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Overview

China Eximbank provides a $34 million buyer's credit loan for the acquisition of Huawei equipment

Commitments (Constant USD, 2023)$56,493,194
Commitment Year•2007Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 8, 2007
Last repayment (originally scheduled)
Dec 30, 2013

Geospatial footprint

Map overview

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The project was to to finance Kazakhstani mobile operator Mobile Telecom Service LLP's purchase of equipment from Huawei Technologies Co., Ltd. Tele2 is the new name of NEO/Mobile Telecom Service. More detailed locational information can be found at: https://www.openstreetmap.org/way/50878500

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Private Sector

  • Kazkommertsbank JSC

State-owned companies

  • Mobile Telecom Service LLP

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.
  • Kazkommertsbank JSC

State-owned companies

  • Mobile Telecom Service LLP

Loan desecription

China Eximbank provides a $34 million buyer's credit loan for the acquisition of Huawei equipment

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

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.