Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

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

Stock Markets Jun 27, 2022 16:56
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 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 (LON:0RLS), France's BNP Paribas (EPA:BNPP) and Credit Agricole (EPA:CAGR), 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)

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

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email