VTB Bank has opened a five-year non-revolving credit line for one of Russia’s biggest telecom operators, TransTeleCom (TTK), with a limit of RUB 3 billion. The company plans to use the money to refinance its previous loans, due in 2015.
“TransTeleCom strongly holds a strong position on the relatively stable telecommunications market today, something we value in a borrower,” First Deputy President and Chairman of the VTB Bank Management Board Yuri Soloviev said. “We also have longstanding experience working with this company and definitely see it as a reliable client and partner.”
“Next year we plan to refinance part of our debt with the new credit line to be able to keep a comfortable debt-to-EBITDA ratio, and to allocate the necessary amounts to continue our ongoing investment projects,” said Vyacheslav Sotnik, first vice president for economics and finance at TTK. “This should also relieve our debt servicing burden, given the rapidly growing loan interest rates,” he added.
TransTeleCom (TTK) is one of the top five telecom operators in Russia, 99.99% owned by the rail monopoly Russian Railways. It is one of the main providers of mainline communications services for operators and major corporations, and one of the leading broadband Internet, television and telephone providers, serving end users in Russian regions. TTK serves over 1.7 million subscribers.
TTK operates and services one of the largest fiber-optic networks in Russia, with over 2.5 Tbps in capacity and extending more than 76,000 kilometres across the country. The transcontinental backbone of TTK, EurasiaHighway, is connected to communication networks in almost all neighboring countries, including China, Japan, Mongolia, North Korea, Finland, the Baltic states and the CIS, and it is the most efficient route between Europe and Asia.
In 2013, the company reported IFRS profit of RUB 100 million, RUB 27.4 billion in revenue and OIBDA of RUB 5.2 billion.