Sberbank of Russia and Rostelecom signed loan agreements for 3 and 5 years for the total amount of 60 billion rubles

Jun 20, 2012

June 20, 2012, Moscow –  Sberbank of Russia and Rostelecom signed Loan agreements for 3 and 5 years for 60 billion loan to the company in total. Funds received by Rostelecom on these Agreements will be used to fund its day-to-day operations, investment program and refinancing of current liabilities. 

Agreements signed by the Parties are concluded in accordance with results of open tender held by Rostelecom. Sberbank was announced as the winner with best bids by price.

“We are positive about beginning of the next new stage in cooperation between Sberbank of Russia and one of the largest telecommunication companies in Russia – OJSC Rostelecom; and we are going to increase scope of our cooperation in all spheres within our strategic partnership,” – stated Andrey Grenkov, Head of Clients’ Managers Division of Sberbank of Russia.

“We are contented with results of the tender and feel optimistic about further development of our partner relations with Sberbank, which holds leading positions on Russian financial market and offers best conditions for funding. Rostelecom plans to use the borrowed funds to refinance current debts among other – by this means the Company may “extend” its debt and provide more balanced structure of its debt portfolio,” – stressed Iliya Ponomarev, Executive Director – Director of Finances of OJSC Rostelecom.

Decision to raise additional debt financing up to 60 billion rubles in 2012 was made by the Board of Directors of OJSC Rostelecom on 13.06.2012.

# # #

Sberbank of Russia
Alexander Baziyan
Public Relations  
Tel. +7(495) 957 5721
media@sberbank.ru

Sberbank is the largest bank of Russia that holds about 27% of the Russian banking assets and employs nearly 240,000 people. The Central Bank of Russian Federation is the founder and major shareholder of Sberbank, owning 57.6% of its issued outstanding shares. Other shares are held by more than 245,000 individual and institutional investors. The Bank has one of the largest networks in Russia: 17 territorial banks, about 19,000 branches as well as subsidiaries in Kazakhstan, Ukraine and Belarus, a branch in India, representative offices in Germany and China. With the acquisition of Volksbank International in 2012 Sberbank gained presence in nine Central and Eastern European countries.

The bank holds the general banking license No.1481 issued by the Bank of Russia.
The official website is www.sberbank.ru

OJSC Rostelecom (www.rostelecom.ru) – the national telecommunication company of Russia.
OJSC CentreTelecom, OJSC North-West Telecom, OJSC VolgaTelecom, OJSC Southern Telecommunications Company, OJSC Uralsvyazinform, OJSC SibirTelecom, OJSC Dalsvyaz and OJSC Dagsvyazinform joined the company in spring 2011.

As a result the consolidated company has the largest in Russia backbone network with total length about 500 thousand kilometers, and last mile connections to approximately 43 million households in Russia.

The consolidated company also holds public licenses to provide a wide range of telecommunications services in all regions of the Russian Federation.

Brand of the consolidated company – “Rostelecom” – is one of the strongest national brands included into Top-10 brands trusted by Russian citizen (by research holding ROMIR, www.romir.ru).

OJSC is majority owned by government, which controls 53.2% of ordinary shares of the company through OJSC Svyazinvest, Rosimuschestvo and Vnesheconombank.

Free floating ordinary shares make less than 40 % of the total number of outstanding ordinary shares, and number of free floating preferred shares – over 70 % of the total number of outstanding preferred shares.

By end of 2011 Rostelecom has more than 28,5 million fixed-line voice subscribers, 12.5 million mobile voice subscribers, 8.2 million of fixed-line broadband subscribers and 5.9 million pay-TV subscribers. Consolidated revenues of the Group in 2011 amounted to 296.0 billion rubles, OIBDA reached 117.7 billion rubles (39.8% of revenues), net income grew by 46.1 billion rubles.

Stocks of OJSC Rostelecom is traded at the largest Russian stock exchange MICEX-RTS (RTKM and RTKMP), and on over-the-counter electronic trade system OTCQX (ticker:ROSYY) in the USA.

The Company is assigned a “BBB-“ international credit rating by Fitch Ratings agency with a “Stable” forecast, and “BB+” international credit rating by Standard&Poor’s на уровне “BB+” with a “Stable” forecast.