The loan "will enable the holding's subsidiary companies to use VTB's broad possibilities in financing current requirements and investment, and also export-import operations, including the attracting of foreign funding and the use of the whole range of instruments used in international banking practice," the bank said in a news release.
VTB said the new credit conditions would enable Svyazinvest to implement its two-year financial strategy aimed at lowering the debt burden of its subsidiaries.
Svyazinvest combines seven large regional operators, including Uralsvyazinform [RTS: URSI], VolgaTelecom [RTS: NNSI] and Sibirtelecom [RTS: ENCO].
The holding also controls 51% in Rostelecom [RTS: RTKM], Russia's largest long-distance telecom services provider, and has a minority interest (28%) in Moscow City Telephone Network [RTS: MGTS].
VTB is Russia's second largest bank by assets. The government holds a 99.9% stake.
