BSTDB supports the development of Albanian telecom sector

News | 18-Apr-2008

BSTDB will make available a € 25 million loan to finance the development of Albtelecom, the main Albanian telecommunications operator. The loan will be provided to a special purpose vehicle, a private consortium of Turkish investors - Calik Energi Telekomunikasyon Hizmetleri A.S (CETEL) and Turk Telekomunikasyon A.S (Turk Telecom).

The loan will allow Albtelecom to restructure its operations, making it a more efficient and a customer-oriented company. Following the investment, Albtelecom will be able to offer new and better quality services to its customers in Albania. The capital investment programme includes investments to upgrade and expand the existing fixed-line network infrastructure, building a new mobile GSM network and developing new broadband and data services.

The operation represents a total investment of Euro 100 million, jointly provided by BSTDB and EBRD, both extending A-loans, and a B-loan portion of €45 million which will be provided by commercial banks.

The operation has high economic development impact as it supports investments for the upgrade and further development of the Albtelecom’s network and IT infrastructure. It facilitates the mobilization of solid funding outside of the Black Sea region and exploits further co-financing opportunities between BSTDB, EBRD and international commercial banks. The operation also promotes regional cooperation by envisaging the involvement of a Turkish company in the privatization of the Albanian telecom company.

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Albtelecom Sh.A., the Albanian incumbent fixed-line operator, started its business in 1912 by providing telecommunications and postal services in Albania. Albtelecom was privatized in 2007, when the government sold the 76 percent stake to the Consortium of Calik Enerji and Turk Telecom. Albtelecom owns a network of approximately 275.000 lines and about 256.000 subscribers, covering mostly urban areas of the country.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. The Bank supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 (both with positive outlook) by Moody’s.

The European Bank for Reconstruction and Development (EBRD), owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from central Europe to central Asia. Visit the EBRD’s website: http://www.ebrd.com/