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Hungary's TV2 station secures EBRD financing
A US$ 28 million (ECU 25 million) tailor-made financing package, arranged by the European Bank for Reconstruction and Development (EBRD) for one of Hungary's new terrestrial commercial television stations, should help advance the privatisation of Hungary's electronic media sector. The borrower, MTM-SBS Televízió Rt., manages TV2, one of the two new nationwide private stations in Hungary and was formed as a joint venture between Scandinavian Broadcasting System S.A., MTM Kommunikáció Rt. and Germany's Tele-München Gruppe.
"Commercial television channels are critical elements in advancing an open market economy," said Peter Reiniger, Director of the EBRD's Telecom team. "Financing commercial television in Hungary is an important step for the EBRD. It is the first transaction of this kind for the Bank and the first time we have syndicated a portion of our financing exclusively to Hungarian banks. We are confident that, based on the success of TV2, we will be able to continue financing private media ventures throughout the region."
The financing package comprises a US$ 28 million limited-recourse long-term loan, of which the EBRD is providing half and syndicating US$ 14 million with two Hungarian commercial banks, Országos Takarékpénztár és Kereskedelmi Bank Rt. and Kereskedelmi és Hitelbank Rt.
"Following one of Europe's most successful and fastest TV station launches, TV2 started broadcasting on 4 October 1997, covering 98 per cent of the Hungarian population," said Dezsô Pintér, Chairman of TV2. "We aim to create a high quality family entertainment channel with a strong European and Hungarian orientation."
Harry Evans Sloan, Chairman and Chief Executive Officer of SBS, said: "Since our launch we have been able to reach a strong cross-section of viewers across the country, giving our customers a premiere package of programming, including local news, original Hungarian productions and top movies. Until recently the only television channels in Hungary were state owned. Now there is greater choice."
Scandinavian Broadcasting System S.A., the main sponsor, is a NASDAQ-listed experienced commercial television and radio operator covering a multi-cultural market. Tele-München Gruppe is the second-largest electronic media company in Germany. The local sponsor is MTM Kommunikáció Rt., the largest privately owned audio-visual group in Hungary and a leading producer of Hungarian language versions of several international game shows.
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