Sistema Shyam gets $70 mn loan from Bank of China

Sistema Shyam TeleServices, a joint venture between Russian firm Sistema and Indian Shyam Group today said it has signed a $70-million loan agreement with the Bank of China for nation-wide expansion of its mobile network.

The company would invest the loan amount to source supplies from telecommunications equipment provider ZTE and network services to build-out the CDMA network, Sistema Shyam TeleServices (SSTL) said in a statement.

The loan is for eight years with three-year moratorium on principal repayment.

"The deal with Bank of China is one of the many steps that we are taking to add impetus to our plan of establishing the MTS brand in India and differentiate positioning on parameters of infrastructure and network quality," SSTL CFO Sergey Savchenko said.

He added, the loan would be significant in supporting SSTL to expand its geographical reach and serve the growing subscriber-base.

SSTL is a new entrant having licence to operate in all 22 telecom circles in India.

It currently, serves over 1.35 million subscribers across six circles of India, including Tamil Nadu, Kerala, Rajasthan, Kolkata, West Bengal and Bihar.