Cosmote, the third largest operator on the local market in Romania, contracted a loan from EBRD to develop its network LTE 4G in our country. The EBRD is the European Bank for Reconstruction and Development, and the initiative of those from Cosmote is worthy of praise, especially since it has the role of developing a network that the company's clients will use more and more, considering that most of the new smartphones and tablets are compatible with the 4G LTE standard. More details can be found in the press release published today by Cosmote Romania.
EBRD supports COSMOTE Romania in the 4G race
through a loan of 225 million euros, for a more efficient telecom infrastructure
The European Bank for Reconstruction and Development (EBRD) supports the local market of mobile broadband services, through the largest syndicated loan in the country this year, with the aim of offering users and the business environment an expanded number of services with added value.
COSMOTE Romania - subsidiary of Hellenic Telecommunications Organizations (OTE), the leading Greek mobile operator in Southeast Europe - will receive a financing of 225 million euros from the EBRD: 75 million euros from the EBRD's own sources and 150 million euros syndicated loan from a group of seven commercial banks.
This loan will allow COSMOTE Romania to finance the renewal of licenses and to fulfill its payment obligations for the spectrum allocated to 4G mobile services, as well as to cover part of the investments necessary to develop the network.
The demand of Romanian consumers for mobile broadband services is increasing, and the fierce competition for the provision of 4G services is intensifying. Companies face significant expenses, against the backdrop of investments in the expansion of networks and the portfolio of services.
The financing provided by the EBRD will allow COSMOTE Romania to multiply its competitive advantages. Thus, the company will provide high-quality broadband communication services, as well as new and innovative applications and services.
"For the EBRD, building an IT&C infrastructure of trust is essential for fostering innovation and modern knowledge-based industries", said Mr. James Hyslop, Director of EBRD Romania. "In all the countries where the EBRD took placezinvestment projects, telecom is an extremely dynamic sector, based on knowledgewipe. We are pleased that with this loan we are contributing to COSMOTE Romania's efforts to grow the telecom market in Romania, for the benefit of users and the business environment. We are equally honored by the fact that this transaction is a project implemented in partnership with the OTE Group, also involving an extensive group of banks with traditionHe added.
Mandated main arrangers (Mandated Lead Arrangers) for this syndicated loan are ING Bank and Société Générale, Main Arrangers (Lead Arrangers) are Erste Group Bank AG and Eurobank Private Bank Luxembourg SA, Citibank, NBG Bank Malta Limited and Raiffeisen Bank International AG are Arrangers (arrange).
Michael Tsamaz, President and CEO of OTE Group, said: “This agreement representsă a vote of trust for Romania, for the future and the opportunities that the country offers. It is also a proof of the confidence that the EBRD has in the OTE Group, for its financial stability and the successful transformation processes carried out. Despite macroeconomic conditions, we remain focused on creating value for the local public and investing in the future by building tomorrow's telecom infrastructure".
Nikolai Beckers, COSMOTE Romania CEO, stated: "The telecom industry is intensely influentialinvestments, and technological changes happen quickly. COSMOTE Romania, as a complete provider of communication services, launched 4G services in April this year, once again confirming its customer-oriented strategy. Through this loan from the EBRD, we strengthen our resources so that we can follow an optimal investment plan for the development of broadband services".
Since the launch of its operations, the EBRD has invested approximately 6,2 billion euros in over 330 projects in Romania, mobilizing over 12 billion euros for them, from external financing sources.
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