Kcell announces intention to place 3-year bonds

 

Almaty, 14 December 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, plans to place 3-year bonds in the total amount of KZT 30 billion, with the coupon rate set at 11.5%, on the Kazakhstan Stock Exchange. The Company received all the necessary approvals for the bond registration from National Bank of the Republic of Kazakhstan on 12 December 2017.

The bond issuance will expand and diversify Kcell’s funding sources, increase the average term of its financial liabilities and decrease funding costs.

This placement is planned within a bond programme for a total nominal volume of KZT 50 billion.

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

 

Notes to editors

  • Number of the announced securities for placement (bonds): 30,000,000 (thirty million)
  • Registration number of the bond programme: F72
  • The national identification number for bond issue: KZP01Y03F725

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.