MTS gets 413-million loan to expand network

PanARMENIAN.Net - Mobile TeleSystems OJSC (MTS), the largest mobile phone operator in Russia and the CIS, announces that it has signed agreements to receive three separate loans for the total amount of EUR 413 million from the European Bank for Reconstruction and Development (EBRD), the Nordic Investment Bank (NIB) and the European Investment Bank (EIB) to be used for the further development of 2G and 3G mobile networks in the Company's markets of operation.



The EBRD loan in the amount of EUR 218 million amends a previously unused commitment, concluded in December 2008, and will provide funding for the development of the Company's networks in Russia, Uzbekistan and Turkmenistan. The loan will have two tranches; the first tranche of EUR 115 million has a 7-year maturity, while the second tranche of EUR 103 million has a 3-year maturity.



The NIB loan in the amount of EUR 80 million will be used to finance the further expansion of the Company's 2G and 3G mobile networks in Russia, Ukraine, Armenia and Turkmenistan. The loan is in two tranches of EUR 40 million each with maturities of 7- and 3-years.



The EIB loan in the amount of EUR 115 million will support the rollout of 3G/UMTS-based mobile broadband services in the Russian Federation in terms of the purchase and installation of equipment and software licenses for UMTS-based 3G access and core network. EIB funds will allow MTS to increase its rollout of 3G networks to additional cities in Russia in 2009. The loan will have a 7-year maturity, pressreleasepoint.com reported.



MTS owns 80 percents of VivaCell-MTS shares. Number of subscribers reached 2.06 million as of April 2009.