MegaFon has attracted China Development Bank $600 million

Moscow. December 4. MegaFon entered into two loan agreements with State-owned China development Bank (China Development Bank, CDB) totaling $600 million.

First loan – $300 million for a period of 8 years – the operator will direct on acquisition of equipment Huawei. The company will purchase Chinese equipment vendor for the construction of 4G networks and 3G and for modernization of existing infrastructure, told the financial Director of “MegaFon” Gevork Vermishyan.

A second mortgage is also $300 million is borrowed for 6 years and will be used to refinance old debt “the Megaphone”. Vermishyan did not specify what specific loans are planned to refinance funds from the CDB, adding that it’s short term obligations. He also did not say interest rates on new loans CDB.

“This is our first agreement with CDB, which is not only for the purchase of Huawei equipment, and for General corporate purposes,” he said.

Agreement on the potential financing from CDB $600 million, “the Megaphone” has signed in September of this year. Operator for 10 years, is credited in the CDB for the purchase of Chinese equipment. The first agreement worth $51 million was signed in 2005, in 2007, MegaFon has attracted CDB $85 million, in 2009 – $300 million in 2011 to $1.5 billion, in 2014 – $500 million Thus, the total amount of credit agreements of the parties exceeds $2.4 billion based on the current agreements, the Chinese state Bank has organized 10 of credit lines of MegaFon. Currently the company more than $1.1 billion on borrowings from CDB.

Commenting on the current interest rate on the loan for Huawei equipment, Vermishyan said that this time the conditions is almost identical to the terms of the previous agreements. According to statements of MegaFon, the company has previously attracted loans of the Chinese state Bank under LIBOR plus of 2.7% per annum and LIBOR plus 2.4% per annum.