Investor Releases
Magyar Telekom granted EIB loan for mobile broadband projects
Budapest, June 16, 2008
Magyar Telekom (Reuters: NYSE: MTA.N, BÉT: MTEL.BU and Bloomberg: NYSE: MTA US, BÉT: MTELEKOM HB), the leading Hungarian telecommunications service provider, announces that it has signed an agreement with the European Investment Bank (EIB) for a long-term loan granted through Deutsche Telekom International Finance B.V. that will be used, among others, to finance its mobile broadband investment projects.
Magyar Telekom has been granted a loan in the amount of HUF 50.6 billion by EIB through DT International Finance B.V., a Deutsche Telekom subsidiary managing Group financing, as a financial intermediary. The loan matures in January 2015 and bears a fixed interest rate.
Thilo Kusch, Magyar Telekom’s CFO commented: “We have arrived at another important milestone in the long-standing relationship with the EIB. Today we have signed an agreement with conditions better than those Magyar Telekom could reach for such a loan amount on the Hungarian market. By taking out a fixed interest rate loan, we continue to balance the variable and fixed rate elements of our loan portfolio. At the same time, as a result of this loan, we will increase the average maturity of our loan portfolio.”
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