The Polish national transmission company Emitel has signed a loan agreement with a consortium of six banks.
As a result, it has secured financing of PLN1.5 billion (€350 million) and with an option for this to be increased to PLN1.6 billion upon certain conditions.
The loan will be used to repay the debt resulting from the loan agreement signed in 2016 and, depending on Emitel’s requirements, to finance operating activities of the company and the investments related to its development plans. The contract was concluded for 3.5 years and the closing (release of funds) will take place in the near future, following the satisfaction of the conditions precedent.
Commenting on the development, Aleksander Skolozynski, Emitel management board member and CFO, said: “Our usual approach is to refinance credit liabilities duly in advance, and today’s agreement continues this policy. We have obtained optimal conditions for the company, and ensured a stable source of financing for our business. I thank all the financing banks for their trust and positive assessment of our long-term business assumptions”.
Jim Metcalfe, Managing Partner of Alinda Capital Partners and member of the supervisory board of Emitel, added: “In the coming years, Emitel will have to carry out a large-scale refarming project of the 700Mhz band, and change the broadcasting standard to DVB-T2. In addition, the company intends to further invest in the telecommunications infrastructure, in particular for mobile operators in connection with the planned development of the 5G network in Poland. Therefore, ensuring stable financing of company’s operations for the coming years is key”.
The loan is denominated in PLN and its interest rate was determined on the basis of the base rate plus a margin. The remaining terms of the loan are also in line with market conditions.
The consortium of banks with which the agreement was signed comprised Bank Handlowy w Warszawie S.A., Bank Pekao S.A., DNB Bank ASA, DNB Bank Polska S.A. (acting also as the agent), PKO Bank Polski S.A. and Société Générale.
