March 6, 2018 / 7:00 PM / 2 years ago

Russia's Sistema pledges 16 pct of MTS shares as collateral for Sberbank loan

MOSCOW, March 6 (Reuters) - Russia’s Sistema conglomerate said in a statement on Tuesday it had pledged 16 percent of shares in Russia’s biggest mobile phone operator MTS as collateral as part of its credit line agreement with Sberbank.

It did not specify the size of the loan.

In February, Sberbank, Russia’s largest lender, extended a credit line to Sistema for a five-year period for the amount of up to 105 billion roubles ($1.85 billion), of which 40 billion roubles were allocated for Sistema’s obligations under the settlement agreement with Russian oil giant Rosneft.

Interfax news agency reported on Tuesday, citing a source close to Sistema, that the 16 percent stake in MTS was to be used as collateral for the loan worth 60 billion roubles, of which 40 billion roubles were used as part of the settlement agreement with Rosneft plus 20 billion roubles which Sistema planned to spend on the current debt refinancing.

$1 = 56.7144 roubles Reporting by Maxim Rodionov Editing by David Evans

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