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Bank of China provides $25 million buyer’s credit loan for the 3G and 4G Wireless Project
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | Telecommunications Company Suriname (Telesur) |
| Country | Suriname |
| Start Date | Nov 19, 2014 |
| End Date | Apr 24, 2033 |
| Duration | 6,731 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 97696 |
Grant Description
Bank of China provides $25 million buyer’s credit loan for the 3G and 4G Wireless Project On November 19, 2014, the Shenzhen Branch of Bank of China and Telesur (Suriname’s state-owned telecommunications company) signed a $25 million term loan facility agreement for the 3G and 4G Wireless Project.
The borrower was expected to make ten, equal, semi-annual principal payments (worth $2.5 million each) between May 19, 2017 and November 19, 2021. The loan was repaid in full.
The borrower (Telesur) was expected to use the proceeds of the loan to finance 85% of the cost of two commercial (equipment supply and implementation service) contracts that it signed with Huawei International Pte. Ltd. and Huawei Technologies (T&T) Ltd. on September 28, 2012 and September 1, 2014. The borrower was also required to purchase a buyer's credit insurance policy from Sinosure.
The purpose of the project was to purchase and install equipment in support of the rollout of a 3G and 4G wireless telecommunications network in Suriname. Huawei International Pte. Ltd. and Huawei Technologies (T&T) Ltd. were the contractors responsible for implementation. Their work was overseen by Telesur.
The implementation of the project commenced in 2014 and reached completion in 2016.
The user revenues generated by the project were reportedly sufficient to ensure timely repayment of the loan from Bank of China.
Staff Comments
- The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this loan.
- Hogan Lovells served as a transaction adviser.
- A confidential source with direct knowledge of the transaction informed AidData of the loan's commitment date, face value, borrowing terms, credit enhancement arrangement, and repayment.
- 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.
- The Sinosure insurance premium was a flat fee ($1,402,500) based on a percentage (5.61%) of the total loan commitment amount.
- The equipment supply and implementation service contract identification number of the September 1, 2014 contract is 0007401105250F.
Sources & References
- 陈宗伟参赞会见华为公司苏里南业务负责人
- LENING TELESUR VEREIST TRANSPARANTIE, jaarverslag 2016
- Telesur Jaarverslag 2017
- 中国银行深圳市分行：全心共筑中国梦 在时代发展中砥砺前行
- 深圳中行：全心共筑中国梦 在时代发展中砥砺前行
- 中国银行深圳市分行成立四十周年系列报道 经济篇
- Telesur Annual Report 2017
- History - Telesur Suriname 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
Telecommunications Company Suriname (Telesur)
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