Telia Lietuva

Capital/Financing Update • May 24, 2017

Disclosure 352766

Telia Lietuva, AB - Notification on material event

Telia Lietuva to optimize its financial liabilities with syndicated loan

Telia Lietuva signed a syndicated EUR 60 million loan with three banks – AB SEB Bank (Lithuania), Danske Bank A/S (Denmark) and Nordea Bank AB (Sweden). Proceeds from the loan will be used to refinance the loan extended a few years ago by Telia Company, a shareholder of the Company, to the telecommunications operator Omnitel. Then the EUR 77 million loan by Telia Company was used for development of 4G network. Lithuanian SEB bank together with SEB bank in Sweden (Skandinaviska Enskilda Banken AB) has coordinated a syndicated loan with equal commitments of EUR 20 million provided by the three above mentioned banks. The tenor of the loan is 5 years. “Following the successful completion of Teo and Omnitel integration, today we are revising the Company’s finance structure and looking for solutions that would allow to manage the capital required for investments and business development more efficiently as well as optimizing existing financial liabilities. The present low interest rate environment is favourable for business allowing to use solutions provided by the banks, therefore it was decided to refinance part of the borrowing that was provided by the main shareholder”, said Kęstutis Šliužas, CEO of Telia Lietuva. “It is a large-scale complex loan facility deal that is still rare in Lithuania and it has been arranged by SEB bank according to the international standards of the Loan Market Association (LMA). Telia Lietuva may be deemed a good example for the market demonstrating how to take advantage of the favourable situation and manage its financial obligations in a professional way“, said Vilius Juzikis, Head of the Corporate Banking Division of AB SEB bankas. Darius Džiaugys, Head of Investor Relations, tel. +370 5 236 7878