MTS signs $ 300 mn loan agreement with New Development Bank to develop network and cloud infrastructure

Mobile TeleSystems PJSC (MTS), Russia’s largest mobile operator and a leading provider of media and digital services, together with the New Development Bank (NDB) set up by the BRICS group of countries, announce the signing of a $300 m credit agreement (“the Agreement”) for digital infrastructure development. The MTS initiative is the first project of its kind to be funded by the NDB.

The Agreement provides for a credit line to be extended to MTS for 7 years that can be drawn down in either U.S. dollars, euros, or Chinese yuan. MTS intends to use the raised funds in further developing the company’s digital infrastructure, in particular including by expanding mobile network coverage in rural areas as well as investing in cloud computing capabilities.

MTS President & CEO Alexey Kornya commented: “MTS is actively working together with international organizations on sustainability projects aimed at improving people’s lives. This agreement with the NDB is a major milestone in advancing vitally important infrastructure projects. The funds secured under this special-purpose loan will help us expand connectivity in rural towns and remote regions, improving access to digital services for both residents and businesses.”

Mr. Marcos Troyjo, President of the NDB, commented: “We are committed to the development of tech-intensive infrastructure in our member countries. Expanding the non-sovereign portfolio, complexity and outreach of operations are priorities for us. Our new loan agreement is the first digital infrastructure project supported by the NDB, and it represents a new stage in the diversification of its operations.”

About the New Development Bank

The NDB was established by Brazil, Russia, India, China, and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).