Sberbank opens credit line for MegaFon

The MegaFon cellular provider signed an agreement with the Russian savings bank Sberbank for opening a framework credit line of $300m until 2010, the press service of the company reported. Credit resources under this agreement are to be allocated by Sberbank as project financing and will be used for the development of MegaFon's national mobile network. The sum of the credit line could be increased by $75m. The term of specific credit agreements within the general agreement is five years; credits can be released in rubles or US dollars, depending on the borrower's needs.

The parties also signed credit agreements for a sum equal to $185m within the general agreement. MegaFon will receive money under these agreements in the near future.

As MegaFon Chief Financial Officer Dmitry Kononov pointed out, before 2003 the company is planning to increase its regional presence by 50 percent, from 40 to 60 regions and republics of Russia. According to him, Sberbank's credit line will be one of the key instruments for financing the MegaFon network.

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