EBRD's Committee OKs $250 Mln 8-year Loan to Russia's MTS

MOSCOW, April 20 (Prime-Tass) -- A credit committee of the European Bank for Reconstruction and Development (EBRD) has approved a U.S. $250 million 8-year loan to be provided to Russia?s largest mobile operator Mobile TeleSystems (MTS), the bank said Thursday.

The bank's board of directors is expected to consider the loan on May 3.

MTS plans to spend the borrowed funds on further expansion in Russian regions and in countries of the Commonwealth of the Independent States, on financial restructuring and technological upgrades at its subsidiaries, including at ones recently acquired, as well as on supporting its competitive positions on the market, the bank said.

In late 2004, the EBRD provided a $150 million 7-year loan to MTS at an interest rate of 3.1% over Libor.

MTS has recently been in talks on attracting a $1.3 billion syndicated loan in two tranches for three and five years.

The net profit of MTS amounted to $1.126 billion in 2005, while its revenue stood at $5.011 billion, as calculated under U.S. GAAP. MTS is controlled by major Russian holding AFK Sistema, while about 47% of MTS' outstanding shares are in the free float.

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Posted to the site on 20th April 2006