Sistema Shyam Teleservices Ltd raises Rs 1280 cr loan from banks through NCDs
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The Indian arm of Russian conglomerate Sistema, that offers mobile services under the MTS brand has raised Rs 1280 crore loan from a consortium of banks through Non Convertible Debentures (NCD).
Deutsche Bank is the lead banker of the issue. This issue has been partially secured by guarantee of one of Russia's leading bank, Sberbank.
This is the second time in the last six months the company has raised money to fund its expansion plans. In September 2011, it has raised a Rs 920 crore loan from Barclays Bank and ICICI Bank. The telco has also said that it currently had several other facilities in pipe-line.
The entire amount of INR 1280 Crore has been received by SSTL. The 8 year Debt is payable by 2019, the company said in a statement.
"It was quite challenging to raise such significant funds with such long tenor under current uncertain regulatory environment in India, but business has to continue and grow. We are planning to utilize the proceeds to further scale up our telecom operations and repayment of maturing loan," Sergey Savchenko, chief financial Officer of Sistema Shyam Teleservices Ltd said.
The company also got about $600 million when the Russian government bought under 20% stake in it in December 2010.
Post this deal, Sistema's stake in the JV has declined to about 54%. There are no changes in the Shyam group's shareholding and it has about 24% in the JV. Other minority shareholders own the residual 2% in the telco.
Deutsche Bank is the lead banker of the issue. This issue has been partially secured by guarantee of one of Russia's leading bank, Sberbank.
This is the second time in the last six months the company has raised money to fund its expansion plans. In September 2011, it has raised a Rs 920 crore loan from Barclays Bank and ICICI Bank. The telco has also said that it currently had several other facilities in pipe-line.
The entire amount of INR 1280 Crore has been received by SSTL. The 8 year Debt is payable by 2019, the company said in a statement.
"It was quite challenging to raise such significant funds with such long tenor under current uncertain regulatory environment in India, but business has to continue and grow. We are planning to utilize the proceeds to further scale up our telecom operations and repayment of maturing loan," Sergey Savchenko, chief financial Officer of Sistema Shyam Teleservices Ltd said.
The company also got about $600 million when the Russian government bought under 20% stake in it in December 2010.
Post this deal, Sistema's stake in the JV has declined to about 54%. There are no changes in the Shyam group's shareholding and it has about 24% in the JV. Other minority shareholders own the residual 2% in the telco.
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