IFC reviews Guondong mobile network expansion deal
The IFC is reviewing a financing to Guodong Network Communication Group - China’s largest privately owned independent tower company - to roll out a $145 million project to expand the firm’s tower network.
The project, which will improve the capacity of mobile networks by rolling out more than 9,000 towers shared by several operators to deploy 4G and 5G in nine low-income provinces in China, marks the IFC’s first investment in China’s tower subsection.
Financed on a 68/32 debt-to-equity ratio, the IFC intends to provide up to $99 million to the project via a 5-year US dollar-denominated senior debt package, comprising an IFC A loan – up to $40 million; a B1 loan – up to $19.6 million; a Managed Co-Lending Portfolio Program (MCPP) B2 loan – $19.4 million; and an IFC trust loan in its capacity as MCPP’s implementing entity – up to $20 million. Guodong will put up an equity commitment of $46 million.
MCPP, which has at least eight global investors, is IFC’s syndications platform. IFC anticipates that its board of directors will review the proposed debt package on 18 January 2021.
