NDB and Mobile TeleSystems PJSC Sign Loan Agreement for Cellular Network and Cloud Services Expansion Project


On January 21, 2021, the New Development Bank (NDB) and Mobile TeleSystems (MTS) Public Joint Stock Company signed the Loan Agreement for Cellular Network and Cloud Services Expansion Project (the Project). Under the Agreement, NDB will provide a loan of USD 300 million to MTS for upgrading cellular network infrastructure and cloud services infrastructure.

The Loan Agreement was signed by Mr. Xian Zhu (Vice President and Chief Operating Officer, NDB) and Mr. Alexey Kornya (Chairman of the Management Board, President and Chief Executive Officer, MTS).

The Project aims to improve mobile network penetration across Russia and provide cloud-based services for enterprises. The components of the Project include (i) Upgrade of cellular network infrastructure, including installation of new cell towers; and (ii) Deployment of cloud services infrastructure.

The Project will contribute to increasing the availability of broadband internet services for households in Russia as well as improving the digital integration of small-size cities and urban settlements with the mainstream economy. The Project is also expected to result in data secuarity benefits and cost savings derived by enterprises by migrating to cloud-based services. It is the first digital infrastructure project supported by the NDB, and it represents a new stage in the diversification of its operations.

“We are committed to the development of tech-intensive infrastructure in our member countries. Expanding the non-sovereign portfolio, complexity and outreach of operations are priorities for us,” said Mr. Marcos Troyjo, President of NDB.

“MTS is actively working together with international organizations on sustainability projects aimed at improving people’s lives. This agreement with the NDB is a major milestone in advancing vitally important infrastructure projects. The funds secured under this special-purpose loan will help us expand connectivity in rural towns and remote regions, improving access to digital services for both residents and businesses,” commented MTS President & CEO Alexey Kornya.

Background information

The NDB was established by Brazil, Russia, India, China, and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).

Mobile TeleSystems PJSC (“MTS” – NYSE: MBT; MOEX: MTSS), Russia’s leading mobile connectivity and digital services provider, offers a range of mobile, fixed-line, and digital services. We serve over 80 million mobile subscribers in Russia, Armenia, and Belarus, and about 9 million customers in Russia of fixed-line services, including fixed voice, broadband internet, and pay-TV. To keep pace with evolving customer demand, MTS is redefining what telecommunications services are by offering innovative products beyond its core network-related businesses in various tech segments, including Big Data, financial and banking services, internet of things, OTT, cloud computing, systems integration and e-commerce. We leverage our market-leading retail network as a platform for customer services and sales of devices and accessories. MTS maintains its leadership in the Russian mobile market in terms of revenue and profitability. MTS is majority-owned by Sistema PJSFC. Since 2000, MTS shares have been listed on the New York Stock Exchange and since 2003 – on the Moscow Exchange. For more information, please visit: