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Overview

Bank of China reschedules KZT 4.5 billion loan to Kazakhtelecom via interest rate reduction in October 2020

Commitment Year•2020Country of Activity•KazakhstanDirect Recipient Country of Incorporation•KazakhstanOverseas Jurisdiction•KazakhstanSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 14, 2020

Stakeholders

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

Funding agencies

State-owned Commercial Banks

  • JSC AB Bank of China Kazakhstan

Receiving agencies

State-owned companies

  • Kazakhtelecom JSC

Implementing agencies

State-owned companies

  • Kazakhtelecom JSC

Loan desecription

Bank of China reschedules KZT 4.5 billion loan to Kazakhtelecom via interest rate reduction in October 2020

Grant element•0%Interest rate (t₀)•10.3%Interest type•Fixed Interest RateMaturity•2.5 years

Narrative

Full Description

Project narrative

In 2019, Kazakhtelecom JSC - Kazakhstan's largest fixed-line telecommunication operator, which is 51% owned by Kazakhstani state-owned National Welfare Fund Samruk-Kazyna — signed a KZT 6,500,000,000 loan agreement (as part of a large line of credit arrangement) with Bank of China Kazakhstan JSC for unspecified purposes. The borrowing terms of the loan are unknown. Then, on March 16, 2020, Kazakhtelecom JSC signed a KZT 4,500,000,000 loan agreement (as part of a large line of credit arrangement) with Bank of China Kazakhstan JSC for unspecified purposes. The loan carried a 2.5 year maturity (final maturity date: August 20, 2022) and an interest rate of 10.5%. Then, on October 14, 2020, the parties signed an addendum to the loan agreement, reducing the interest rate from 10.5% to 10.3%. Then, on June 2, 2021, Kazakhtelecom JSC obtained additional loan tranche worth KZT 2,000,000,000 (with the same final maturity date) from Bank of China JSC as part of the same line of credit agreement. Kazakhtelecom JSC made interest payments worth KZT 571,364,000 between January 1, 2021 and June 30, 2021 and KTZ 675,508,000 between January 1, 2022 and June 30, 2022.