Bank of China provides KZT 13 billion revolving credit facility to Kcell

On July 25, 2019, Kcell Joint Stock Company (“Kcell”) — a state-owned mobile telecommunications company in Kazakhstan — and the Kazakhstan Branch of Bank of China ('AB Bank of China Kazakhstan JSC') signed a revolving credit facility agreement worth KZT 9.5 billion. The facility carried the following borrowing terms: a 36-month maturity and a 10.5% interest rate per annum. Kazakhtelecom JSC issued a corporate guarantee in support of the credit facility. Then, on October 14, 2020, Kcell concluded an additional agreement with AB Bank of China Kazakhstan JSC to reduce the interest rate from 10.5 percent to 10.3 percent per annum. Approximately, two months later, on December 8, 2020, Kcell concluded an additional agreement with AB “Bank of China Kazakhstan” JSC to increase the amount of the existing credit line from KZT 9.5 billion to KZT 11 billion with the interest rate of 10.3 percent per annum. Then, on June 3, 2021, Kcell announced that it had entered into an additional agreement with AB “Bank of China Kazakhstan” JSC to increase the amount of the credit line from KZT 11 billion to KZT 13 billion and increased the final repayment date and period of loan availability until June 1, 2024.

Additional details

1. The Kazakhstan Branch of Bank of China is also known as AB “Bank of China Kazakhstan” JSC 2. Kcell Joint Stock Company (“Kcell”) was established as a limited liability partnership (GSM Kazakhstan ОАОKazakhtelecom LLP) on 1 June 1998 to design, construct and operate a cellular telecommunications network in the Republic of Kazakhstan, using the GSM (Global System for Mobile Communications) standard. The Company began its commercial operations in 1999 through direct sales and a network of distributors. Prior to 2 February 2012, the Company was owned 51 percent by Fintur Holdings B.V. («Fintur» or «Parent company») and 49 percent by Kazakhtelecom JSC («Kazakhtelecom»). Fintur itself is owned jointly by Sonera Holding B.V. («Sonera») and Turkcell Iletisim Hizmetleri A.S., with holdings of 58.55 percent and 41.45 percent, respectively. On 2 February 2012, the 49 percent stake in the Company owned by Kazakhtelecom was sold directly to Sonera, a subsidiary of Telia Company. On 1 July 2012, the General Meeting of the participants of GSM Kazakhstan approved a conversion of the Company from Limited Liability Partnership to Joint Stock Company («the Conversion»), with 200,000,000 common shares to be transferred to Fintur and Sonera in proportion to their ownership percentage. The General Meeting also approved the Company’s change of name to Kcell JSC. On 27 August 2012, the Ministry of Justice registered the Company as a Joint Stock Company. Under Kazakhstani law, upon the Conversion, retained earnings as of the date of the Conversion became share capital of the Company and ceased to be available for distribution to shareholders. On 13 December 2012, the Company successfully completed its offering of Global Depositary Receipts on the London Stock Exchange and common shares on the Kazakhstan Stock Exchange. The offering consisted of a sale by Sonera of 50 million shares, which represented 25 percent of the Company’s share capital. On 4 May 2016, the 24 percent stake in the Company owned by Sonera was sold directly to TeliaSonera Kazakhstan Holding B.V. («TeliaSonera Kazakhstan»), a subsidiary of Telia Company. The Company’s ultimate parent and controlling party is Telia Company. On 21 December 2018 Kazakhtelecom JSC has completed the purchase of 24 percent Kcell JSC shares owned by TeliaSonera Kazakhstan Holding B.V. and 51 percent shares owned by Fintur Holdings BV (joint venture of telecommunication companies owned by Telia Company (58,55 percent) and Turkcell (41,45 percent), respectively.

Number of official sources

6

Number of total sources

11