Sweden based Tele2 Russia Holding AB has announced that its subsidiary St. Petersburg Telecom will issue 7 decade bonds totaling 30 billion rubles, or $1.06 billion at the current exchange, reports Interfax.
The funds raised from bonds will be used to finance corporate needs and for further development of Tele2 Group, said president of Tele2 Russia Dmitry Strashnov. The company also announced in is annual report for 2010 its intention to invest a third of the raised capital in Russia this year, some 2 billion Swedish crowns or about $310 million.
The nominal practice is to find investors for Russian projects abroad, but Tele2 has decided to act outside the box and to invest funds borrowed in Russia in development of local as well as foreign subsidiaries, explained Mr Strashnov. According to Mr Strashnov, the Russian market has the greatest potential among the Tele2 markets and, he said, “we believe that it is a correct and elegant solution.”
Source: Vedomosti
