BANK CONSORTIUM TO LAUNCH EUR75MN TO GLOBUL
A consortium of Bulgarian and Austrian banks is going to launch a one-year credit line worth USD75MN to Cosmo Bulgarian Mobile - the company that controls the Globul GSM-operator and is 100% own by the Greek telecommunication company OTE. The money will be used for expansion of the Globul telecommunication network.The consortium is led by Bank Austria Creditanstalt, which is part of the German HypoVereinsbank Group. It also includes the Austrian bank's subsidiary HVB Bulgaria, United Bulgarian Bank (UBB), the Sofia branch of the National Bank of Greece (NBG), and the Bulgarian Post Bank. The consortium was chosen to be partner of Globul as it submitted the best offer among other world known credit institutions such as Citibank and BNP-Paribas.UBB, which majority owner with 89.9% of the capital is NBG, will launch EUR30MN. The Sofia-based branch of NBG will pay EUR15MN, and Bulgarian Post Bank will provide EUR8MN. The remaining EUR22MN will be launched by Bank Austria Creditanstalt and HVB Bulgaria.According to the press release of the Austrian bank, the credit line will be insured against political and commercial risk by an European export credit agency. The consortium will launch the credit line in the end of 2002. The line should become effective by year-end. On July 12, Bank Austria Creditanstalt and UBB signed an agreement with Cosmo Bulgaria Mobile for a six-month bridge loan of EUR70MN. The loan will provide preliminary financing of the project for construction of the Globul telecommunication network.