SSTL obtains Rs 500 cr from Central Bank of India

Sistema Shyam Teleservices Ltd (SSTL) has been sanctioned a loan of Rs.500 cores by Central Bank of India. The loan has been given by the bank for a term of two years with repayment of the entire amount after maturity.

JFSC Sistema will be the corporate guarantor for the loan. Sistema is the majority partner with 74 percent equity in SSTL, which operates MTS brand of telecom service in India.

MTS has plans to connect all the telecom circles which it has been given spectrum and the loan amount will be used for capital as well as operational expenditure.

“The loan from Central Bank of India is an affirmation of the confidence in our business plan by financial institutions ensuring  our roll out plans  in line with our strategy”, said Mr. Sergey Savchenko, Chief Financial Officer of SSTL.

SSTL, has completed one year of operations in March 26 with its brand MTS in India and has close to 4 million subscribers in its 11 circles of operation

About Sistema Shyam TeleServices Limited
Sistema Shyam TeleServices (SSTL) is a joint venture between Sistema {LSE: SSA} of Russia and the Shyam Group of India. Sistema is the majority share holder in this joint venture with a 74% equity stake, along with the Shyam Group holding a 23.5% stake and the remaining 2.5% being publically held. SSTL has spectrum to provide mobile telephony services in all the 22 circles across the country.

MTS is a globally acclaimed telecom brand, the 8th largest telecom brand in the world. MTS has recently been ranked by Millward Brown as 71st out of the top 100 brands in the world. MTS in India is present in telecom circles of Rajasthan, Bihar/Jharkhand, Kolkata, West Bengal and Sikkim, Chennai, Tamil Nadu, Kerala, Karnataka, Mumbai, Maharashtra and Goa, Haryana , Delhi and NCR.