Mobile operator Tele2 Russia is set to receive a Rbs16bn (US$236m) loan under a new government-led project-financing scheme to launch a 3G and 4G network in Moscow.
The project is one of three selected by the interdepartmental commission in charge of…
Mobile operator Tele2 Russia is set to receive a Rbs16bn (US$236m) loan under a new government-led project-financing scheme to launch a 3G and 4G network in Moscow.
The project is one of three selected by the interdepartmental commission in charge of the scheme, the Ministry of Economic Development said in a statement.
PSB, Gazprombank, Bank of Moscow, Otkritie FC Bank, International Investment Bank and Eurasian Development Bank are the six banks participating in the scheme, which will fund projects totalling Rbs37.44bn (US$553m), the ministry said.
Spokespeople for Tele2 Russia and major shareholder VTB said the telco will also use its own funds and other borrowings to fund the total cost of the project, which they said will boost competition in a key Russian region.
Tele2 Russia, which aims to offer high-quality services at low prices, intends to launch the network in the second half of the year.
Local financial group VTB had also applied to the commission for funding to roll out a network outside of Moscow on behalf of Tele2 but this was rejected, a local news agency report cited a source familiar with the matter as saying.
The scheme, approved by the government last October, is for projects costing up to Rbs20bn (US$295m), of which a maximum 80% may be financed with debt.
Tele2 Russia and state-owned telco Rostelecom merged their mobile assets last year to create a new federal operator: T2 RTK Holding, which operates under the Tele2 Russia brand. The new player is the country’s fourth-largest mobile operator after MTS, MegaFon and VimpelCom.
