China Eximbank provides a $34 million buyer's credit loan for the acquisition of Huawei equipment
Commitment amount
$ 61174989.018059395
Adjusted commitment amount
$ 61174989.02
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Kazakhstan
Sector
Communications (Code: 220)
Flow type
Loan
Level of public liability
Other public sector debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On November 8, 2007, the Export-Import Bank of China and Kazkomemrtsbank JSC signed a buyer's credit loan agreement to finance Kazakhstani mobile operator Mobile Telecom Service LLP's purchase of equipment from Huawei Technologies Co., Ltd. The loan carried a maturity of seven years and a flexible schedule of repayment, based on the profit generated by the project. The loan sought to further the development of Mobile Telecom Service's Global System for Mobile Communications (GSM) network. Mobile Telecom Service was a new GSM-operator in Kazakhstan that provided its services under the trademark "NEO." The commercial start of its network took place February 14, 2007; its network covered 45 cities in Kazakhstan in 2007, with plans to expand to 84 by the end of that year. In 2007, 51% of Mobile Telecom Service was owned by Kazakh state-owned Kazakhtelecom JSC. It appears that Kazkommertsbank JSC then used the proceeds from the export credit agreement to on-lend to Mobile Telecom Service LLP.
Number of official sources
1
Number of total sources
3
Details
Cofinanced
No
Direct receiving agencies [Type]
Kazkommertsbank JSC [Private Sector]
Indirect receiving agencies [Type]
Mobile Telecom Service LLP [State-owned Company]
Implementing agencies [Type]
Huawei Technologies Co., Ltd. [Private Sector]
Kazkommertsbank JSC [Private Sector]
Mobile Telecom Service LLP [State-owned Company]
Loan Details
Maturity
7 years