MOBIFON CORPORATE LOAN FACILITY

Location:

Romania

Project number:

27720

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

B

Target board date:

23 Jul 2002

Status:

Completed

PSD disclosed:

30 Jul 2002

Project Description

A 6-year senior syndicated loan facility in favour of MobiFon S.A., the largest GSM operator in Romania.
The transaction allowed MobiFon to consolidate its existing financing and raise additional loan funds on a non-recourse basis from the syndicated debt market. The proceeds of the loan will be used to refinance all existing indebtedness of the company and provide funds for further development in its mobile network in Romania.

Transition Impact

The transition impact of the project will derive from the ongoing development of competition in the Romanian market, and it will provide a model for international lending in Romania.

The Client

MobiFon S.A. (MobiFon), the market leader in mobile telecommunication services in Romania. MobiFon has operated in Romania since 1996 and is an affiliate of Telesystem International Wireless Inc, a publicly listed Canadian telecommunications company based in Montreal, Quebec, and of Vodafone Group plc.

EBRD Finance

The EBRD acted as the Mandated Lead Arranger of a US$ 300 million 6-year senior loan financing package that consists of an EBRD Loan of US$ 230 million (including the EBRD A-Loan of US$ 110 million), a parallel loan from Export Development Canada of US$ 35 million and a parallel loan from Nordic Investment Bank of US$ 35 million. ABN AMRO Bank NV and Bank Austria Creditanstalt acted as Joint Mandated Arrangers and Underwriters of the EBRD B-Loan.

Project Cost

US$ 300 million (EUR 300 million)

Environmental Impact

The project was screened B/0, requiring an environmental analysis of the proposed development. The analysis examined the environmental issues associated with construction and operations, public participation, nature protection, use and disposal of hazardous materials and obsolete equipment. There are unlikely to be any significant environmental issues associated with the project. MobiFon has all necessary permits for their current operation in place. All other permits required for the expansion of their operation will be obtained as the project progresses. The analysis also confirmed that construction plans, including siting and disposal of potentially hazardous materials, worker health and safety, will be undertaken in accordance with relevant EU, national and local legal requirements.

Technical Cooperation

None.

Company Contact

 

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