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October 21, 2021
BUSINESS

EBRD boosts Cosmote in Romania’s 4G race


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 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 M financing arranged by the EBRD: EUR 75 M for the EBRD’s own account and EUR 150 M 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. “At the EBRD, we believe that building a secure ICT infrastructure is crucial in driving innovation and modern knowledge-intensive industries,” said the EBRD’s Director for Romania, James Hyslop. Since the beginning of its operations, the EBRD has invested approximately EUR 6.2 bln in over 330 projects in Romania, mobilising more than EUR 12 bln for these projects from other sources of financing.

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