Kcell announces extension of credit facility with Halyk Bank JSC

 

Almaty, 22 November, 2017 – Kcell Joint Stock Company ("Kcell” or the “Company”) (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that its Board has approved the extension of a KZT 42 billion credit facility with Halyk Bank JSC along with certain amendments to the terms and conditions.

Under the new agreement, the facility will be extended until 2 December, 2022. The interest rate for all existing and new loans within the facility will be reduced to 12.5% p.a. (from 14.5%) whilst maturity for new tranches within the facility agreement will increase to 36 months.

The fully revolving credit facility will be used to fund opex and capex, including capex for 4G LTE licenses and/or refinancing of earlier capex for 4G LTE licenses.

The Board has also approved the extension of a KZT 8 billion loan within credit facility agreement with Halyk Bank until 2 December, 2019.

Contacts

 

Investor Relations

 

Irina Shol

Tel: +7 727 2582755, ext. 1002

Investor_relations@kcell.kz

   

Media

Natalya Eskova

Tel: +7 727 2582755, ext. 1902

Pressa@kcell.kz

   

International media

 

Instinctif Partners

Tel: +44 207 457 2020

Kay Larsen, Galyna Kulachek, Adrian Duffield

 

Company Overview

Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan.

In December 2012, Kcell successfully completed its offering of GDR’s on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share. The offering consisted of a sale by TeliaSonera of 50 million shares, which represent 25 percent of Kcell’s share capital.

Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G/4G network to expand coverage and to provide high quality services. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.