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Telekom to Borrow EUR 700mn

16. February 2007. | 16:02

Telekom Serbia has said it started the procedure to secure a EUR 700mn loan, with the Citigroup’s mediation.
The loan will be used to cover Telekom Serbia’s financial obligations related to the acquisition of 65 percent of Telekom Srpska’s capital and company’s general expenditure. The process to obtain the loan has started in London on February 9. Telekom Serbia’s loan marks the Citigroup’s first engagement in a banking arrangement in Serbia. The international financial conglomerate has said earlier that it would open its corporate and investment banking office in Serbia in the first trimester of this year. On January 21,Telekom Serbia signed the contract purchasing 65 percent of Telekom Srpska’s capital for EUR 646m, after outbidding its contender Telekom Austria, whose bid stood at EUR 476mn. Meantime, the Montenegrin media report Telekom Serbia, in consortium with a Dutch company, to be the only participant in the tender to acquire the license to operate the second and third generation mobile telephony in Montenegro. Vijesti daily reports the consortium has offered EUR 16mn for the license, almost threefold the amount the Telecommunications Agency set as the minimal sum, i.e EUR 6mn. The newspaper also says the company plans to invest further EUR 90mn and will be ready to start operations this summer.

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