Bank of China provides $49.2 million loan to Kazakhtelecom to purchase Huawei equipment

On April 15, 2009, Kazakhtelecom JSC -- Kazakhstan's largest fixed-line telecommunication operator, which is 51% owned by Kazakhstani state-owned National Welfare Fund Samruk-Kazyna -- and Bank of China (BOC) and Huawei Technologies Co., Ltd. signed a tripartite memorandum of understanding (MOU) for the financing of telecommunication development projects in Kazakhstan. Then, in 2011, BOC issued a $49.2 million loan to Kazakhtelecom JSC to purchase Huawei equipment. Per the loan agreement, BOC transferred the loan proceeds of directly to Huawei. The borrowing terms of the loan are unknown.

Additional details

1. The status field is set to 'Completion' because it appears that the loan fully disbursed. 2. Some sources claim this was a $25.6 million USD in the first half of 2011 (for example, pg.12 of "Результаты за 1 полугодие 2011 года"); in all likelihood, this was the first tranche of this larger loan. Kazakhtelecom reported the loan as ₸7,236,607,00 KZT ($49,344,629.18 in USD-2011 terms), but this transaction amount was not used because official sources reported a USD amount and it is highly unlikely that BOC would directly transfer funds denominated in KZT to Huawei (see this loan amount at pg.49 of "Kazakhtelecom 2011 Annual Report").

Number of official sources

5

Number of total sources

8