Active Commercial AidData Chinese Aid

Bank of China provides KZT 13 billion revolving credit facility to Kcell

$13M USD

Funder	JSC AB Bank of China Kazakhstan
Recipient Organization	Kcell Joint Stock Company
Country	Kazakhstan
Start Date	Jul 25, 2019
End Date	Jun 05, 2032
Duration	4,699 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`91751`

Grant Description

Bank of China provides KZT 13 billion revolving credit facility to Kcell On July 25, 2019, Kcell Joint Stock Company (“Kcell”) — a state-owned mobile telecommunications company in Kazakhstan — and the Kazakhstan subsidiary of Bank of China ('AB Bank of China Kazakhstan JSC') signed a revolving credit facility agreement worth KZT 9.5 billion.

📋 Loan / Grant Terms

💹 Interest Rate10.5%

Kazakhtelecom JSC issued a corporate guarantee in support of the credit facility.

Then, on October 14, 2020, Kcell concluded an additional agreement with AB Bank of China Kazakhstan JSC to reduce the interest rate from 10.5 percent to 10.3 percent per annum.

Approximately, two months later, on December 8, 2020, Kcell concluded an additional agreement with AB “Bank of China Kazakhstan” JSC to increase the amount of the existing credit line from KZT 9.5 billion to KZT 11 billion with the interest rate of 10.3 percent per annum.

Then, on June 3, 2021, Kcell announced that it had entered into an additional agreement with AB “Bank of China Kazakhstan” JSC to increase the amount of the credit line from KZT 11 billion to KZT 13 billion and increased the final repayment date and period of loan availability until June 1, 2024.

📋 Staff Comments

1. The Kazakhstan Branch of Bank of China is also known as AB “Bank of China Kazakhstan” JSC2. Kcell Joint Stock Company (“Kcell”) was established as a limited liability partnership (GSM Kazakhstan ОАОKazakhtelecom LLP) on 1 June 1998 to design, construct and operate a cellular telecommunications network in the Republic of Kazakhstan, using the GSM (Global System for Mobile Communications) standard. The Company began its commercial operations in 1999 through direct sales and a network of distributors. Prior to 2 February 2012, the Company was owned 51 percent by Fintur Holdings B.V. («Fintur» or «Parent company») and 49 percent by Kazakhtelecom JSC («Kazakhtelecom»). Fintur itself is owned jointly by Sonera Holding B.V. («Sonera») and Turkcell Iletisim Hizmetleri A.S., with holdings of 58.55 percent and 41.45 percent, respectively. On 2 February 2012, the 49 percent stake in the Company owned by Kazakhtelecom was sold directly to Sonera, a subsidiary of Telia Company. On 1 July 2012, the General Meeting of the participants of GSM Kazakhstan approved a conversion of the Company from Limited Liability Partnership to Joint Stock Company («the Conversion»), with 200,000,000 common shares to be transferred to Fintur and Sonera in proportion to their ownership percentage. The General Meeting also approved the Company’s change of name to Kcell JSC. On 27 August 2012, the Ministry of Justice registered the Company as a Joint Stock Company. Under Kazakhstani law, upon the Conversion, retained earnings as of the date of the Conversion became share capital of the Company and ceased to be available for distribution to shareholders. On 13 December 2012, the Company successfully completed its offering of Global Depositary Receipts on the London Stock Exchange and common shares on the Kazakhstan Stock Exchange. The offering consisted of a sale by Sonera of 50 million shares, which represented 25 percent of the Company’s share capital. On 4 May 2016, the 24 percent stake in the Company owned by Sonera was sold directly to TeliaSonera Kazakhstan Holding B.V. («TeliaSonera Kazakhstan»), a subsidiary of Telia Company. The Company’s ultimate parent and controlling party is Telia Company. On 21 December 2018 Kazakhtelecom JSC has completed the purchase of 24 percent Kcell JSC shares owned by TeliaSonera Kazakhstan Holding B.V. and 51 percent shares owned by Fintur Holdings BV (joint venture of telecommunication companies owned by Telia Company (58,55 percent) and Turkcell (41,45 percent), respectively.

📚 Sources & References

Kcell JSC signs credit agreement with Bank of China Kazakhstan
Kcell gets new credit line from VTB , reduces interest on Bank of China revolverv
Kcell increases the amount of its credit line with Bank of China Kazakhstan
Kcell JSC Results for January-December 2021
Kcell increases the amount of its credit line withBank of China Kazakhstan
Kcell Q4 and 2020 Year-end Report, Выручка Kcell показала рекордные темпы роста впервые за 6 лет – на 4,3% 30723
Reduced interest rate on existing credit line with Bank of China Kazakhstan
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White & Case Advises Kazakhtelecom on Acquisition of Kcell
Annual Report 2021
Annual Report 2022
Financial statements 1Q 2024
Financial statements Y2023
Financial statements 3Q 2023
Financial statements 2Q 2023
Financial statements Y2022
Financial Statements
September 2022 (Финансовая отчетность, Сентябрь 2022)
Financial statements
Q2 2022 (Финансовая отчетность
II квартал 2022)
Consolidated Financial Statements for 2021 (Консолидированная финансовая отчётность за 2021 год)
IFRS financial statements
Q3 2021 (финансовая отчетность МСФО, 3 кв 2021)
IFRS Financial Statements
Q1 2021 (Финансовая отчетность МСФО, 1 кв 2021)
Consolidated financial statements for 2020 (Консолидированная финансовая отчётность за 2020 год)
IFRS Financial Statements
Q3 2020 (Финансовая отчетность МСФО, 3 кв 2020)
IFRS Financial Statements
Q1 2020 (Финансовая отчетность МСФО, 1 кв 2020)
Consolidated financial statements 12/31/2019 (Консолидированная финансовая отчетность 31.12.2019)
Financial statements 2Q 2024 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.