Russian Towers has secured a 10-year Rbs2bn (US$52m) loan from the Eurasian Development Bank (EDB) to double the size of its portfolio.
The towerco said the proceeds will be used to finance the construction of 1,000 towers between the start of 2015 and…
Russian Towers has secured a 10-year Rbs2bn (US$52m) loan from the Eurasian Development Bank (EDB) to double the size of its portfolio.
The towerco said the proceeds will be used to finance the construction of 1,000 towers between the start of 2015 and the end of 2016 – which it will then lease out to multiple operators – giving it a total of 2,000 sites.
Dmitry Nelyubov, general director of Russian Towers, said: “In spite of a challenging economic environment overall in Russia, our sector, in which we are the market leader, is growing with pace.”
The EDB expects that the project will contribute to the improvement of competition and quality in the Russian market in mobile services.
“We view the EDB’s decision to fund our continued development as a strong endorsement of our business model and potential for further profitable growth,” Nelyubov added.
Russian Towers was founded in 2009 and has backing from UFG Asset Managеment, the European Bank for Reconstruction and Development, the Macquarie Renaissance Infrastructure Fund, ADM Capital, Sumitomo Corporation, and International Finance Corporation.
In July last year, the towerco was reportedly in talks with local telco VimpelCom to buy more than 5,000 towers for an estimated US$500m. A deal has yet to be announced.
