Active Commercial AidData Chinese Aid

Bank of China and Huawei provide seller's credit worth $200 million for 4G telecommunication infrastructure network

$200M USD

Funder	Bank of China (BOC)
Recipient Organization	Huawei Technologies Co., Ltd.\|Telecom Egypt
Country	Egypt
Start Date	May 30, 2018
End Date	Jul 19, 2026
Duration	2,972 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`65993`

Grant Description

Bank of China and Huawei provide seller's credit worth $200 million for 4G telecommunication infrastructure network On May 30, 2018, Telecom Egypt — a state-owned telecommunication company in Egypt — signed a $200 million seller’s credit facility (vendor financing) agreement with Huawei Technologies Co., Ltd.

Huawei, in turn, secure a $200 million export seller’s credit from Bank of China.

📋 Loan / Grant Terms

💰 Loan Amountinsurance for the facility

📅 Maturity4 years

⏳ Grace Period2 years

The proceeds of the loan were to be used by Telecom Egypt to purchase goods and services from Huawei Technologies Co., Ltd. and support the rollout of its 4G telecommunication infrastructure network.

📋 Staff Comments

1. Telecom Egypt (Arabic: المصرية للاتصالات‎), is Egypt's primary telephone company. It started in 1854 with the first telegraph line in Egypt. In 1998, it replaced the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). It is 80% owned by Egypt's Ministry of Communications and Information Technology.

📚 Sources & References

Huawei Helps Telecom Egypt Secure a $200M Loan to Fund 4G Rollout
Telecom Egypt
Huawei sign $200M long term financing agreement
Telecom Egypt borrows $200m from China
Annual Report 2018
Telecom Egypt obtains US$200 million long-term financing with Chinese financial institutions facilitated by Huawei
Telecom Egypt inks $200mn financing deal with China
Q1 2018 Earnings Release
Final Transcript AUERBACH GRAYSON: Telecom Egypt Q1 2018 Results
Annual report 2018
Approval on acquisition of MENA Cable by a subsidiary and obtaining long-term USD facilities
Q2 2018 Earnings Release 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.