Russian state-controlled Rostelecom has secured a Rbs10bn (US$283.67m) credit line with Sberbank.
The five-year facility has an interest rate of 8.69% and will be used if and when necessary, a spokesperson for the Moscow-based telco said, adding that no…
Russian state-controlled Rostelecom has secured a Rbs10bn (US$283.67m) credit line with Sberbank.
The five-year facility has an interest rate of 8.69% and will be used if and when necessary, a spokesperson for the Moscow-based telco said, adding that no “time-consuming tender procedures” are required.
Earlier this month, Rostelecom inked a Rbs20bn (US$574.38m) five-year credit line with Gazprombank.
Whenever Rostelecom wants to draw upon these funds, the bank provides it with a specified interest rate – capped at 15% – and the telco decides whether or not to proceed.
Rostelecom reported net debt of Rbs208.3bn (US$5.97bn) as of 30 September 2013 and a net debt/OIBDA ratio of 1.9x. Nearly 99% of the company’s total debt was ruble denominated.
Rostelecom is working to create a mobile joint venture with rival Tele2 Russia. This deal is expected to close by Q2 2014.
Meanwhile, the government is looking to privatise Rostelecom and has hired Sberbank to advise it on the transaction.
