Project description
and objectives:
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Mobile TeleSystems OJSC (the Borrower or Company), one of the leading mobile
operators in the Russian Federation, is contemplating long-term financing from
the EBRD in order to finance:
(i) capital expenditure
(ii) local works
(iii) acquisitions in the regions of the Russian Federation.
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Transition impact:
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Through this transaction, the Bank will be supporting the geographical
expansion of MTS into the underserved regions of the Russian Federation and
supporting competition in these areas. The proposed project will promote
competition which in turn will lead to introduction of new services and more
importantly, through the reduction of prices, it will bring the mobile
telephony within the reach of a wider segment of the population in the
regions, thus promoting commercial activity in these economically less
developed areas.
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The client:
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Mobile TeleSystems OJSC (MTS or the Company) is the largest mobile phone
operator in Russia and the CIS. It provides services to over 27.8 million
subscribers in Russia, Ukraine and Uzbekistan. The Company is quoted on the
NYSE and is rated BB- (stable) by S&P and Ва3 (stable) by Moody’s.
Principal shareholders are Sistema (50.4%), and T-Mobile (25.1%). The free
float is at 22.5%.
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EBRD finance:
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The Bank will provide a US$ 150 million loan with a maturity of up to seven
years.
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Total project cost:
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MTS expects its capex spending in 2005 to exceed US$ 1.4 billion.
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Environmental impact:
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The project was screened C1.
There are unlikely to be significant environmental issues associated with this
project. Environmental due diligence is currently underway initially using
the Bank’s Environmental Questionnaire for Telecommunication Projects.
Environmental issues are likely to be associated with construction and
installation works for transmissions, towers and other equipments,
right-of-way, general health and safety issues and new acquisition. The
Company will be required to ensure that the project will comply with national
and EU environmental, health and safety standards and regulations as well as
to submit annual reports on environment, health and safety.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Andrey Braginski, Director of Public and Investor Relations:
Telephone: +7 (095) 911-65-53
Fax: +7 (095) 911-65-88
E-mail: ir@mts.ru
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EBRD contact:
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Abduaziz Muminov, Operation Leader: muminova@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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