November 11, 2021, Almaty. Kcell JSC and First Heartland Jusan Bank JSC have signed a KZT 60.5 billion credit facility agreement.
Under the agreement, Jusan Bank will open a line of credit for Kcell for the period until 2024. The credit line will be used by the mobile provider to refinance existing loans and to implement its five-year development strategy.
“Kcell is a leading provider of mobile services in Kazakhstan that has gained a reputation of a sustainable and reliable player in Kazakhstan’s telecom market. This long-term and large credit transaction with Jusan Bank, accounting for 29% of Kcell’s net book value, will certainly wield major influence on the continued active development of the company and will have a positive impact on the growing ecosystem of Jusan as a whole,” said Aibek Kayip, Chairman of the Board of Jusan Bank.
“Kcell and Jusan Bank have a lot in common. Strategically, we are moving in one direction with our extensive and ambitious plans to become the best digital companies in our segments. This agreement will lay a solid foundation for our strategic partnership. I am confident that projects like this will result in a successful collaboration between the bank and the mobile carrier in the development of unique ecosystems. We appreciate the trust and support we are getting from one of the most innovative financial institutions in the country. The signed agreement once again testifies to the high credit quality of Kcell,” said Yuri Kharlamov, Chairman of the Management Board of Kcell JSC.
Kcell plans to utilize attracted funds on the implementation of its 2022-2026 development strategy aimed at the deployment of an integrated network to improve service quality, including in rural areas, introduction of a new digital billing system, as well as the deployment of the 5G network.
It should be noted that the Board of Directors of Kcell JSC approved for attracting external funding from First Heartland Jusan Bank JSC on October 29, 2021.
About Jusan Bank
“First Heartland Jusan Bank” JSC (Jusan Bank) – one of the largest banks of Kazakhstan. The Bank develops an universal profile as well as creates own ecosystem that allows apart from other bank services to receive insurance and broker services and opens an access to marketplace Jusan Store. The Bank renders a whole range of the services: for corporate customers, retail customers, small and medium enterprises, Private Banking customers. The Bank’s global reach covers all Kazakhstan owing to the regional network and current digital services – Jusan and Jusan Business. The Bank’s financial strength is confirmed by an assessment of the top international rating agency – in June 2021 Moody’s Investors Service assigned Jusan Bank with the long-term ratings for the deposits in national and foreign currency at B1 level. A forecast of ratings is “Stable”.
Kcell is a national provider of the digital telecommunications services: mobile and fixed-mobile convergence (FMC) services, data transmission and Internet access, financial services, digital services and mobile applications, IT solutions in the field of system integration, the Internet of things, machine-to-machine connectivity, collection and processing of big data and cloud computing. Kcell is also a leading mobile operator in Kazakhstan providing the ‘smartphone+tariff’ service.
Kcell has become the largest digital ecosystem in Kazakhstan with a competitive advantage through its value-added services such as mobile financial services, mobile TV, online movies, music, books and magazines, as well as unique solutions for business customers. The company holds leading positions in the B2B market thanks to its strategy of vertical infrastructure solutions and development and implementation of the cutting-edge technologies. The company’s 4G/LTE network covers 67.5% of the country’s population and provides high quality services.
The company operates under its two brands – Kcell and activ that are widely recognized in our highly competitive telecom market due to the high quality of customer service. Thanks to its clear multi-brand architecture, Kcell increases its business efficiency in the B2C segment through optimal pricing for bundled offerings, customer base profitability management and network quality.