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European Bank signs first private sector non-recourse loan in Russia
The European Bank for Reconstruction and Development (EBRD) has signed a loan agreement with EDN SOVINTEL, a telecommunications joint venture. This is the first non-recourse loan for a commercial project by an international financial institution in the Russian Federation.
"With the structure of this loan, the European Bank confirms its willingness to finance commercial enterprises in Russia without government or other guarantees", Ron Freeman, the vice-president in charge of Merchant Banking, said.
"This commitment to EDN SOVINTEL reinforces our belief in the strength and importance of this company to the economy in Russia", said Glenn Sacra, Co-Chairman of the joint venture's board.
The US $6.5 million loan to EDN SOVINTEL will finance the expansion of one of the first high-quality international telecommunications systems in Moscow.
EDN SOVINTEL is a joint venture between the Main Trunk Lines Control Centre (50%), a leading telecommunications enterprise of the Russian Ministry of Communications, and SOVINET (50%), a US partnership between GTE International Communication Services Corporation, an affiliate of GTE Spacenet Corporation, and San Francisco/ Moscow Teleport, Inc.
International Nederlanden Groep has agreed to acquire a participation in the European Bank loan to EDN SOVINTEL.
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