Today.Az » World news » Deutsche Bank to provide Uzbektelecom with a loan of €400 million
30 August 2023 [20:35] - Today.Az

The company is also entering into two deals to modernize its communications infrastructure for $222 million, Azernews reports, citing news agency.

Uzbektelecom is attracting a new foreign loan for a large amount, it follows from the data of the Unified Portal of Corporate Information.

The loan is provided by Deutsche Bank to increase the liquidity of the state-owned telecom operator and replenish its working capital. The corresponding decision was approved at the meeting of shareholders of the company, held on August 16.

The loan amount will be €400 million. The money is allocated for five years with a 2-year grace period, at 4.8% per annum plus Euribor for six months (interbank rate in euros, now 3.944%).

The shareholder also agreed on the conclusion of two major transactions for the development of the telecom infrastructure of Uzbekistan. In the western part of Uzbekistan, it is planned to attract $96.3 million for these purposes, in the eastern part – $125.8 million.

In addition, the meeting approved the distribution of profits for 2022. Its main part – 212.72 billion soums or 93.75% – will be used to finance strategic projects and repay loans.

Another 2.84 billion soums (1.25%) will be used to pay dividends on preferred shares. The remaining 11.34 billion soums are deposited in the reserve fund.

In 2022, it became known that Uzbektelecom was taking a loan of €200 million from the London branch of Credit Suisse (later bought out by UBS). The funds were supposed to be spent on the modernization of the communications infrastructure in the east of Uzbekistan.

Copyright © Today.Az