Holding S.A. 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.