Sberbank of Russia and PJSC Ukrtelecom (Kyiv) have signed a loan agreement to provide a long-term loan worth $250 million, according to a press release of Sberbank of Russia.
The credit line consists of two tranches extended for three and five years respectively.
The credit funds will be used to refinance Ukrtelecom’s existing loans, fund capital investment and replenish working capital.
In late August Ukrtelecom repaid another tranche of a $500 million credit issued by Credit Suisse First Boston (CSFB) and Deutsche Bank (DB) in 2005.
The company’s total liabilities as of the end of 2010 amounted to Hr 3.74 billion, which is 20% down on 2009.
The company’s debt to banks in this period fell by 28.8%, to Hr 2.1 billion, while that on bonds rose by 62.6%, to Hr 714.3 million.
