Tele2 Russia

Location:

Russia

Project number:

42737

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

B

Target board date:

14 Jun 2011

Status:

Completed

PSD disclosed:

07 Jul 2011

Translated version of this PSD: Russian

Project Description

The EBRD is supporting the first non-bank foreign corporate bond issue on Russia’s domestic market since the onset of the credit crisis with its participation in a 13 billion rouble offering by OJSC Tele2 Saint-Petersburg, part of Russia’s fourth largest mobile operator, (“Tele2 Russia”). Tele2 Russia has the strategy of offering the best value mobile services in the regions where it is present, giving a greater percentage of the population a chance to access affordable telephony.

Transition Impact

The project will support competition in Russia's regions where mobile penetration rates are significantly lower than in Moscow and St Petersburg and where existing competition provides services only at relatively high prices. The project should also help Tele2 Russia to roll-out the 4G network and provide competitive high-speed data access packages to both SME and residential customers. Furthermore, the project is the first bond issue on the local bond market by a foreign non-bank corporate since the onset of the credit crisis and thus it may have a positive demonstration effect for other foreign non-bank corporates operating in Russia that so far have not accessed the local bond market.

The Client

Tele2 Russia is the most recent entrant on the Russian mobile market and its only foreign operator. It holds GSM licences in 43 regions of Russia covering 43% of the population. Tele2 Russia is ultimately controlled by Sweden’s Tele2 AB telecoms group, listed on OMX NASDAQ.

EBRD Finance

EBRD is participating in a 13 billion rouble bond offering by OJSC Tele2 Saint-Petersburg, being the first tranche of Tele2 Russia’s recently established 30 billion rouble bond programme.

Project Cost

Rouble 13 billion.

Environmental Impact

The project was categorized “B” in accordance with the EBRD 2008 Environmental and Social Policy and Performance Requirements.

The project is unlikely to be associated with significant environmental and social impacts. The company will complete the project in compliance with the guidance set out in the EBRD`s Performance Requirements (PRs) and submit an annual environmental and social report to the Bank.

Technical Cooperation

None.

Company Contact

Lars Torstensson - lars.torstensson@tele2.com

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.