The annual interest rate is LIBOR plus 2.5 percent. The term is three years.
The authorised organisers of the credit are - ABN AMRO Bank, HSBC Bank, ING Bank, Raiffeisen Zentralbank Oesterreicn AG, Bank Australia, Creditanstalt AG, Commerzbank Akteingesellschaft, Barclays Bank.
MTS instructed organising a syndicated loan in July 2004 and by now the syndicate unites 24 international lending institutions. In late July MTS got 200 million dollars out of the total loan and plans to get the remaining 400 million dollars at least in December.
The communique says that initially the company planned to attract 500 million dollars but, "owing to the 20-percent excess of demand over supply, the volume has been increased to 600 million dollars".
The loan will go to refinance part of the company's present debt and on corporative wants.
"The loan provides an excellent opportunity for attracting the present financial resources on very lucrative terms", the press release cites Tatiana Yevtushenkova, MTS vice-director for investments and corporative development, as saying.
OAO Mobile TeleSystems is the largest cellular operator in Russia and countries of the Commonwealth of Independent States, servicing over 25.5 million active subscribers. The MTS license portfolio includes the majority of regions in Russia, Ukraine, Belarus and Uzbekistan with the population residing on the license territory reaching 225.8 million.