Project description
and objectives:
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The proposed project will consist of
(a) a USD 100 million A/B loan where the A-tranche, to be funded by the Bank,
will
(i) finance new capital investments in KaR-Tel’s network and
(ii) refinance short-term banks and/or suppliers credits and the B-tranche, to
be financed by commercial banks, will re-finance short-term loans from Kazakh
banks
(b) approximately USD 130 million of ECA backed vendor
provided or arranged financing and internally generated cash, which will
finance further new capital investments, refinance other indebtedness and
support other operations of K-Mobile.
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Transition impact:
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By participating in the project, the Bank will be supporting the expansion of
KaR-Tel, the second GSM operator in Kazakhstan. Following its recent
acquisition by Vimpelcom of Russia, KaR-Tel is embarking on a fresh round of
significant capital expenditures to upgrade its network. The Bank’s financing
will allow KaR-Tel to
(i) improve the quality of its service and extend its geographical coverage
thus making KaR-Tel better competitor
(ii) further strengthen competition in Kazkahstan’s mobile market and (iii)
encourage further FDI in to the telecoms sector of Kazakhstan.
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The client:
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KaR-Tel LLP, operating under brand name K-Mobile, is the second largest GSM
network operator in Kazakhstan with over 1 million subscribers and a market
share of over 31%. The Company is currently 100% owned by Vimpelcom of Russia
through Limnotex, a Cypriot company, which in turn is owned by VimpelCom
Finance B.V., a Dutch company, which is wholly owned by VimpelCom.
Vimpelcom, a Russian open joint stock company, that is listed on the New York
Stock Exchange (symbol: VIP), is the second largest GSM operator in Russia
with 28.3 million subscribers as of end of January 2005.
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EBRD finance:
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The Bank’s proposed syndicated financing will consist of A-tranche of USD 50
million five-year senior loan and B-tranche of USD 50 million three-year loan.
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Total project cost:
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The total project cost is estimated at USD 230 million over the next two years
of which the Bank will provide USD 100 million. The remaining estimated USD
130 million will be comprised of ECA backed vendor financing and internally
generated cash.
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Environmental impact:
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The project was rated C/0 with a low risk rating.
The project is unlikely to involve significant environmental issues.
Environmental due diligence has confirmed that the Company is compliant with
relevant Environmental, Health and Safety standard and requirements. The
Company is required to continue to comply with national and EU EHS standards
and requirements as well as submit an annual environmental, health and safety
report.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Kirill Podlipchuk, Director of Treasury
KaR-Tel LLP
28g,
Timiryazeva St.,
480090, Almaty, Kazakhstan
E-mail: kirill.podlipchuk@kar-tel.kz
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EBRD contact:
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Abduaziz Muminov, Operation Leader: muminova@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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