OREANDA-NEWS. The European Bank for Reconstruction and Development (EBRD) is boosting Romania’s fast-growing mobile broadband communications market, with the largest syndicated loan in the country this year, in a move intended to offer people and businesses more value added services.

COSMOTE Romania* – the country’s third-largest mobile operator and a subsidiary of the Hellenic Telecommunications Organization (OTE), the Greek incumbent and leading Southeast Europe telecom operator – will receive a EUR 225 million financing arranged by the EBRD: EUR 75 million for the EBRD’s own account and EUR 150 million syndicated to a diverse group of seven commercial banks.

The loan will enable COSMOTE Romania to finance the renewal of its licences and fulfil the payment for the spectrum allowing fourth generation (4G) mobile services, and to satisfy a part of its capital expenditure requirements for its network.

Romanian demand for mobile broadband services is growing, and greater competition in the provision of 4G services is expected. Companies are facing significant costs linked to investment in networks and services.

The financing arranged by the EBRD will enable COSMOTE Romania to improve its competitive advantage. The company will deliver faster broadband communications with a better quality of service, and will provide new and innovative applications and services.

Mandated Lead Arrangers on this syndicated loan are ING Bank and Societe Generale, Lead Arrangers are Erste Group Bank AG and Eurobank Private Bank Luxembourg S.A., while Citibank, NBG Bank Malta Limited and Raiffeisen Bank International AG come in as Arrangers.

Since the beginning of its operations the EBRD has invested approximately EUR 6.2 billion in over 330 projects in Romania, mobilising more than EUR 12 billion for these projects from other sources of financing.