Press Releases

Budapest, August 23, 2004 16:00

Matáv is borrowing loans totaling 64 billion HUF from Deutsche Telekom on August 23, 2004. Together with cash generated by itself, Matáv will use the loans to refinance the remaining 76.6 billion HUF of its loan of 126.6 billion HUF from Deutsche Telekom.

On August 14, 2003 Matáv raised a short-term loan of 126.6 billion HUF from Deutsche Telekom. In order to finance the remaining 76.6 billion HUF stake, on August 23, 2004 Matáv is borrowing a 20 billion HUF short-term (maturity: January 2005), a 14 billion HUF three-year (maturity: 2007) and a 30 billion HUF five-year (maturity: 2009) loan from Deutsche Telekom.

The maturity of the short-term loan is adjusted to Matáv's cash flow generating capability, while the medium- and longer term loans are borrowed in order to extend the average maturity term of the loan portfolio. The loans bear fixed interest: the short-term loan has an annual interest rate of 11.16%, the one maturing in 2007, 10.20% and the third maturing in 2009 bears 9.62% interest rate annually. The other conditions of borrowing are similar to those specified in earlier agreements with Deutsche Telekom.

At present, Matáv is rated BBB+ by Standard&Poor's and Baa1 by Moody's.