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Sunday, November 19, 2017

MTS changes Sberbank loan terms

Mobile TeleSystems, the leading telecommunications provider in Russia and the CIS, has amended terms of its credit agreements with Sberbank, the largest bank in Russian and Eastern Europe, for two non-revolving lines of credit worth $2.43 billion.

Under the new terms, the credit agreements have been extended from December 2017 until March 2020, while the annual interest rate on both lines has been lowered from 8.50 percent to 8.45 percent.

MTS originally signed agreements with Sberbank on two non-revolving lines of credit in December 2010 to be utilized for refinancing outstanding loans and for financing the roll-out of the company's 3G networks.

In 2011, the interest rate on both lines decreased from 8.95 percent to 8.50 percent and the terms extended until December 2017.

"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," Alexey Kornya, MTS' vice president and chief financial officer, said.