Leading Israeli mobile operator Cellcom has agreed two separate deferred loans worth NIS400m (US$103m), the company announced on Sunday. It has the option to cancel or prepay the loans, to be provided in 2016 and 2017.
The first loan, worth NIS200m,…
Leading Israeli mobile operator Cellcom has agreed two separate deferred loans worth NIS400m (US$103m), the company announced on Sunday. It has the option to cancel or prepay the loans, to be provided in 2016 and 2017.
The first loan, worth NIS200m, to be provided in June 2016, will bear an annual fixed interest of 4.6%. The principal will be repaid in four equal annual payments on 30 June of each year between 2018 and 2022.
The second loan, also worth NIS200m, to be provided in June 2017, will bear an annual fixed interest of 5.1%. The principal will be repaid on 30 June of each year between 2019 and 2022.
Cellcom declined to name the two lending banks.
Last month, rival Bezeq announced that it had secured a NIS600m credit line for 2016, which it would use to recycle debt. Another rival, Partner, agreed a NIS275m loan.
Cellcom had some 2.67m subscribers as of the end of 2014. It is currently seeking approval of a proposed network sharing deal with number five cellco Golan Telecom, following the Ministry of Communication’s recent go-ahead to a similar agreement between Partner Communication and HOT.
