Russian state-controlled Rostelecom has inked an Rbs20bn (US$574.38m) credit line with Gazprombank.
The bank will provide the financing at a maximum interest rate of 15%, irrespective of financial market conditions and official rates, a spokesperson for…
Russian state-controlled Rostelecom has inked an Rbs20bn (US$574.38m) credit line with Gazprombank.
The bank will provide the financing at a maximum interest rate of 15%, irrespective of financial market conditions and official rates, a spokesperson for the Moscow-based telco said.
Whenever Rostelecom wants to draw upon funds, Gazprombank provides it with a specified interest rate and the telco decides whether or not to proceed, the spokesperson explained.
Rostelecom reported net debt of Rbs208.3bn (US$5.97bn) as of 30 September 2013 and a net debt/OIBDA ratio of 1.9 times. Nearly 99% of the company’s total debt was rouble denominated.
Rostelecom is working to create a mobile joint venture with rival Tele2 Russia. This deal is expected to close by Q2 2014.
Meanwhile, the government is preparing to sell its shares in the telco and has hired Sberbank to advise it on the transaction.
