MTS Extends the $630 Million Loan

Mobile TeleSystems, the largest mobile company in Russia, managed to convince more than 10 banks to extend the maturity of loans worth 630 million U.S. dollars, after it offered an increase in interest rates and commissions, according to a close source.

Mobile TeleSystems, known as MTS, will pay an interest of 6.5% higher than Libor, and a commission of 2, 5% for three years extend, of the period of repayment of the loan due May 2006.

The telephone operator from Moscow pays an interest of 0.8% higher than Libor, for loan contracted in 2006, the last time the MTS turned to the syndicated loan market.