"Hungary's Magyar Telekom has signed an agreement with the European Investment Bank (EIB) for a HUF 50.6 billion long-term loan. The funds will be used by the group to finance mobile broadband projects, among other investments.Magyar Telekom has been granted a loan in the amount of HUF 50.6 billion by EIB through DT International Finance B.V., a Deutsche Telekom subsidiary managing group financing as a financial intermediary. The loan matures in January 2015 and bears a fixed interest rate.
The loan will be used to upgrade Magyar Telekom's mobile communication network in Hungary in order to improve broadband service quality and accessibility, especially in rural areas. As part of the projects financed through the loan, the company is planning to expand the penetration and capacity of its 3G mobile network. Offering improved access to an advanced high-speed mobile broadband network is seen as a major contributor to success in achieving strategic growth plans at Magyar Telekom.
Thilo Kusch, Magyar Telekom's CFO commented: “We have arrived at another important milestone in the long-standing relationship with the EIB. Today we have signed an agreement with conditions better than those Magyar Telekom could reach for such a loan amount on the Hungarian market. By taking out a fixed interest rate loan, we continue to balance the variable and fixed rate elements of our loan portfolio. At the same time, as a result of this loan, we will increase the average maturity of our loan portfolio."
Source: Portfolio Online Financial Journal
17.06.2008