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CamGSM gets $591m Chinese loan
08 November 2010
CamGSM, the owner of Cambodia’s Mobitel, has arranged a Chinese loan to buy Huawei kit and to refinance the purchase of Millicom’s stake in the unit
Bank of China
Cambodian mobile operator CamGSM, which operates with the Mobitel brand, has secured $591 million from Chinese banks to help pay for a contract with Huawei Technologies. The Bank of China acted as the main lender in the new credit facility.
The new loan will also enable CamGSM’s parent company, the Royal Group, to refinance a $421 million loan used to buy out a majority stake in Mobitel from Millicom International in 2009. The newly acquired financing would be put towards refinancing debt and funding Mobitel’s costs for capital expansion. CamGSM also uses the brand Cellcard.
Royal Group will use part of the $591million Chinese bank loan to refinance a $421million bridging loan from Standard Bank and Australia and New Zealand Banking Group. The company also signed a five-year network expansion contract with Huawei, worth $500 million. GTB