Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or "the Company" – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that it has amended terms of its credit agreements with Sberbank for two non-revolving lines of credit in the amount of RUB 80 billion. According to the new terms, the tenor of the credit agreements has been increased from December 2017 until March 2020, while the annual interest rate on both lines has been lowered from 8.50% to 8.45%.
The agreements with Sberbank on the two non-revolving lines of credit amounting to RUB 60 billion and RUB 40 billion were originally signed in December 2010. The credit facility in the amount of RUB 60 billion was utilized for refinancing of the outstanding loans from Sberbank. The credit line for RUB 40 billion was used for financing the roll-out of MTS’s 3G networks in 2011. In 2011, MTS decreased the interest rate on both lines from 8.95% to 8.50% and increased the tenor until December 2017. In July 2013, MTS repaid RUB 20 billion of the RUB 40 billion credit facility.
Alexey Kornya, MTS Vice President and Chief Financial Officer, commented, “MTS continues to deliver on the strategy of optimizing its debt portfolio. Our success in amending the terms of financing to more favorable ones reflects on the stability of MTS’s financial standing and the strength of our relationship with Sberbank, which has continuously demonstrated its long-term support of MTS.”
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Corporate Finance & Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/