Russia’s Rostelecom has asked the local VTB bank for a Rbs15.6bn (US$308m) loan in conjunction with the government project financing scheme.
Under the scheme, launched earlier this year, local companies can apply for funding for projects worth up to…
Russia’s Rostelecom has asked the local VTB bank for a Rbs15.6bn (US$308m) loan in conjunction with the government project financing scheme.
Under the scheme, launched earlier this year, local companies can apply for funding for projects worth up to Rbs20bn (US$379.9m).
They can borrow a maximum 80% of the total cost. Banks within the central bank’s framework, such as VTB, can refinance loans at 9% per annum, while borrowers themselves pay a maximum interest rate of 11.5%.
A spokesperson for the state-controlled telco confirmed that proceeds from the VTB loan will be used for its ‘Digital Framework Russia’ network development project, expected to cost a total Rbs19.5bn (US$385.4m). The remainder will be funded with equity.
Rostelecom president Sergey Kalugin recently said the company is seeking about Rbs60bn (US$1.4bn) in project financing under the government scheme to construct data centres, modernise the IP/MPLS network and rollout fibre broadband.
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. Kalugin 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.
