Press Releases

Budapest, June 1, 2004 17:00

Matáv signed of a loan agreement with Deutsche Telekom Group for a Hungarian forint-denominated loan. The loan will be used to partially finance Matáv's recently announced dividend payment.

The Deutsche Telekom Group loan is in the amount of HUF 60 billion from June 2, 2004, and consists of two tranches of HUF 20 billion and HUF 40 billion. The two tranches will expire in 2008 and 2012, respectively. The facility will be subject to a variable interest rate with a margin of 55 basis points over the 3-month BUBOR for the HUF 20 billion tranche and of 81 basis points over the 3-month BUBOR for the HUF 40 billion tranche.

By taking out this medium- and long term financing, Matáv will lengthen the average maturity of its debt portfolio. The arrangement also keeps Matáv's capital structure in line with its stated objectives.

Matáv currently holds a BBB+ credit rating from Standard&Poor's and Baa1 from Moody's.