All agreed loans

Russia. Mobile Telesystems OJSC

Date of loan: 26 Jun 2009
Country: Russia
Customer: Mobile Telesystems OJSC
Amount in EUR: EUR 40 million
Maturity: 7 years
NACE sector / loan type: Post and telecommunications, A/B loan
Business area: Infrastructure, transportation and telecom

Project

The A/B loan has been provided for financing the expansion of the company's 2G and 3G mobile network in Russia, Ukraine, Armenia and Turkmenistan.

NIB's A Loan amounts to EUR 40 million and the B Loan to EUR 40 million. The term of the A Loan is to be 7 years and the B Loan 3 years. The financing is to be provided in cooperation with the European Bank for Reconstruction and Development and the European Investment Bank.

MTS is the largest mobile phone operator in Russia and the CIS. The company together with its subsidiaries services over 98 million subscribers in Russia, Ukraine, Armenia, Belarus, Turkmenistan and Uzbekistan (as of 31 May 2009).

NIB's lending to the Russian telecommunications operator provides added value to some NIB member-country suppliers, such as Ericsson and NSN, which are competing against major telecommunication vendors in the Russian market. Nordic suppliers provide MTS with radio subsystems, communication and transmission equipments.

Sustainability summary

The company's 2G and 3G mobile network extension and capacity increase of the existing telecommunications net in urban and rural areas will have insignificant environmental impacts.