Swedish Export Agency Backs $1 Billion of Ericsson Sales to Russia

­Russia's Mobile TeleSystems (MTS) has secured a credit facility in the amount of up to just over US$1 billion backed by Sweden's Export Credit Agency to support purchases of network infrastructure equipment from Ericsson.

The facility will have two tranches; the first tranche will be in the amount of up to US$429 million with a maturity in June 2019; the second tranche of up to $646 with a maturity in September 2020.

The amounts to be drawn by the Company will be linked to the equipment purchases over the course of the next couple of years.

Mikhail Shamolin, President and CEO of MTS, commented, "The terms and size of the loan that we were able to secure provide us with the necessary flexibility in our CAPEX plans going forward as we build out our networks to provide quality services to our subscribers. Our goal is to capture growth in both voice and data markets by executing on our 3i Strategy, and we look to companies such as Ericsson to provide us with the necessary tools to maximize the benefits we derive from our networks as we launch innovative new services."

Posted to the site on 22nd November 2009