Rostelecom to receive up to $600mn from China Development Bank
Rostelecom PJSC ("the Company") (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, announces that it has signed an agreement with China Development Bank and Huawei for Rostelecom to receive long-term financing of up to $600mn. This funding will be used to realise telecommunication projects in cooperation with Huawei, as well as to refinance the Company's existing liabilities.
Rostelecom and Huawei have enjoyed a long-standing, fruitful partnership. In 2014, the two companies signed a strategic agreement, and a number of major projects have already been completed in Russia, including the construction of the largest fibre optic data network in Europe. Rostelecom and Huawei are also currently laying the subsea Kamchatka-Sakhalin-Magadan fibre optic line.
Ilya Ponomarev, Director of the Finance Department, commented: "This is the first credit line Rostelecom will receive from a Chinese bank to finance its joint projects with Huawei. Raising funds from the Asian markets helps us to broaden our creditor base and diversify our debt portfolio, making it more balanced and sustained."