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EBRD and ABN AMRO launch US$ 180 million syndicate for Polish Netia
The European Bank for Reconstruction and Development (EBRD) and ABN AMRO Bank N.V. (acting as Joint Arrangers) last week launched the syndication of the US$ 180 million (ECU 140 million) project finance facility for the Polish joint-venture company, Netia. The facility will finance the construction and operation of an initial 350,000 direct telecommunication lines to be installed in 10 licensed regions throughout Poland.
The EBRD is lender of record for the facility, which is structured on an A/B basis. It consists of the following:
a 10-year term loan of US$ 75 million (ECU 58 million) provided by the EBRD (A tranche),
a 10-year term loan of US$ 90 million (ECU 70 million) which is being syndicated (B tranche),
a parallel US$ 15 million (ECU 11.7 million) loan provided by the Nordic Investment Bank on terms and conditions similar to the EBRD's A loan.
Netia was established in 1995 as a private telecom operator by the Polish R.P. Telekom S.A., and Telia A.B., the Swedish national telecom operator. The EBRD's Board of Directors has also approved a US$ 15 million equity investment in Netia.
The project, which has a total estimated cost of US$ 383 million, should improve access to, and quality of, fixed-line telephony services in Poland.
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