Financed Projects Astelit

Identification Code:

OP/05/0536

Total Operation Cost:

390.000.000

Maturity:

72 months

Operation Status:

Description and Purpose of the Operation:

BSTDB extended a US$ 23 million loan to Astelit LLC to finance further network roll-out of the Astelit’s GSM network in Ukraine, working capital requirements and debt refinancing. The Operation aims to ensure that Astelit is a modern mobile telecommunications company with consumer orientated service packages and an advanced communications network infrastructure, which provides high quality services and communication portfolios to private and business users. The funding of the operation of around US$485m is arranged by ING Bank and Standard Bank plc and includes sponsors contribution of approximately US$125m and long term senior secured debt of around US$360M. The debt part of the operation includes a combination of Export Credit Agencies facilities in the amount of up to US$270m and Commercial Facilities in the amount of up to US$90m provided by other development, bilateral or multilateral agencies and commercial banks. BSTDB’s debt facility will be an integral part of the Commercial Facilities. There is also possibility for a third facility tranche, which will include US$30m Standby Facilities supported by Ericsson and Nokia.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Telecommunication Services

Domain:

Private

Borrower/Client:

ASTELIT LLC

Co-Financiers/Participants:

Export Credit Agencies (Exportkreditnambden and Finnvera plc), ING Bank N.V. Standard Bank Plc. ("Finnvera").

Guarantors/Sponsors:

- Turkcell Iletisim Hizmetleri A.S. (Turkcell), the leading provider of mobile communication services in Turkey; and - JSC System Capital Management (SCM), the industrial conglomerate operating in a variety of sectors in Ukraine including communications.

Developmental and Regional Cooperation Impact:

The operation will increase employment of both technical and administrative type and will generate taxes. Besides, as all infrastructure projects it would create positive externalities improving the social welfare. Thus, the project will have a strong regional cooperation impact since it represents a joint venture between Turkcell, a Turkish company and a Ukrainian industrial conglomerate in a mobile telephony operation.

Environmental Classification and Impact (summary):

According to BSTDB environmental categorization the operations is screened as B. The Environmental Assessment concluded that the Company complies with all EH&S rules and regulations of Ukraine. TAccording to BSTDB environmental categorization the operations is screened as B. The Environmental Assessment concluded that the Company complies with all EH&S rules and regulations of Ukraine. The equipment supplied by Nokia and Ericsson is certified and it meets all the international and national industry standards, and all projects related to construction and installation of the telecommunication equipment pass relevant SanEpid examination and in strict coordination with relevant authorities. The Borrower is required to remain compliant with all EH&S laws, obtain all required EH&S approvals and implement procedures to monitor environmental compliance and prevent any liability under any environmental law.

Operation Leader:

Energy & Infrastructure, General Industries, Transport, Tourism 2

E-mail:

ei@bstdb.org,gitt2@bstdb.org