Netcity Telecom has signed on April 19, 2018  an amendment and increase of  its  EUR 36 million club loan facility with a new facility of EUR 10 million with a syndicate of two banks - the Romanian Commercial Bank and BRD Groupe Societe Generale The credit facility will be used by the company to supplement over 20 million euros already provided by shareholders for further works on expanding the underground fiber optic infrastructure over the next 3 years. Thus, Netcity Telecom estimates that by 2020 private investment will exceed 70 million euros. The length of the network is expected to double, growing to over 1,800 km, and then to increase each year, depending on the needs of the city. Due to network expansions, revenues received by the Bucharest City Hall from royalty payments from Netcity Telecom will double to over 2 million euros per year.
Netcity Telecom is the operator of the namesake network, responsible for financing it 100%, for its implementation and operation, based on a concession contract signed in 2008 with the Bucharest City Hall for a period of 49 years, with an annual royalty of 12% of revenues.
"This partnership is an important step towards providing the full financing required for Netcity's expansion plans over the next 3 years, and reconfirms our commitment to providing a long-term telecommunications infrastructure appropriate for the needs and expectations of the city's inhabitants. At the same time, it is a sign of confidence from banking institutions in terms of company strategy", said Adrian Răcăşan, Chief Executive Officer, Netcity Telecom, after signing the financing agreement.
Expansion of the network will increase the number of streets whose telecom cable networks will be migrated to the underground. This will help improve the quality of telecommunication services, provide infrastructure support for smart-city services, reduce the risk of accidents caused by illegal and chaotic cable layings, and improve the overall urban appearance.
Netcity Telecom would like to thank all of Bucharestțs residents for the patience and support they have shown throughout the construction of the network.