Sistema PJSFC and VTB Bank have agreed on long-term financing to be provided to RTI Group.
Under the agreements, the entire debt of RTI Group, with the exception of liabilities pertaining to state defence orders (which are covered by government guarantees), are to be refinanced in 2016-2017 by VTB, which will become the group's major lender, providing up to RUB 28.5bn in financing.
The loan agreements provide for the deferment of a significant portion (about 60%) of RTI Group's debt until 2021, to be followed by annual settlement payments through the end of 2026, as well as a grace period for interest payments.
The rest of the debt will be refinanced through five-year revolving credit lines, which will give RTI Group additional flexibility in managing its working capital.
Sistema will buy from VTB (as the legal successor of OJSC Bank of Moscow) 15.32% of OJSC RTI's share capital for a consideration of RUB 4.5bn, with final settlement in January 2019.
The acquisition will make Sistema the owner of 87% of the equity in OJSC RTI. The Russian Federal Antimonopoly Service (FAS) approved the transaction in November 2016.