Telecom Italia secures 750 mln euro state-backed loan
MILAN:
Telecom Italia
(TIM) is set to receive a 750-million euro ($884 million) syndicated loan backed by Italy's export credit agency SACE, two sources familiar with the matter told Reuters on Thursday.
The five-year facility provided by a pool of banks will benefit from a 70% guarantee under SACE's Archimede scheme, the sources said, asking not to be named. It is expected to be finalised as early as this month.
The Archimede programme is designed to support Italian companies investing in strategic sectors such as digital transformation and the green transition.
It envisages a maximum exposure of 60 billion euros through 2029, of which 10 billion were already taken on by SACE last year, according to the Treasury's multi-year budget plan unveiled in April.
Despite the phasing out of the state aid emergency programmes adopted in the wake of the COVID pandemic, Italy helps firms secure funding through several guarantee schemes worth more than 13% of gross domestic product (GDP), the latest government data showed.
EU accounting rules state that public guarantees do not drive up the national debt until they are tapped by the banks which benefit.
TIM will use the resources to fund ongoing infrastructure upgrades and boost its digital services, in line with national and
EU digital goals
.
Spokespeople for Telecom Italia and SACE declined to comment.
TIM, the heir to Italy's former phone monopoly and the country's largest telecoms group, last year sold its prized fixed-line network infrastructure for 18.8 billion euros to a consortium led by U.S fund KKR and including Italy's Treasury.
The deal, aimed at slashing the company's debt pile and streamlining its operations, has helped TIM to improve its credit rating, which remains below investment grade territory.
State-backed financial conglomerate Poste Italiane has become TIM's single largest investor this year with a 24.8% stake, replacing France's Vivendi.
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