Borrowings

In thousands of Kazakhstani Tenge 31 December
2012
31 December
2011
Bank loans from:   -
- ATF Bank JSC
- Syndicated loans from Citibank Kazakhstan JSC and RBS Kazakhstan JSC
3,950,000
45,040,985
-
Total borrowings 48,990,985 -

The Group’s bank loans mature within one year and are denominated in Kazakhstani Tenge. The Group does not apply hedge accounting and has not entered into any hedging arrangements in respect of interest rate exposures.

The carrying amount of borrowings approximates their fair value.

Bank name Date of issue Maturity date Loan currency Effective interest rate Outstanding balance Total borrowings
Syndicated loan from
Citibank Kazakhstan JSC and RBS Kazakhstan JSC
26.09.2012 26.09.2013 KZT 4.60% 30,033,070 30,033,070
Syndicated loan from
Citibank Kazakhstan JSC and RBS Kazakhstan JSC
17.10.2012 26.09.2013 KZT 3.85% 15,007,915 15,007,915
ATFBank JSC 27.12.2012 27.01.2013 KZT 5.75% 2,000,000 2,000,000
ATFBank JSC 28.12.2012 28.03.2013 KZT 6.00% 1,200,000 1,200,000
ATFBank JSC 28.12.2012 28.01.2013 KZT 5.75% 750,000 750,000

On 26 September 2012, the Company signed a Term Loan Facility Agreement with the JSC Citibank Kazakhstan and JSC SB RBS Kazakhstan on provision of 30 billion Tenge to the Company on the terms of a fixed interest rate of 4.6% per annum, one-off transaction fee at 1% of loan amount and the maturity of twelve months, with an extension of up to an additional twelve months, subject to consent of the lenders.

On 17 October 2012, the Company signed a Term Loan Facility Agreement with JSC Citibank Kazakhstan and JSC SB RBS Kazakhstan in connection with a loan in the amount of 15 billion Tenge to the Company on the terms of a fixed interest rate of 3.85% per annum, one-off transaction fee at 1% of loan amount and the maturity date of 26 September 2013, with the extension of up to an additional twelve months, subject to consent of the lenders. The 15 billion Tenge facility is guaranteed by TeliaSonera AB. The Company is subject to the payment of an annual fee in the amount of up to 112.5 million Tenge per annum to TeliaSonera AB for its provision of the guarantee in respect of the KZT 15 billion facility.