MegaFon and CDB sign a Framework Cooperation Agreement for potential future financing in the amount of up to US$ 600 Mn
Sep 3, 2015
3th September. Beijing. Public Joint Stock Company “MegaFon” (“MegaFon”, or the “Company”) (LSE: MFON), a leading Russian telecommunications operator, announces that it has signed a Framework Cooperation Agreement with China Development Bank Corporation (“CDB”) for potential new financing of up to US$ 600 Mn.
The new CDB financing is intended to facilitate the development of the Company’s mobile network through the purchase of equipment and services from Huawei Technologies Co. Ltd (“Huawei”), one of the world’s leading providers of technology and services to the telecoms industry, as well as to refinance part of the existing indebtedness of MegaFon.
The signing was witnessed by the President of Russia Mr. Vladimir Putin and the President of the People’s Republic of China Mr. Xi Jinping during an official visit of Mr. Putin to Beijing.
The Framework Cooperation Agreement caps 10 years of cooperation between MegaFon and CDB and sets forth strategic goals for their future relationship.
Ivan Tavrin, Chief Executive Officer of MegaFon, commented: “We are very proud to have CDB as our long-standing financial partner. This new Framework Cooperation Agreement is very important for both MegaFon and CDB as it sets the strategic direction for business development between our organizations. During last 10 years this partnership has proved to be very effective and we are looking forward to explore new business opportunities with CDB.”
Gevork Vermishyan, Chief Financial Officer of MegaFon, said: “While credit supply from financial markets remains contracted I am happy that MegaFon firmly demonstrates a top-notch Russian corporate borrower profile. We believe that this new Framework Cooperation Agreement will allow us to underpin and even improve our superior network quality and at the same time effectively manage refinancing and currency risks with the financial backing of CDB.”
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