Magyar Telekom secures EU funding

December 16, 2013 09.17 Europe/London By Chris Dziadul

Magyar Telekom HQMagyar Telekom has signed a long-term agreement with the European Investment Bank (EIB) to finance its future fixed line and mobile broadband network development projects.

Under it, the telco will take out a loan of 200 million, or around HUF60 billion, from the bank through Deutsche Telekom as the financial intermediary, with the loan being denominated in HUF with a tenor of five years.

The network development projects to be financed by the loan will take place between 2014 and 2016.

Besides increasing coverage, they will expand the capacity of fixed line and mobile networks and develop the IT systems involved.

EIB is based in Luxembourg and the long-term lending institution of the EU.

Owned by member states, it makes long-term finance available for sound investment in order to contribute towards EU policy goals.