Sistema Shyam TeleServices that nationally operates its telecom services under the MTS brand with over 13 million wireless customers announced that it raised a loan of $200 million.
As part of the process, $100 million was raised from ICICI Bank and remaining $100 million was raised from Barclays Bank. This loan has been proportionally secured by Russia’s leading bank, Gazprombank through a standby letter of credit and bank guarantee.
This is a significant development for the telecom industry as several financial institutions are cagey about offering funds in the wake of ongoing 2G scam investigations. Lack of funds from banks and other financial institutions has prompted telecom operators to go slow with their expansion plans in the Indian telecom market.
Given the testing times being faced for financing of the telecom industry in India, raising of USD 200 Mln loan by SSTL is a significant achievement. The money raised is a reaffirmation of the confidence reposed by leading banks in our business strategy. We plan to utilize the raised money to further scale up our telecom operations in the country,” said Sergey Savchenko, chief financial officer of Sistema Shyam Teleservices.
The entire amount of $200 million has now been received by SSTL in a single tranche. The 3 year loan is payable in 2014.
Sistema Shyam Teleservices posted 18 percent increase in revenue at INR 2,782 million for the second quarter ended June 30, 2011.
Quarterly revenues grew faster than wireless (Voice & Data) subscriber base, which was up by 17 percent to 11.7 million.
Non-voice revenues from both data and mobile VAS for the quarter up by 36 percent Q-o-Q to INR 796.9 million, which now contributes 29 percent of total revenue and the contribution has increased by 3.8 p.p for the quarter.
Contribution of non-voice revenue is significant for MTS. This is a significant indication for strong revenue stream in coming months as there can be pressure on voice business. Major Indian mobile operators’ non-voice revenue (mobile VAS) is around 10-15 percent.
By Telecomlead.com Team