Finnvera to provide export credit guarantees for supplies to MegaFon of Russia

Citibank N.A. and ING Bank N.V. have arranged three credits, covered by means of export credit guarantees, to OJSC MegaFon, the third largest mobile phone operator in Russia. The total sum of these credits is USD 279.7 million. The export credit guarantees consist of three separate credit arrangements. The credit agencies participating in the arrangements are Finnvera of Finland, EKN of Sweden and Euler Hermes of Germany.

Among the participants, Finnvera is the biggest individual risk-taker with a credit of USD 135 million. EKN is granting an export credit of USD 53.5 million and Euler Hermes an export credit of EUR 75.6 million, some of which has been reinsured by export credit agencies in Austria and Italy.

MegaFon is expanding its operations on the rapidly growing Russian mobile phone market. The credits are used for financing supply contracts signed by the company with Nokia, Ericsson and Siemens. Components for the network are supplied from Finland, Sweden, Germany, Austria and Italy.

At the end of March 2004, MegaFon had about 7.7 million mobile phone clients. The number of mobile phone clients in the whole of Russia at the end of May 2004 totalled approximately 47 million, or over 30 per cent of the population.

Further information

Topi Vesteri, Director, Major Customers and Export Credit Guarantees, tel. +358 400 702 002