MTel receives HUF60bn EIB loan to fund broadband

16 Dec 2013

Deutsche Telekom (DT)-backed Hungarian telco Magyar Telekom (MTel) has secured a HUF60 billion (USD273.3 million) loan from the European Investment Bank (EIB) to help fund its broadband investment programme. It is understood that the telco’s German parent acted as the financial intermediary for the five-year loan deal, which will be used to fund the Magyar group’s fixed and mobile broadband CAPEX plans.

As reported by TeleGeography, last week DT announced it is transferring its majority holding in MTel to a Dutch company, in a move aimed at creating a holding structure. Portfolio cited an approval by the Hungarian Energy and Public Utility Regulatory Authority as showing that Germany’s T-Mobile Global Holding Nr. 2, controlled by DT, is handing over its 59.21% stake in MTel to CMobil, a company registered in the Netherlands. MTel was directly owned by Deutsche Bank-created MagyarCom Holding until earlier this year, when the latter was amalgamated into its direct parent company T-Mobile Global Holding Nr. 2, which thus became the majority owner of MTel. Following the latest transaction, CMobil now controls a majority stake in both DT’s Hungarian and Czech subsidiaries.

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