MOSCOW—The second-biggest Russian carrier Vimpelcom (BeeLine) is reportedly negotiating a US$250 million credit with the European Bank for Reconstruction and Development (EBRD) to finance regional expansion.
The carrier initially said it planned to place euro bonds in the same amount in the first half of the year. However, experts said a bank loan is better as it can be repaid with stock.
Incidentally, the Vimpelcom-R subsidiary, which deals with regional expansion, changed its legal status from a closed to an open joint-stock company in January, which allows the carrier to independently enter the stock market.
If Vimpelcom secures the loan, it will get cheaper money for regional expansion compared with its major competitor, Mobile TeleSystems (MTS), which placed euro bonds worth US$250 million in December.
Vimpelcom First Vice-President Nikolai Pryanishnikov said the carrier plans to cover the whole of Russia during 2002. BeeLine currently operates in Central Russia, on the Volga, Siberia and North Caucasus. Vimpelcom’s main target now is the second-biggest city of St. Petersburg and the surrounding region.
