OREANDA-NEWS. November 10, 2010. OJSC VolgaTelecom held an open auction of selecting a financial institution for concluding the contract of establishing credit lines.

The auction comprised 3 lots. Four banks submitted their bids: OJSC Alfa-Bank, LLC Barclays Bank, OJSC RF Sberbank and OJSC JSCB Svyaz-Bank.

By the decision of the tender committee the first two lots were awarded to OJSC Alfa-Bank, the third lot was awarded to OJSC RF Sberbank, their interest rates were the lowest.

According to terms and conditions of the auction OJSC Alfa-Bank will establish two nonrevolving credit lines of the total amount of RUB 2.5 billion to VolgaTelecom. The limit under the first credit line is RUB 1.2 billion at the rate of 7.304% per annum, the limit under the second credit line amounts to RUB 1.3 billion at the rate of 7,656% per annum. The credit lines will mature in 60 months. The obtained funds will be allocated for the financing of investment program, acquisition of shares/equity stakes in share capital of third parties and refinancing of current liabilities.  

RF Sberbank will establish to VolgaTelecom RUB 1 billion revolving credit line maturing in 24 months, by tranches up to 90 consecutive days at the rate of 6.02% per annum for making payments under VolgaTelecom’s operating, investment and financial activities.