Stock Market News

Telecom Italia to get state guarantee for $2.1 billion loan – sources

2022.06.27 21:25

Telecom Italia to get state guarantee for $2.1 billion loan - sources
FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi

By Giuseppe Fonte and Valentina Za

ROME (Reuters) – The Italian Treasury is set to guarantee a 2 billion euro ($2.1 billion) bank credit line for Telecom Italia (BIT:TLIT) (TIM), three sources close to the matter said on Monday, in a boost to the phone company’s turnaround efforts.

The loan would shore up TIM’s finances as CEO Pietro Labriola works on a revamp plan for the debt-laden group centred on the separation of its wholesale fixed network operations from services businesses.

The parties agreed to reduce the size of the financing from the 3 billion euros initially discussed due to a drop in TIM’s expected financial needs, the sources added, speaking anonymously due to the sensitivity of the matter.

Under a temporary easing in European Union rules on state aid, Italy’s credit export agency SACE is able to provide guarantees covering up to 80% of loans granted to large companies facing difficulties due to the COVID-19 pandemic.

The aid scheme runs until the end of this month and has already allowed SACE to provide guarantees on around 36 billion euros in bank loans to large Italian companies, according to Treasury data as of mid-June.

The sources said Economy Minister Daniele Franco was expected to sign off on the decree granting TIM the state guarantee this week.

The loan will be provided by a group of banks comprising Italy’s UniCredit, France’s BNP Paribas (OTC:BNPQY) and Credit Agricole (OTC:CRARY), as well as Spain’s Santander (BME:SAN), which have authorised it pending Rome’s approval.

The Italian government will guarantee 80% of the sum, one of the sources added.

TIM declined to comment.

SACE’s board cleared the state guarantee on May 10 without making its decision public, Reuters reported last month.

As part of a revamp plan to be presented to investors on July 7, Labriola is considering an outright sale of TIM’s domestic landline grid and international cable unit Sparkle, sources have previously said.

TIM is discussing a potential deal with state lender Cassa Depositi and Prestiti (CDP), after they reached a non-binding accord last month to create a unified broadband champion in Italy combining TIM’s network assets with those of CDP-controlled rival Open Fiber.

($1 = 0.9447 euros)

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 84,118.54 0.44%
ethereum
Ethereum (ETH) $ 2,271.95 1.61%
tether
Tether (USDT) $ 0.998912 0.01%
xrp
XRP (XRP) $ 2.18 0.51%
bnb
BNB (BNB) $ 602.95 0.27%
solana
Solana (SOL) $ 137.44 2.53%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.205265 1.62%
cardano
Cardano (ADA) $ 0.63876 1.25%
staked-ether
Lido Staked Ether (STETH) $ 2,270.19 1.34%
tron
TRON (TRX) $ 0.226995 1.07%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,022.51 0.44%
litecoin
Litecoin (LTC) $ 127.47 2.49%
chainlink
Chainlink (LINK) $ 15.01 0.88%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,711.62 2.30%
avalanche-2
Avalanche (AVAX) $ 22.37 3.43%
sui
Sui (SUI) $ 2.80 1.49%
stellar
Stellar (XLM) $ 0.280489 1.40%
leo-token
LEO Token (LEO) $ 9.20 1.68%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 1.25%
the-open-network
Toncoin (TON) $ 3.37 2.91%
hedera-hashgraph
Hedera (HBAR) $ 0.198002 2.20%
usds
USDS (USDS) $ 1.00 0.06%
polkadot
Polkadot (DOT) $ 4.87 2.31%
mantra-dao
MANTRA (OM) $ 7.32 3.14%
hyperliquid
Hyperliquid (HYPE) $ 20.53 6.29%
weth
WETH (WETH) $ 2,272.00 1.70%
ethena-usde
Ethena USDe (USDE) $ 0.99984 0.05%
bitcoin-cash
Bitcoin Cash (BCH) $ 294.56 0.03%
bitget-token
Bitget Token (BGB) $ 4.11 2.13%
uniswap
Uniswap (UNI) $ 7.81 0.04%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,409.42 1.80%
monero
Monero (XMR) $ 209.09 0.74%
whitebit
WhiteBIT Coin (WBT) $ 26.15 0.58%
near
NEAR Protocol (NEAR) $ 3.04 1.63%
aptos
Aptos (APT) $ 6.05 4.39%
pepe
Pepe (PEPE) $ 0.000008 0.70%
dai
Dai (DAI) $ 0.999569 0.02%
internet-computer
Internet Computer (ICP) $ 6.56 3.51%
ondo-finance
Ondo (ONDO) $ 0.964347 0.48%
aave
Aave (AAVE) $ 199.89 0.52%
susds
sUSDS (SUSDS) $ 1.04 0.08%
ethereum-classic
Ethereum Classic (ETC) $ 18.50 0.23%
bittensor
Bittensor (TAO) $ 326.31 7.60%
okb
OKB (OKB) $ 45.72 1.59%
gatechain-token
Gate (GT) $ 21.29 2.92%
mantle
Mantle (MNT) $ 0.754823 0.62%
official-trump
Official Trump (TRUMP) $ 12.58 2.59%
tokenize-xchange
Tokenize Xchange (TKX) $ 30.10 1.74%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,155.55 0.42%