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

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.

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