RCS&RDS receives $500 mln loan

Sources within the company indicated that the final loan agreement was signed in December 2007 and the money has already been transferred to RCS&RDS accounts. “That is true,” said ING Romania’s General Manager, Misu Negritoiu, for Business Standard.

The funds will be used to refinance an older company loan and to develop a 3G mobile telephone network. To date RCS&RDS’s mobile network was launched in only a few cities in Romania.

“Part of the money will be used to finance the company’s current projects, to expand the coverage for broadband internet services, and fixed and mobile phone services,” RCS&RDS Commercial Manager, Ovidiu Ghiman, told Business Standard.

To finance its 3G network, the company initially planned to list on Europe’s largest capital market, the London Stock Exchange (LSE), but dropped the plan because of lack of investor interest.