Additional agreement with Halyk Bank of Kazakhstan
Additional agreement with Halyk Bank of Kazakhstan JSC
Almaty, 30 April 2019 - Kcell Joint Stock Company ("Kcell" or the "Company") (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan, announces that on 24 April 2019 its Board of Directors approved an additional agreement to the current Term Credit Line Agreement dated 24 September 2013 between Kcell JSC and Halyk Bank of Kazakhstan JSC.
The agreement reduces the interest rate and extends the availability of the credit line for one year to 2 July 2020. Under the agreement, the following financial covenants have also been established:
o Maintaining net debt / EBITDA ratio at a level not exceeding 3.0
o Maintaining capital / total assets ratio of at least 0.2.
o Interest coverage ratio in respect of any relevant period to be not less than 2:1
This transaction is qualified as a major transaction in accordance with the legislation of the Republic of Kazakhstan, as the potential liability to Halyk Bank of Kazakhstan JSC may exceed 25 percent of the amount of the Company's total assets.
Enquiries:
Kcell |
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Investor Relations |
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Irina Shol | Tel: +7 727 2582755 ext. 1002 |
Media Natalya Eskova |
Теl: +7 727 2582755 ext. 1902 |
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International Media |
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Instinctif Partners | Tel: +44 207 457 2020 |
Kay Larsen, Galyna Kulachek
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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 50 million shares, which represent 25 percent of Kcell's share capital.
On 21 December 2018, Kazakhtelecom JSC acquired the 75 percent stake in Kcell held by Telia Company and Fintur Holdings B.V.
Kcell plans to continue investing in the deployment of its 3G/4G network to expand coverage and to introduce high quality services. Kcell aims to provide high quality services at competitive prices, expand its offering of products and services, while maintaining the high quality of its network and enhancing its brand value.
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