Russia’s Rostelecom is seeking about Rbs60bn (US$1.4bn) in project financing.
Sergei Kalugin, president of the state-controlled telco, said the projects to be funded include constructing data centres, modernising the IP/MPLS network and the rollout…
Russia’s Rostelecom is seeking about Rbs60bn (US$1.4bn) in project financing.
Sergei Kalugin, president of the state-controlled telco, said the projects to be funded include constructing data centres, modernising the IP/MPLS network and the rollout of fibre broadband, a company spokesperson confirmed.
The Russian government and central bank launched a project financing scheme earlier this year for local companies struggling to access funds in the difficult economic environment. To be eligible, projects cannot exceed Rbs20bn (US$379.9m), of which a maximum 80% – Rbs16bn – may be financed with debt. Banks within the central bank’s framework can refinance loans at 9% per annum, while borrowers themselves pay a maximum interest rate of 11.5%.
Tele2 Russia, with which Rostelecom has a mobile joint venture, has reportedly already secured an Rbs16bn loan from VTB under the scheme to fund the rollout of a network in Moscow. Kaligin has been cited saying Telek2 Russia is likely to receive a second Rbs16bn loan under the scheme to finance the construction of a network in the regions.
Takeover plans
Meanwhile, Rostelecom’s board of directors has approved a buyout of regional fixed-line operator Bashinformsvyaz for about Rbs2.4bn (US$45.6m).
The Moscow-based telco, which has a 70.8% stake in the target, said in a statement that it plans to announce a voluntary share buyback from other shareholders. The price will be set by an independent appraiser and not surpass Rbs8.53 per ordinary share. The process could take several months to complete.
Rostelecom senior vice president Maria Florentyeva commented: “Consolidating 100% of Bashinformsvyaz will help us to speed up the operational integration and improve internal efficiencies… The whole process will allow Bashinformsvyaz to continue to develop within the Rostelecom group and will enable the group to fully realise potential synergies.”
Bashinformsvyaz has a fibre optic network in Bashkortostan stretching more than 21,000km, according to Rostelecom. It has more than 800,000 fixed-line subscribers, 490,000 broadband customers and 390,000 TV subscribers.
