Press Releases

Budapest, March 21, 2005 09:00

Matáv has signed today a loan agreement with Deutsche Telekom on a medium term Hungarian forint-denominated loan. From this loan, Matáv will finance the acquisition of majority stake in Telekom Montenegro.

Matáv has been granted a loan by Deutsche Telekom in the amount of HUF 28 billion from March 22, 2005. The loan will be used for the acquisition of the 51.12% of Telekom Montenegro (Telekom Crne Gore AD) from the Government of Montenegro. The purchase of additional minority shares is expected to be financed from cash generated by Matáv.

The new facility will expire in October 2009 and bears a floating rate of interest with a 34 basis points margin over the 6-month BUBOR. Other conditions of the loan are similar to those stipulated in the previous agreements with Deutsche Telekom.

Matáv currently holds an A- credit rating from Standard&Poor's and Baa1 from Moody's.