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Sistema Shyam plans to raise $400m
15 March 2010
The Indian-Russian company which runs MTS mobile services in India is looking to raise $400m of debt
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The joint venture between Russia’s Sistema and the Shyam Group of India is planning to raise nearly $400 million of debt in India in 2010, to fund its operations.
Sistema Shyam Teleservices, which started its operations under the Mobile TeleSystems brand in December 2009, will get a nearly $100 million direct loan from an Indian bank in April 2010, while the rest will be raised in tranches in 2010.
The company has already raised nearly $1 billion, including $230 million through the external commercial borrowing route.
The telco, which intends to invest nearly $2 billion by the end of 2010 in India, has already made investments of around $1.5 billion.
The Russian government may also buy a 20% stake in SSTL for nearly $676 million. SSTL, which has 4 million users, provides mobile services on the CDMA platform in eight of India’s 22 telecom service areas. GTB