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Overview

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

Commitments (Constant USD, 2023)$55,915,660
Commitment Year•2011Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanSector•CommunicationsFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2011

Geospatial footprint

Map overview

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The Bank of China provides $49.2 million loan to Kazakhtelecom to purchase Huawei equipment. More detailed locational information can be found at: https://www.openstreetmap.org/way/230409094

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 Commercial Banks

  • Bank of China (BOC)

Receiving agencies

State-owned companies

  • Kazakhtelecom JSC

Implementing agencies

Private Sector

  • Huawei Technologies Co., Ltd.

State-owned companies

  • Kazakhtelecom JSC

Loan description

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

Interest type•Unknown

Narrative

Full Description

Project narrative

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.

Staff comments

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").